With a 55-per-cent rise in earnings, Royal Caribbean is looking forward to 2011
Royal Caribbean Cruises, which operates Oasis of the Seas, the world’s largest cruise liner, has announced a 55-per-cent year-over-year increase in third-quarter earnings, providing higher earnings guidance for the full year 2010.
The company’s net income for the third quarter of 2010 was $356.8 million, or $1.64 per share, compared to net income of $230.4 million, or $1.07 per share, in the third quarter of 2009.
Revenues improved to $2.1 billion in the third quarter of 2010 compared to $1.8 billion in the third quarter of 2009, as a result of capacity increases and yield improvements.
The company reported that the current revenue environment has remained stable and continues to be characterised as slowly improving. Additionally, booked load factors and average per diems continue to run ahead of the same time last year for the remainder of the year.
Fourth quarter 2010 net yields are expected to improve approximately five per cent on a constant currency basis, or approximately four to five per cent on an as-reported basis. Full year 2010 net yields are expected to improve approximately four to five per cent on both constant currency and as-reported bases.
Looking to 2011, while recognising it is still too early to provide definitive guidance, the company reported that early indications are encouraging. At current exchange rates, the company expects full year 2011 net yields to increase by a similar proportion to 2010.
The company also noted that its business is seasonal and that the biggest yield declines caused by the recession impacted the second and third quarters more than they impacted the first and fourth quarters. As a result, it expects that the most meaningful yield recovery in 2011 will occur correspondingly during those same two summer quarters.
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Global brand: Royal Caribbean has 22 |
“We continue to characterise demand for our brands as steady and solid and the strength of our third quarter results is certainly a validation of that,” said Richard Fain, chairman and chief executive officer. “Profitability momentum moving into 2011 is also quite strong with our newest vessels performing exceptionally well and our management team controlling costs very effectively. The economy is still tough, but even facing such headwinds our outlook is remarkably encouraging.”
And as the company marks its 40th anniversary, Royal Caribbean International has announced the revitalsation of Radiance of the Seas and Splendour of the Seas in 2011, in addition to enhancements planned aboard Oasis of the Seas and the already announced drydocks for Liberty of the Seas and Freedom of the Seas. The scheduled revitalisations and enhancements of the five ships reflect the Royal Advantage, the cruise line’s commitment to provide guests with the industry’s most innovative cruise ships, exciting destinations and superior Gold Anchor Service to help create an extraordinary cruise vacation.
“The Royal Advantage is our commitment to continuously contemporise and innovate our vacation offering and deliver the highest standards of guest satisfaction through our Gold Anchor Service,” said Betsy O’Rourke, senior vice president of marketing, Royal Caribbean International. “The planned enhancements of five ships in 2011 will help expand some of the most successful programmes that we have launched on our incredible Oasis-class ships to deliver these new ‘wows’ to more ships in our fleet. With November 7 marking our 40th anniversary, we are proud to continue to deliver more to see, do and love than ever before to our guests.”
In mid-2011, Radiance of the Seas will begin its revitalisation with the addition of new speciality restaurants including the Samba Grill Brazilian Steakhouse, Mexican-themed Rita’s Cantina and the Italian Giovanni’s Table, as well as the Park Café deli-style restaurant and the exclusive Chef’s Table dining experience. Other enhancements to the ship will include a new Diamond Lounge for Crown & Anchor Society loyalty programme members, as well as the Royal Babies and Tots Nursery, interactive flat-panel televisions in all staterooms and WiFi throughout the ship. Splendour of the Seas will receive two new speciality restaurants and the Park Café, the Royal Babies and Tots Nursery, a Diamond and Concierge Lounge, flat-panel televisions and WiFi throughout the ship.
Additionally, there will be new balcony staterooms added, select stateroom enhancements and upgrades to public areas including a refreshed Windjammer Marketplace.
Royal Caribbean International is a global cruise brand with 22 ships currently in service. The line also offers unique cruise tour land packages in Alaska, Canada, Dubai, Europe and Australia and New Zealand.