Norwegian Cruise Lines earns record Q2 revenue
Contributor since / Followers
Tatiana Dyuvbanova/iStock Editorial via Getty Images
Strong demand for cruises and increased efficiency drove record Q2 sales for Norwegian Cruise Line (NYSE:NCLH) and led the company to increase their guidance for 2024 for a third time.
“The momentum we are garnering from strong yield growth, disciplined cost management and the initiatives that comprise our Charting the Course strategy further bolsters our confidence in achieving our previously announced 2026 financial and sustainability targets,” CEO Harry Sommer said.
The cruise operator continues to experience strong consumer demand as the majority of new bookings are pivoting to 2025 sailings. As a result, the company remains at the upper range of its optimal booked position on a 12-month forward basis. Full year 2024 occupancy is expected to average 105.2%, slightly above prior guidance.
Other metrics were equally strong with gross margin per capacity day up 7% to $124, net yield growth was up ~6.3%, advance ticket sales balance set an all-time high of $3.9B, up 11% year-over-year.
For 2024, the company increased its net yield guidance by 100 basis points to growth of ~8.2%, driven by strong demand across all three Norwegian brands and itineraries. Adjusted net cruise cost excluding fuel per capacity day remains unchanged at ~$159M.
Adjusted operational EBITDA margin for FY24 is expected to increase to 34.5% and adjusted EBITDA guidance was increased by $50M to $2.35B. Adjusted profit guidance was raised to $1.52 per share from $1.42 per share, above the Street’s consensus of $1.45 per share.
For Q3, Norwegian Cruise Line (NCLH) expects to earn an adjusted profit of $0.92 per share, a penny better than the consensus estimate.
For the most recent quarter, the company’s profitability improved to $0.40 per share from $0.30 per share in the same quarter last year, beating estimates by 6 cents. Sales were up 8.6% to $2.4B, above expectations by $20M. Adjusted EBITDA increased 14% YoY and beat guidance by more than $30M.
Shares were up 4% in Wednesday’s premarket trading.