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NYK’s cruise operations enjoyed strong year

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 30 April 2014 30 April 2014

Nippon Yusen Kaisha (NYK), the Japanese shipping giant, says its cruise operations enjoyed a strong year to 31 March 2014, with both its brands performing well.

Recurring profit of JPY0.7 billion compared to a loss of JPY3.7 billion in the previous 12 month period. While operating result improved to a profit of JPY0.9 billion from a loss of JPY 3.4 billion. Revenues rose to JPY45.2 billion from JPY35.0 billion in the same period a year earlier

“Sales were robust for both Crystal Cruises in North America and Asuka Cruises in Japan. Profit structure reforms also took effect with implementation of various sales marketing and cost reduction measures,” the company said in a statement. “As a result, the cruises segment showed significant improvement and sharply higher revenues compared with the previous fiscal year.”

Norwegian Cruise Line reports profit for the first quarter 2014

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 29 April 2014 29 April 2014

Norwegian Cruise Line today reported results for the quarter ended March 31, 2014. The company also announced that its Board of Directors today has authorized a three-year, $500 million share repurchase program (see separate story).
 
First quarter highlights

– Adjusted EPS improvement to $0.23 from $0.06 in 2013
 
– Net Yield increase of 3.8% (3.9% on a Constant Currency basis)
 
– Revenue increase of 25.9% to $664.0 million
 
– Adjusted EBITDA increase of 39.6% to $139.3 million; 200 basis point margin improvement
 
– Successful introduction of Norwegian Getaway to the fleet
 
First quarter results
 
"Our strong results in the quarter include an almost four-fold increase in earnings on an adjusted basis," said Kevin Sheehan, President and Chief Executive Officer of Norwegian Cruise Line. "With both Breakaway class ships now in our fleet, it is easy to appreciate the impact of their impressive earnings power, which includes commanding double-digit premiums over other Norwegian ships in the same itinerary," continued Sheehan.

For the first quarter of 2014, the Company reported an increase in Adjusted EPS to $0.23 on Adjusted Net Income of $49.6 million compared to $0.06 and $12.9 million, respectively for the same period in 2013. On a GAAP basis, diluted earnings per share and net income were $0.24 and $51.3 million, respectively.

Net Revenue in the period increased 27.8% to $499.3 million, driven by a 23.2% increase in Capacity Days and a 3.8% improvement in Net Yield. The increase in Capacity Days was primarily from the addition of Norwegian Breakaway and Norwegian Getaway to the fleet in May 2013 and January 2014, respectively. The Net Yield improvement of 3.8%, or 3.9% on a Constant Currency basis, was a result of higher passenger ticket and onboard and other revenue. Revenue for the period increased to $664.0 million from $527.6 million in 2013.

Adjusted Net Cruise Cost excluding Fuel per Capacity Day increased 3.7% (3.4% on a Constant Currency basis) mainly due to inaugural and launch-related costs for Norwegian Getaway along with incremental expenses for the planned dry-dock of Norwegian Spirit. The Company’s fuel price per metric ton, net of hedges, was $643 compared to $673 in 2013. Fuel consumption per Capacity Day in the quarter decreased 6.8% which excludes an additional benefit of 0.7% from dockside charters for vessels used as floating hotels.

Interest expense, net for the quarter was $31.2 million compared to $127.7 million in 2013. Interest expense, net in 2013 included $90.5 million in charges related to the prepayment of certain credit facilities and the redemption of certain of the Company’s senior notes with proceeds from both the Company’s initial public offering and other transactions. Excluding these charges, Adjusted Interest Expense, net was $37.2 million in 2013. The year-over-year reduction in interest expense is due to lower interest rates in the period resulting from the Company’s capital structure optimization initiatives carried out in 2013  which more than offset the impact from higher debt balances related to the financing for Norwegian Breakaway and Getaway.

The Company recorded an income tax benefit of $9.4 million compared to an expense of $2.2 million in the prior year. The income tax benefit in 2014 is primarily related to the election of an alternative, acceptable tax methodology in connection with the change in the Company’s corporate entity structure completed in 2013. This election resulted in a $6.7 million non-recurring benefit which has been excluded from Adjusted Net Income and Adjusted EPS.

MSC Cruises to re-deploy Divina to the Med in summer 2015

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 25 April 2014 25 April 2014

"MSC Cruises is strengthening its commitment to serving the North American market with the deployment of the MSC Divina to the Mediterranean during the summer of 2015. The first of the line’s ships dedicated to North American travelers, MSC Divina will bring its signature service and onboard experiences to the most sought-after Mediterranean seven-night itineraries beginning May 16 through October 3, 2015," the company said in a statement.

MSC Divina is currently sailing Eastern and Western Caribbean cruises from PortMiami which continue through April 2015.

"After exposing MSC Divina to thousands of guests in the Caribbean, customer surveys are showing an increased desire for North Americans to sail onboard MSC Divina in the Mediterranean," said Richard E. Sasso, president, MSC Cruises USA. "The enhancements made at the start of the Caribbean season to ready MSC Divina for the North American market have certainly paid off with positive ratings and increased repeat business. This has led to our decision to maintain the MSC Divina onboard product designed around the senses of American taste, palette, entertainment and comfort and expand her offerings into the Mediterranean, the hottest and most desired vacation destination by North Americans today," continued Sasso.

MSC Divina will begin her Grand Voyage on April 26, 2015, from Miami making a stop in New York, King's Wharf, Bermuda and then continuing onto Ponta Delgada, Lisbon, Cadiz, Barcelona, Naples and Civitavecchia. From May 16, 2015 through October 3, 2015, the ship will sail seven-night Mediterranean cruises departing from Civitavecchia and visiting the ports of La Spezia, Cannes, Palma de Mallorca, Barcelona, Naples and returning to Civitavecchia.  While in La Spezia, MSC Divina will offer late night stays allowing guests to visit nearby cities of Pisa, Florence, Portofino and Cinque Terre. In addition, the call in Naples will allow time to visit Pompei, Capri, Sorrento, and the Amalfi Coast.

Guests will have the opportunity to embark in two marquee ports, Civitavecchia on Saturdays and Barcelona on Wednesdays, allowing for a customized vacation experience with outstanding pre- and post-cruise opportunities and ample airlift from the United States and Canada.

In October 2015, upon completion of her Mediterranean season with a unique 10-night cruise, MSC Divina will enter dry dock in Europe. While in dry dock, the ship will receive some surprise enhancements specifically for the North American market before returning back home to South Florida for a third season of seven-night Caribbean cruises starting in November 2015.

“We are very excited to extend to our travel agent partners the ability to now offer the best of MSC Divina in both the Caribbean and the Mediterranean,” said Ken Muskat, executive vice president, sales, PR & guest services.  “Continuing our Serving You commitment to the trade, we will be offering extensive training on how to best sell MSC Divina in the Mediterranean, provide online toolkits with ready-made marketing and selling materials, and launch a new e-learning online tool to ensure our partners are completely confident selling the MSC brand in Europe.  Our recent sales force expansion was not only for MSC Divina in the Caribbean, but a strategic long term decision given the opportunities we have with Europe and expectations that future new-builds will be coming to our market,” Muskat continued.

Michelle Fee, president & CEO of Cruise Planners, called the decision “opportune” given the fact that MSC Divina has quickly established a name for herself in the North American market and demand for a North American product in the Mediterranean is increasing.  MSC Divina provides a comfort to the market that can now be extended to other destinations.

MSC Divina's 2015 Mediterranean season will first open for pre-sale to past guests of MSC Cruises on Tuesday, April 29, 2014.  Bookings will then be open to the general public on Thursday, May 1, 2014.  Bookings made by July 31, 2014 will be eligible for an exclusive balcony upgrade plus onboard credit.

More ships, new itineraries coming for Viking River Cruises in 2015

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 24 April 2014 24 April 2014

Demonstrating no slowdown in the European river cruise boom, Viking River Cruises has confirmed official plans for the company’s expansion in 2015. Viking has ordered 12 new river vessels for next year – 10 additional award-winning Viking Longships and two unique vessels for the Elbe River. Next year will also see the launch of two new itineraries highlighting the Rhine River. The announcement comes directly on the heels of Viking’s world record-setting christening last month of 18 vessels across four countries in five days and will bring the company’s total fleet size to 64 river vessels in 2015.

“When we started this company 17 years ago, we had two cell phones and no money, but we knew there was an opportunity to do things differently,” said Torstein Hagen, Chairman of Viking Cruises. “By focusing on an audience of like-minded travelers, and designing ships and itineraries that help travelers better explore their destinations, we are proud that river cruising is now the fastest-growing segment of travel.”

New Longships for 2015

Of the 12 vessels on order for 2015, 10 are Viking Longships, which have amassed a long list of prestigious awards since debuting in 2012. They recently topped Condé Nast Traveler’s annual readers’ Cruise Poll for best river cruise ships – with Viking Odin specifically being named the #1 top-ranking river cruise ship – and the entire class of vessels was named “Best New River Ships of 2012” in Cruise Critic’s Editors’ Picks Awards.

Viking Longships integrate a patented corridor design and cutting-edge technology with comfortable amenities that reflect guest preferences and current travel trends. These features include a revolutionary all-weather indoor/outdoor Aquavit Terrace that reinvents the onboard lounge experience by bringing the panoramic outdoor river scenery indoors with retractable floor-to-ceiling glass doors and allows guests to enjoy the views and dine al fresco. Accommodating 190 passengers in 95 staterooms, Viking Longships have a patented layout that allows for two Explorer Suites – the largest river cruise suites in Europe – as well as seven two-room Veranda Suites with a full-size veranda in the living room and a French balcony in the bedroom; 39 Veranda Staterooms with full-size verandas; and 22 French Balcony Staterooms. Additionally, all Longships have green upgrades, such as onboard solar panels and organic herb gardens, and energy-efficient hybrid engines that also reduce vibrations for a remarkably smooth ride.

New ships for the Elbe River in 2015

Viking’s two additional ships on order for 2015 will be designed specifically for the company’s Elegant Elbe itinerary. As a result of high customer demand, the two new ships will join the recently refurbished Viking Schumann and Viking Fontane, doubling the company’s capacity on the Elbe River in 2015. Hosting 98 guests in 49 staterooms, sister ships Viking Astrild and Viking Beyla will be the newest and most modern ships sailing the Elbe River. Smaller than Viking Longships, with customized hulls and engines specially designed to navigate this unique river, these ships will tout many of the same popular features – including an Aquavit Terrace, a wide variety of stateroom choices, hotel-style beds, energy-efficient hybrid engines, onboard solar panels and an organic herb garden, as well as Viking’s signature Scandinavian design aesthetic.

A 10-day cruisetour with hotel stays in Berlin and Prague, Elegant Elbe is Viking’s only itinerary offering the unique opportunity to sail through eastern Germany. Featuring stops in Magdeburg, Wittenberg and Dresden, this itinerary offers the quintessential blend of urban culture, history and scenic cruising – including sailing past the cliffs of Germany’s “Saxon Switzerland.” It also includes visits to six UNESCO World Heritage sites.

New itineraries for 2015

Viking will also introduce two new itineraries in 2015, both of which showcase scenic treasures along the Rhine River during the springtime. Details of the itineraries include:

– Legends of the Rhine - This 8-day journey between Amsterdam and Frankfurt provides a window into some of the historic eras and events that have shaped northern Europe. Cruise through the Middle Rhine Valley, lined with dozens of medieval castles, and take walking tours of castles and cobbled streets. Marvel at the soaring carved interiors and stained-glass windows of Cologne’s iconic Gothic cathedral, and sample the local beers. Stop in Remagen, the site of World War II’s Operation Market Garden, and Nijmegen for a guided visit to the Overloon War and Resistance Museum. Spend a full day enjoying the delightful Golden Age city of Amsterdam, including a canal boat tour. Prices start at $2,356 per person, with 2015 departure dates in April and May.

– Rhine Rhapsody - On this unique new cruisetour, spend 10 days amidst the timeless elegance of Paris and the breathtaking scenery along the Rhine, Main and Moselle Rivers. Take a guided tour of the French capital to see some of its historic locations; then spend some time exploring its neighborhoods, museums and cafés. Scenic cruising takes you to the heart of smaller European towns like Trier, Rüdesheim and Cochem, where there is so much to discover, right through the Rhine Valley, famous for its many riverside castles. Stop in Strasbourg, the perfect marriage of French and German cultures (and cuisines), and explore the market squares of Basel’s charming Old Town area. Prices start at $2,906 per person, with 2015 departure dates in April and May.

The expansion of Viking’s fleet comes as a response to increased traveler demand for destination-focused cruises. In addition to the new Viking Longships and new vessels in Portugal, the company’s first ocean ship, the 930-passenger Viking Star, is currently under construction and will set sail in early 2015.