Norwegian Cruise Line Holdings Ltd. (NCLH) posted a record first quarter 2017 revenue, up 6.8 percent from the same quarter a year ago to $1.2 billion. Gross yield was up 5.7 percent and adjusted net yield up 5.5 percent. NCLH is the parent firm of Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises.
First quarter net income of $61.9 million or $.27 a share was down from $73.2 million and $.32 a share in the same quarter the previous year. Adjusted first quarter net income was $91.2 million compared with $86.7 million year over year.
The company said it expects to generate record earnings for the full year 2017. It's also increased its outlook, with adjusted annual earnings per share expected to be in the $3.79 to $3.89 range.
Frank Del Rio, NCLH's president and CEO, said “2017 is off to a solid start with strong first quarter results which include record revenue of $1.2 billion for the quarter.
"The operating environment has remained favorable with strong close-in demand for Caribbean sailings and strength in onboard revenue driving top-line growth above expectations," Del Rio said.
NCLH said the increase in quarterly revenue was primarily attributable to the addition of Oceania Cruises’ Sirena and Regent's Seven Seas Explorer to the NCLH fleet, although that was partially offset by five drydocks during the period.
In addition, the company reported a net yield increase due to the strength of ticket pricing and higher onboard revenue and other revenue.
So what’s the outlook for the full year 2017? It's positive, according to NCLH’s Wendy Beck, executive vice president and CFO: “A strong end to the most successful Wave Season in recent history resulted in a meaningful improvement in our full year booked position, with both occupancy and pricing now well ahead of prior year.”
Beck reported that strong performance witnessed in the company's core markets and reflected in first quarter results also extended to its booked business for future quarters. That allowed NCLH to increase its full year adjusted earnings per share (EPS) and adjusted net yield growth guidance.
But she also said “positive momentum has been partially offset by recent uncertainties in Norwegian Joy’s Chinese source market caused by the South Korea travel restriction.”
Yet, taking all factors into account, Beck's view is that “we are on track to deliver another year of solid financial performance and double-digit adjusted EPS growth.”