Royal Caribbean Group reported first quarter Earnings per Share (“EPS”) of $1.35, which exceeded the company’s guidance due to stronger pricing, onboard revenue, and favourable expense timing.
As a result of strong demand and a successful WAVE season, the company has increased its 2024 Adjusted EPS guidance to 10.70 − 10.90 per share, expected earnings that is up 60pc growth year over year. Total revenues were $3.7bn, Net Income was $360 m or $1.35 per share.
The first quarter of 2024 saw record WAVE season and bookings, leading to higher revenue and yield expectations. Gross Margin Yields increased by 60.3pc and Net Yields by 19.3pc in Constant Currency compared to the same period in the prior year.
Updates on bookings indicate a strong demand and pricing environment, with the market responding well to new ship launches. The increase in earnings includes a $0.10 headwind related to a stronger dollar and higher fuel prices. The company’s customer deposit balance was at $6.0bn.
Jason Liberty said: “demand for our leading brands and the incredible experiences they deliver continues to be very robust, resulting in outperformance in the first quarter, a further increase of full year earnings guidance, and 60pc expected earnings growth year over year. Building on this momentum, we expect to achieve all our Trifecta financial goals in 2024, which allows us to focus on a new era of growth to drive long-term shareholder returns and take a greater share of the rapidly growing $1.9tn global vacation market. Our existing fleet along with our new ships continue to perform exceptionally well, highlighted by the market response to the launch of Icon of the Seas, which has exceeded all expectations. The momentum continues with Utopia of the Seas and Silver Ray, set to launch this summer. And, just this quarter alone, we announced an order for a seventh Oasis Class ship and the expansion of our Royal Beach Club portfolio in Cozumel; and we officially broke ground on Royal Beach Club Paradise Island. These strategies will further propel our leadership in the cruise industry and push us to new heights in the vacation industry.”
