Norwegian Cruise Line Holdings Ltd (NCLH) forecasts 2018 adjusted earnings per share (EPS) to rise to the range of $4.45 to $4.65 from $3.96 it reached in 2017.
The continued strong global demand for NCLH portfolio of brands will enable the group to further grow revenue, resulting in sixth consecutive year of net yield growth. “This, coupled with the benefit of the launch of Norwegian Bliss and a continued focus on costs, will drive 2018 earnings to record highs,” said Wendy Beck, executive vice president and chief financial officer of NCLH in a statement.
Adjusted net yields should rose by 2.75% as reported and by 2.0% on constant currency terms. Net cruise costs should rise between 0.5% and 1.5% as reported and remain flat or rise by 1.0% in constant currency terms.
Frank Del Rio, president and chief executive officer of the company, said: “It has been a remarkable journey for our Company with more major milestones to come and an amazing trajectory of profit growth for 2018 and beyond. Our solid revenue and earnings performance will continue in 2018, having entered the year in the best booked position in our Company’s history with pricing above prior year across all three of our brands."
Norwegian Cruise Line Holdings, Ltd (NCLH), the third largest cruise shipping group in the world, has reported a strong increase in net profit for the final quarter and full year 2017.
Net profit for the last three months of 2017 increased to $98.7 million from $72.2 million in the same period a year earlier. Revenues increased to $1.25 billion from $1.13 billion.
For the full year 2017, NCLH reported a net profit of $759.9 million, an increase from $633.0 million in 2016. Revenues increased to 5.23 billion from 4.87 billion.
The company said beat its full year earnings expectations, surpassing the midpoint of its initial February 2017 Adjusted EPS guidance of $3.80 by $0.16.
“The strong, record performance we delivered in 2017 was the perfect end to a historic year as we celebrate the five year anniversary of our initial public offering. Over the last five years we have continued our track record of consistent financial performance with a more than sixfold increase in EPS, a doubling of revenue and the expansion of Adjusted ROIC to double-digit levels," said Frank Del Rio, president and chief executive officer of NCLH.
“It has been a remarkable journey for our Company with more major milestones to come and an amazing trajectory of profit growth for 2018 and beyond. Our solid revenue and earnings performance will continue in 2018, having entered the year in the best booked position in our Company’s history with pricing above prior year across all three of our brands."
In the final quarter, Gross Yield increased 2.5% and Adjusted Net Yield increased 3.4% on a Constant Currency basis and 3.9% on an as reported basis. “An increase in Capacity Days along with an increase in marketing, general and administrative expenses increased total cruise operating expense 8.4% in 2017 compared to 2016,” NCLH said.
Gross Cruise Costs per Capacity Day increased 1.2%. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 2.8% on a Constant Currency basis and 3.2% on an as reported basis.
The cruise operations of TUI AG, the Hannover based travel company whose shares are listed in London, have had a strong start of a new financial year as EBITDA rose by 33.5% to €37.5 million, the company said in a statement.
“The Cruises segment continued its growth path in the period under review with a significant increase in its underlying earnings,” the company said in a statement. Its financial year runs to 30 September and the fresh figures relate to the first quarter of the present financial year.
Average rate per passenger per day of TUI Cruises, of which the company owns 50%, rose to €149 from €143, while those of the fully owned Hapag-Loyd Kreuzfahrten unit decreased by €16 to €533. Marella Cruises in the UK enjoyed a rise to £129 from £122.
“In June 2017, Mein Schiff 6 joined TUI Cruises’ fleet. TUI Cruises will launch the new Mein Schiff 1 in May 2018. Marella Cruises has also modernised its fleet: Marella Discovery 2 was launched in May 2017, while Marella Majesty left the fleet in the period under review,” the company said.
Carnival Cruise Line has announced several significant initiatives designed to further bolster its leadership position on the West Coast: the deployment of Carnival Panorama to Long Beach in 2019 – the first new Carnival ship based in Southern California in 20 years; the grand re-opening of its 146,000-square-foot state-of-the-art Long Beach Cruise Terminal, and a multi-million-dollar port development project in Ensenada, Mexico, that will provide guests with one-of-a-kind experiences ashore.
The announcement was made by Carnival President Christine Duffy in Long Beach, California at a VIP ceremony officially unveiling the enhancements to the newly upgraded cruise terminal with travel agents, port officials, local dignitaries and media in attendance.
“This is a momentous occasion for both Carnival and the City of Long Beach – not only are we celebrating the grand re-opening of this magnificent cruise terminal, but also demonstrating our commitment to the West Coast with the deployment of the spectacular new Carnival Panorama in 2019 and the announcement of an exciting new port development project in Ensenada,” said Duffy. “The West Coast is an important market with vast growth potential and these initiatives further demonstrate the confidence in our future success in Long Beach. We are very much looking forward to having Carnival Panorama homeported here beginning next year.”
“The expansion of the terminal and arrival of this exciting new ship is great news for the city of Long Beach, underscoring Carnival’s longstanding commitment to our community while adding additional opportunities for growing our economy and promoting all that our wonderful city has to offer,” said Robert Garcia, mayor of Long Beach. “Carnival has been an excellent partner for 15 years and we look forward to working with them for many years to come.”
Carnival Panorama to the West Coast
In 2019, Carnival will make history when it deploys its third Vista-class ship, the 3,960-passenger Carnival Panorama, on 7-day Mexican Riviera cruises from Long Beach, providing an exciting new seagoing vacation option to this vital and fast-growing market.
Like its name implies, Carnival Panorama will include venues offering both indoor and al fresco experiences, including the Fahrenheit 555 steakhouse, Library Bar, and Bonsai Sushi, along with open-air attractions like the groundbreaking bike-ride-in-the-sky attraction SkyRide, a massive WaterWorks aqua park, and the SportSquare recreation area.
Also featured will be a vibrant Havana section with tropics-inspired staterooms and its own Cuban-themed bar and pool, Family Harbor featuring extra-roomy accommodations, the Family Harbor Lounge, and Ocean Plaza, a spacious dining and entertainment venue with indoor and outdoor seating. Other innovations unique to Carnival Panorama will be announced in the near future.
Reservations for Carnival Panorama are expected to open in late March 2018. Additional information on Carnival Panorama is available at www.carnival.com/cruise-ships/carnival-panorama.
Expanded and redesigned new Long Beach Cruise Terminal
Carnival’s Long Beach Cruise Terminal – the busiest in North America with ships docking five days a week representing a 70% utilization rate – has been operated by Carnival since 2003 and encompasses the world’s largest, free-span geodesic dome originally built to house also Howard Hughes’ Spruce Goose plane and served as the location for many famous Hollywood movies.
With the expansion, Carnival is now utilizing 100% of the dome, up from a portion, for its operations. The renovation of the Long Beach Cruise Terminal more than doubles the size of the facility’s space while dramatically enhancing the overall passenger experience and operational flow. It also includes the expansion of portside shore power to enable larger ships to plug into the local electric grid, reducing exhaust emissions while docked.
The terminal’s striking design features California’s recognizable landmarks, bringing indoors the state’s iconic natural elements, including a backdrop of the majestic Sierra Nevada mountain range. In a nod to the dome’s former tenant, a replica of the Spruce Goose hangs from above, as well as the original model of the plane used in the 2004 movie, “The Aviator.” The dome also includes the cruise industry’s first 1980s-style arcade which is available for families to enjoy.
“This project is many years in the making and Carnival’s Long Beach Cruise Terminal is one of the most visually striking and efficient facilities of its kind, providing a seamless embarkation for our guests while making a tremendous economic impact on the Southern California region,” said Carlos Torres de Navarra, Carnival’s vice president, strategic and commercial port development.
Arrival of Carnival Splendor to Long Beach
The grand re-opening of the terminal coincides with the arrival of Carnival Splendor to Long Beach, which operates seven-day cruises to Mexico and longer-length voyages to Alaska and Hawaii, representing a 40 percent capacity increase on this route.
The 113,300-ton Carnival Splendor is currently the largest ship based year-round in Southern California and offers a variety of onboard amenities, including a 22,750-square-foot Cloud 9 Spa, a reservations-only steakhouse serving prime dry-aged beef and other gourmet fare, a sliding magrodome covering the main pool area, and nearly 600 balcony staterooms.
Carnival Splendor joins Carnival Imagination and Carnival Inspiration which sail three- and four-day cruises to Ensenada and Catalina Island. Together, these three ships carry approximately 600,000 guests annually from Southern California on more than 250 three- to 14-day cruises, offering an unbeatable mix of destinations that appeal to a broad range of consumers, including families seeking an attractive and affordable vacation option.
New port development project in Ensenada
Carnival officials also announced a major port development project in Ensenada, Mexico, currently featured on the line’s three- and four-day cruises from Long Beach. The project will provide guests visiting the destination with an unparalleled, one-of-a-kind dining and retail experiences ashore, along with unique attractions for guests of all ages to enjoy. Details about the development will be announced at a later date.
“This project will provide our guests with a truly unique shoreside experience while making our short cruises from Long Beach even more attractive to consumers,” said Torres de Navarra. “This port development project will make Ensenada one of the West Coast’s premier destinations.”
TUI Cruises, the German premium market cruise line, has ordered a 2,894 passenger newbuilding at Meyer Turku shipyard in Finland, with delivery set for 2023, TUI AG that owns 50% of the company said in a statement.
“TUI Group’s Cruises segment is one of the Group’s strong growth pillars. Due to the continued increase in demand, the world’s number one tourism group is planning to expand the segment by an additional newbuild of the Mein Schiff fleet,” TUI AG said.
The now ordered vessel is of identical design to the Mein Schiff 1 and Mein Schiff 2 with a capacity for up to 2,894 passengers and 111,500 gross tons.
“The future investment underscores TUI Group’s strategy. The cruise business is one of the key elements of the growth roadmap pursued by the globally operating TUI Group. The Group continues to invest in its cruise portfolio and expands, modernises and rejuvenates the fleet. The planned measures will help TUI to accelerate the expansion of this growth segment,” TUI AG said.
Royal Caribbean Cruises, Ltd (RCCL) owns the other half of Hamburg based TUI Cruises.