NORWEGIAN Cruise Line Holdings (NCLH) reported a strong second quarter overnight, but forecasted a downbeat Q3 profit, as elevated costs are expected to offset gains from robust demand and higher fares. NCLH’s second quarter revenue rose to US$2.21 billion, above estimates of US$2.17 billion. The company met or exceeded guidance...
NORWEGIAN Cruise Line Holdings (NCLH) reported a strong second quarter overnight, but forecasted a downbeat Q3 profit, as elevated costs are expected to offset gains from robust demand and higher fares.
NCLH’s second quarter revenue rose to US$2.21 billion, above estimates of US$2.17 billion.
The company met or exceeded guidance for all key metrics during the quarter, improving occupancy to approximately 105% for the period, reflecting the completion of its phased ramp-up.
NCLH’s cumulative booked position for the remainder of the year continues to be at record levels and at higher pricing, remaining within its optimal booked position of approximately 60-65% on a 12-month basis.
Advance ticket sales balance increased versus the prior quarter reaching a record US$3.5 billion, approximately US$167 million higher than prior quarter.
However NCLH’s annual adjusted EBITDA did not benefit quite as strongly as expected, with the company forecasting between US$1.85 bllion and US$1.95 billion, up from a floor of US$1.8 billion.
NCLH has been bogged down by inflation and higher labour costs, despite a sequential improvement in operating costs, with the company’s total cruise operating expenses in the Jun quarter jumping 29% to US$1.38 billion.
The company is reducing costs by re-engineering food menu items and optimising crew movements.
