Royal Caribbean Cruises ended 2018 with record financial results, despite the unfavourable impact from fuel and currency costs.
US GAAP net income for the year was $1.8 bill or $8.56 per share and adjusted net income was $1.9 bill or $8.86 per share, versus US GAAP and adjusted net income of $1.6 bill or $7.53 per share for 2017.
The 2018 result equated to a 17.5% year-over-year growth in adjusted earnings per share, RCC said. This was achieved despite the impact of currency and fuel, which negatively affected earnings by around $123 mill.
Strong demand for its core products, better on board revenues and the consolidation from Silversea’s operations, drove the year-over-year earnings increase, the company said.
In July, 2018, Royal Caribbean finalised the acquisition of a two-thirds stake in Silversea.
“This year our teams achieved record financial results while introducing four new vessels, acquiring Silversea Cruises, inaugurating two stunning cruise terminals and implementing Excalibur on about half of our fleet,” Richard Fain, chairman and CEO, commented.“By any measure, 2018 was a particularly stellar year, and the strong Wave makes us optimistic about 2019 as well.”
For the fourth quarter of 2018, US GAAP net income was $315.7 mill and adjusted net income was $322.1 mill, compared to US GAAP and adjusted net income of $288 mill reported for 4Q17.
For this year, the company forecasts full-year adjusted earnings to be in the range of $9.75 to $10 per share. Royal Caribbean said its booked position for 2019 was better than last year’s record high and at higher rates. Demand was strong across all quarters.
Moreover, the company expects a net yield increase in the range of 6.5% to 8.5% in constant currency and 6% to 8% as reported for the full year.
“Our yield outlook for 2019 is very encouraging,” Jason Liberty, executive vice president and CFO, said. “Demand for our brands continues to accelerate and we are well positioned for another year of double-digit growth in our earnings per share.”
Royal Caribbean plans to introduce ‘Celebrity Flora’, the first ship designed for the Galapagos, in May, 2019 and ‘Spectrum of the Seas’ in the China market in June, 2019. These new ships will also contribute to the 2019 yield growth, the cruise company said.