News

RCCL hits Double-Double target as 2017 net profit hits record 1.63 billion

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 24 January 2018 24 January 2018

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, said it had hit its Double-Double performance targets as it reported 2017 net profit of $1.63 billion, a new record.

In the final quarter of last year, the profit rose to $288.0 million from $281.0 million a year earlier, while operating profit (EBIT) increased to $307.3 million from $296.8 million and revenues reached $2.00 billion from $1.90 billion.

In the full year 2017, net profit rose to $1.63 billion from $1.28 billion in the year before. Operating profit rose to $1.74 billion from 1.48 billion and revenues increased to $8.78 billion from $8.49 billion. Adjusted earnings per share for the full year came at $7.53 per share — beating the Double-Double EPS target and the mid-point of previous guidance by $0.75 and $0.16, respectively,’ the company said in a statement.

The Double-Double programme was announced in July 2014, with an aim double the company’s 2014 earnings per share by 2017 and increase return on invested capital to double digits.

"Our teams worked hard to achieve the Double-Double goals and now they have done it", said Richard D. Fain, chairman and CEO. "Each of the brands performed excellently during the past year raising their guest satisfaction and employee engagement scores to new heights. This augurs well as we focus on our previously announced 20/20 Vision," he added. A combination of strong demand for our North American and European products as well as our onboard offerings drove the growth rate, RCCL said.

Key metrics of the full year 2017 results:

Gross Yields were up 5.7% on a Constant-Currency basis (up 5.9% As-Reported).

Net Yields were up 6.4% on a Constant-Currency basis (up 6.5% As-Reported).

Gross Cruise Costs per APCD increased 1.9% on a Constant-Currency and As-Reported basis.

Net Cruise Costs ("NCC") excluding Fuel per APCD were up 2.0% on a Constant-Currency and As-Reported basis.

UK investor Duke Street buys German river cruise operator A-ROSA

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 17 January 2018 17 January 2018

Duke Street, the London based mid-market private equity group, has agreed to acquire A-ROSA, the German upmarket river cruise operator, from Waterland Private Equity, a German company. The consideration has not been disclosed, the buyer said in a statement.

A-ROSA is a market leader in the premium segment for river cruises on Europe’s Danube, Rhine/Main/Moselle, Rhône/Saône and Seine rivers. The company was established in 2001 as a subsidiary of P&O Princess Cruises and was originally developed as the river cruise complement to AIDA ocean cruises. Based in the northern German city of Rostock and in Chur, Switzerland, A-ROSA has approximately 600 employees and operates a fleet of 11 high quality vessels. More than 85,000 passengers travelled on board A-ROSA cruises in 2017.

The company has, to date, enjoyed a very strong following in its German home market, as well as growing positions in other consumer markets, including the UK. Benefitting from a growing base of affluent older consumers, the river cruise segment performed strongly in the last economic downturn. The A-ROSA brand is highly regarded, with a modern, innovative river cruise fleet and exclusive agreements with key travel agencies. The high quality of on-board food and drink, cabin design and entertainment has encouraged significant levels of repeat bookings. The river cruise market is expected to benefit further from product development, loyalty-based marketing and a reduction in the average age of cruise holidaymakers.

Commenting on the A-ROSA investment, Charlie Troup, Duke Street Managing Partner, said: “We have identified in A-ROSA an exciting opportunity to back the leader in a growing segment of the European leisure market. The management team, led by CEO Jörg Eichler and COO Markus Zoepke, has built a strong consumer proposition for seasoned cruise passengers and new cruisers alike. Waterland has helped the team since 2009 to develop an excellent platform for further growth and we are delighted to be part of the next phase of A-ROSA’s success.”

Jörg Eichler, CEO of A-ROSA, added: “Duke Street moved very quickly in building a solid understanding of our business in a short space of time and have shown real determination to deliver a transaction that allows us to unlock the growth potential to take A-ROSA to the next level. We look forward to working together with the Duke Street team to develop and grow our business over the next years.”

Given the very strong ongoing consumer demand for the company’s offering, the opportunity exists for Duke Street both to expand A-ROSA’s fleet size and launch its product onto new rivers, while increasing its exposure to source markets outside Germany. Growing awareness of the convenience of visiting iconic European cities from a relaxed floating base is expected to sustain growth in the river cruise market and A-ROSA’s penetration of further key consumer economies on the continent. The transaction is subject to approval by antitrust authorities.

Australia's TT-Line to build new 'Spirits' in Flensburger

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 11 January 2018 11 January 2018

TT-Line Company Pty Ltd and German shipbuilder Flensburger Schiffbau-Gesellschaft GmbH & Co. KG (FSG) have signed a letter of intent for the construction of two new ships to replace the current Spirit of Tasmania vessels.

TT-Line chairman Mike Grainger said the companies would now commence contract negotiations and agree to final design specifications.

“FSG was endorsed by the Board after the company short listed a number of international shipyards to build the new tailor-made vessels,” he said.

“As previously announced, we expect to place an order for the new vessels in the first half of the 2018 calendar year and for them to be delivered in time to commence operations on Bass Strait in 2021.”
FSG is a highly respected and experienced ship builder that has constructed more than 750 vessels since it was established in 1872.

It is currently building cruise ferries for Irish Ferries and Brittany Ferries as well as RoRo vessels for the Siem Group. The company has also recently designed and built RoPax ferries for Canadian BC Ferries and Scottish Caledonian MacBrayne.

Rüdiger Fuchs, CEO of FSG, said: "We are very happy and proud to be appointed as TT- Lines preferred shipbuilder for the build of their two next generation passenger ferries."

The TT-Line Board and the executive team of the company worked closely with the Tasmanian Government on vessel replacement through the Ships Replacement Sub- Committee of Cabinet, chaired by the Minister for Infrastructure, Rene Hidding, and including Premier Will Hodgman and Treasurer Peter Gutwein.