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Royal Caribbean Cruises Ltd. announced earnings for the first quarter of 2010 and provided guidance for the second quarter and full year 2010.
First quarter 2010 net income increased to $87.4 million, or $0.40 per share, compared to a net loss of $36.2 million, or ($0.17) per share in the first quarter of 2009. The results included a $0.39 per share gain from a previously announced legal settlement. Net Yields for the first quarter of 2010 increased 2.6% – versus guidance of approximately 2%. Net Cruise Costs per APCD (“NCC”) for the first quarter of 2010 decreased 2.2% – better than expectations of approximately flat. Second quarter 2010 Net Yields are expected to improve approximately 6%, and for the full year 2010, Net Yields are forecasted to improve 4% to 5% due to improved business conditions offset by negative currency movements and the impact of the recent European travel disruptions. NCC excluding fuel are expected to be down approximately 1% for the second quarter and for the full year 2010.
Initial estimates for the recent travel disruptions in Europe are a reduction in earnings per share (EPS) of less than $0.05 and this adjustment is reflected in the EPS guidance the company is providing. EPS for the full year 2010 is expected to be in the range of $2.15 to $2.25. Second quarter 2010 EPS is expected to be in the range of $0.16 to $0.21.
“While the economy is still affecting our results, we are pleased to be reporting better than expected revenues and costs and we continue to see a gradual and steady improvement in the booking environment,” said Richard D. Fain, chairman and chief executive officer. Fain continued, “This recovery, combined with our cost containment efforts and improving fleet profile, bode well for improvement in our returns on investment and our balance sheet in 2011 and beyond.”
TravelDailyNews Asia-Pacific editorial team has an experience of over 35 years in B2B travel journalism as well as in tourism & hospitality marketing and communications.
