Norwegian Cruise Line Holdings (NCLH) has reported GAAP net income of $103.2 mill or EPS of $0.45 for the first quarter of this year, compared to $61.9 mill or $0.27 in 1Q17.
NCLH generated adjusted net Income of $137.8 mill, or adjusted EPS of $0.60, compared to $91.2 mill or $0.40 in the previous year period.
Revenue increased 12.4% to $1.3 bill, compared to $1.2 bill in 2017. Net Revenue increased 13.1% to $1 bill, compared to $0.9 bill in 2017.
These increases were primarily attributed to strong organic pricing growth across all core markets along with an increase in capacity days, due to the addition of ‘Norwegian Joy’ to the fleet. Gross yield increased 1.4% and net yield by 1% on a constant currency basis and 2% on an as reported basis.
Total cruise operating expense increased 6.7% in 2018 compared to 2017, primarily due to an increase in capacity days. Gross cruise costs per capacity day decreased 1.5% due to a fall in maintenance and repairs including drydock expenses partially offset by an increase in marketing, general and administrative expenses.
Adjusted net cruise cost excluding fuel per capacity day decreased 2.7% on a constant currency basis and 2.1% on an as reported basis.
NCLH said that it expected to generate record earnings for this year and has increased its outlook, with adjusted EPS now expected to be in the range of $4.55 to $4.70.
“The year is off to an impressive start with yet another record quarter of earnings, which exceeded expectations,” said Frank Del Rio, NCLH’s president and CEO. “The 2018 wave season was stellar and has further strengthened our overall future booked position with load factor and pricing continuing to be well ahead of prior year for the remaining quarters of 2018 and throughout 2019.”
“The strong global demand for our portfolio of brands, which we experienced during 2017, has continued, as demonstrated by the successful, record-breaking launch of ‘Norwegian Bliss’, which entered the fleet as the best booked Norwegian Cruise Line newbuild in the history of our company,” said Mark Kempa, interim CFO. “While our primary focus continues to be to deliver to the low three times by year-end 2018, our recently announced $1 bill share re-purchase programme reflects our ongoing confidence in our financial position and the long-term strength of our business, as well as our commitment to provide meaningful capital returns to our shareholders.”
