News

Norwegian enjoys highest booked revenue and highest yields ever

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 18 February 2015 18 February 2015

Norwegian Cruise Line Holdings, the Miami based company that acquired Prestige cruise Holdings last year, is optimistic about the future and says it enjoys record booked revenue and yields, despite softness in the Caribbean for the start of the year.

“Looking to the balance of the year, the outlook is much more encouraging with solid pricing and booking trends across all markets. While 2015 is primarily an organic year, we expect to deliver robust Adjusted EPS growth of approximately 23%,” said Frank Del Rio, president and CEO, in a statement.

“Until recently, our booked revenue had been on par with prior year; however, the last three weeks of this Wave season has seen a significant acceleration in booking volume. Norwegian Escape is in a better booked position than her last two predecessor sister ships, Norwegian Breakaway and Getaway, and Seven Seas Explorer has set both single day and single week booking records at the Regent brand.”

“At year end, and as of today, the company has more booked revenue and the highest net yields on future sailings than ever before, including full year 2015 and 2016,” said Del Rio.

“As anticipated, the combined impacts of the challenging Caribbean capacity and pricing environment along with a normalized winter season for the Norwegian brand, which last year included an extended bareboat charter of Norwegian Jade for the Sochi Olympics, results in tempered expectations for the first quarter.”

Norwegian group reports final quarter loss as expenses soar

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 18 February 2015 18 February 2015

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.

TUI to become “a leading cruise operator in Europe in the foreseeable future”

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 17 February 2015 17 February 2015

TUI AG, the world’s largest tour operator, says it wants to integrate closer its German and British cruise operations, with an aim to become a leading operator in Europe.

“The goal is to expand TUI’s cruise activities so as to become a leading cruise operator in Europe in the foreseeable future,” the company said in a statement.

“The five ships of the Thomson Cruises fleet, operating in the British market, are to be completely modernised in the next few years. At the same time, Thomson Cruises is to cooperate more closely with TUI Cruises,” it said.

TUI Cruises, which TUI AG owns jointly with Royal Caribbean Cruises Ltd. (RCCL) is to continue its strong growth. The second newbuild of the fleet, Mein Schiff 4, will be commissioned in June.

“It has been announced that Hapag-Lloyd Kreuzfahrten is expected to break even in the current financial year 2014/15. The Group expects to be able to operate Hapag-Lloyd at a very attractive earnings level in the long term, too. Contributing to this will be the acquisition of Europa 2 in January and the corresponding termination of the charter contract,” the company said.