“Stars Aligned” As NCLH Reports Record Results Q2 2017
Bruce Parkinson, Open Jaw
NCLH CEO Frank del Rio
“The stars aligned just right,” said Norwegian Cruise Line Holdings Ltd. CEO Frank del Rio on an earnings call discussing record Q2 results for the company.
NCLH, made up of the Norwegian Cruise Lines, Regent Seven Seas Cruises and Oceanian Cruises brands, generated adjusted net income of US$232.7 million compared to $192.6 million in the prior year. Total revenue increased 13.3% to US$1.3 billion. Adjusted net yield increased 8.1% on a Constant Currency basis.
“Positive consumer sentiment in North American and key international markets has resulted in a robust booking environment that continues to be one of the strongest in recent history which, combined with our targeted strategic revenue initiatives drove second quarter revenue and yield growth well above expectations,” Del Rio said.
“All three of our brands benefitted from strength across each of their respective markets and contributed to our second quarter earnings beat.”
Looking ahead, the company expects to generate record earnings for full year 2017, surpassing the high end of its prior full year guidance.
Overall, today's business environment is “strong and we're getting both load and price,” Del Rio told analysts. But like Royal Caribbean CEO Richard Fain, who also recently announced record Q2 results, Del Rio also was cautious in telling analysts not to expect 2018 will score the same net yield increases seen in 2017.
“It would be difficult to predict an almost perfect year like this. Nevertheless, we like how 2018 is coming in. Business is strong. We're building good loads,” he said.