Miami-based Royal Caribbean Cruises (RCL) predicted record earnings for 2018 on the back of an improvement witnessed in the third quarter of 2018.
The company’s net income for the third quarter was USD 810.4 million, compared to last year’s USD 752.8 million. Gross yields were up 1.9% and net yields were up 2.6% in constant-currency, exceeding prior guidance due to strong close-in demand for core products and better onboard revenues.
“While 2018 is proving to be another record year, 2019 is shaping up to be even better,” said Richard D. Fain, chairman and CEO.
“I can’t recall ever starting a new year with such an exciting blueprint. Our brands are strong; our new ships are awesome; our existing ship upgrades are powerful; our tech is exciting; our people are psyched; and our other new products are opening new horizons.”
Royal Caribbean Cruises expects full year adjusted EPS to be in the range of USD 8.75 to USD 8.85 per share. This guidance includes Silversea’s operations, which, as previously disclosed, will be accounted for on a three month lag. The transaction closed on July 31, 2018, therefore the results corresponding to August and September will be consolidated in the fourth quarter.
“2018 is shaping up to be another year of yield growth and record earnings,” said Jason T. Liberty, executive vice president and CFO.
The company is experiencing strong early booking trends for 2019. Booked load factors and rates are higher than same time last year across all core products while the booking window has continued to extend.
2019 will see the benefit of full year of operations of Symphony of the Seas, Azamara Pursuit and Celebrity Edge, which are being introduced this year, in various markets as they sail in both North America and Europe.
These three vessels together with Spectrum of the Seas, which will be introduced in June 2019 in Shanghai, “are supporting a solid outlook for 2019.”
“While still early in the booking cycle, the view for 2019 is encouraging and the company expects another year of solid yield and earnings growth.”