Norwegian Cruise Line Holdings, Ltd, (NCLH) the world’s third largest cruise shipping group, has reported a fall in second quarter net profit on higher operating expenses, but the profit rose in the first half of the year.
Group net profit fell to $145.2 million in the second quarter from $158.5 million in the same period last year, as operating expenses increased by $42 million. Revenues rose to $1.19 billion from $1.09 billion.
In the first six months of the year, the profit rose to $218.5 million from $137.0 million. Revenues increased to $2.26 billion from $2.03 billion, the company said in a statement.
Adjusted Net Yield increased 1.2% on a Constant Currency basis or 0.8% on an as reported basis on Adjusted Net Revenue of $917.8 million
Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 4.1% on a Constant Currency basis or 4.0% on an as reported basis. The increase was primarily due to four scheduled Dry-docks in the quarter compared to one in the prior year.
"While successive geopolitical events dampened North American consumer demand primarily for our Mediterranean itineraries, our management team worked diligently to identify cost saving opportunities to partially mitigate these impacts and generate solid Adjusted EPS growth of 13%," said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings.
"It was a challenging booking environment where we remained mindful of our go to market strategy to minimize discounting and maintain our hard-fought pricing gains, resulting in lower occupancy, which in turn lowered onboard revenue and overall Net Yield growth compared to our expectations earlier in the year, " he said.
