By Ben Fox Rubin
Royal Caribbean Cruises Ltd. said its fourth-quarter revenue
rose 2.7% as the cruise operator's ticket revenue outperformed
expectations thanks to "strong close-in demand" continuing for
Europe and Asia itineraries.
The company predicted adjusted earnings of $3.20 to $3.40 a
share for the new year, compared with estimates of $3.17 a share
from analysts polled by Thomson Reuters. Net yield, a key industry
metric measuring revenue per available cruise day, is expected to
grow 2% to 3% on a constant currency basis.
Royal Caribbean has appeared to have received limited negative
impact from publicity surrounding rival Carnival Corp., which has
been hurt by some high-profile calamities at sea. Also, despite
some analysts' concerns that Royal Caribbean may face weakening
prices for cruises, the company late last year said its order book
for the new year was ahead of year-earlier levels on load factor
and rates, with most markets showing improvement.
Royal Caribbean, which operates its namesake line and Celebrity
cruises, reported a profit of $7 million, or three cents a share,
compared with a year-earlier loss of $392.8 million, or $1.80 a
share. The prior-year period included an impairment charge of
$413.9 million for its Pullmantur brand. Excluding that charge and
other items, per-share earnings were 23 cents, up from 10 cents.
The company expected 15 cents to 20 cents a share.
Revenue improved to $1.85 billion, in line with analysts
expectations of $1.85 billion. Ticket revenue rose 1.2% to $1.29
billion.
Net yields rose 3.8%, above expectations for growth of 2% to 3%
excluding currency impacts.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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