Norwegian Cruise Line Holdings, which acquired Prestige cruise Holdings last year, has reported a final quarter loss on sharply increased operating costs.
The company reported a final quarter net loss of 25.6 million compared to a profit of $36.0 million in the same period in 2013, as cruise operating expenses increased by 24% to $518.6 million and other operating expenses doubled to $223.8 million. Revenues rose to 788.9 million from 600.3 million.
For the full year 2014, the group reported net profit of $338.5 million, markedly higher than the $101.7 million figure it reached in the year before. Revenues increased to 3.12 billion from $2.57 billion.
“Looking back at our accomplishments over the past year, it is clear that 2014 will be remembered as one of solid growth and game-changing expansion for the company,” Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd, said in a statement.
“Strong results are a testament to the hard work and dedication of our team members who, despite operating in a challenging environment, kept a keen eye on optimizing pricing and managing expenses while delivering exceptional vacation experiences to our guests.”
Looking ahead, the acquisition of Prestige has created the cruise industry’s most dynamic and diversified operator, one that is well-positioned to realize meaningful synergies and deliver superior results. I look forward to leading this exciting organization, which mixes a deep history in the industry with an entrepreneurial spirit that is unique among cruise operators,” continued Del Rio.
Adjusted Net Revenue, for the period, which excludes the aforementioned deferred revenue fair value adjustment, increased 37.5% to $618.7 million on 23.8% growth in Capacity Days from the addition of Norwegian Getaway and the Prestige fleet as well as an 11.1% improvement in Adjusted Net Yield resulting from the addition of the Prestige fleet and a 3.9% increase on a Norwegian Stand-alone basis (4.5% on a Constant Currency basis).
On an as reported basis, Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 3.5%. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 1.0% on a Norwegian Stand-alone basis (0.8% on a Constant Currency basis) due to investments in conjunction with the Norwegian NEXT program as well as increased marketing expenses to drive demand and stimulate close-in bookings in the fourth quarter and to carry momentum into Wave season.
