Norwegian Cruise Line Holdings (NCLH) generated GAAP net income of $98.8 mill or EPS of $0.43, for the fourth quarter of last year, compared to $72.2 mill or $0.32 in 4Q16.
Adjusted net income was $156.8 mill – adjusted EPS was $0.68, compared to $127.7 mill or $0.56, respectively in 2016.
Revenue increased 11.1% to $1.2 bill, compared to $1.1 bill in 2016. Adjusted net revenue increased 12.6% to $969.7 mill, compared to $861.6 mill in 2016.
These increases were primarily attributed to the addition of ‘Norwegian Joy’ to the fleet, along with strong organic pricing growth across all core markets. Gross yield increased 2.5% and adjusted net yield increased 3.4% on a constant currency basis and 3.9% on an as reported basis.
For the full year, GAAP net income was $759.9 mill or EPS of $3.31, compared to $633.1 mill or $2.78, respectively in 2016. The company generated adjusted net income of $907.7 mill or adjusted EPS of $3.96, compared to $776.3 mill or $3.41 in 2016, respectively despite unprecedented weather-related problems experienced in 2017.
This strong growth follows a 49.5% increase in GAAP EPS and an 18.4% increase in adjusted EPS from 2015 to 2016, respectively further demonstrating the company’s continued underlying growth, NCLH said in the results roundup.
Revenue increased 10.7% to $5.4 bill, compared to $4.9 bill in 2016. Net revenue increased 11.2% to $4.2 bill, compared to $3.8 bill in 2016. These increases were primarily attributed to a 6% increase in capacity days, due to the delivery of ‘Norwegian Joy’ in April, 2017, Regent’s ‘Seven Seas Explorer’ in June, 2016 and Oceania Cruises’ ‘Sirena’ in April, 2016, plus strong organic pricing growth across all core markets.
Gross yield increased 4.4% and adjusted net yield increased 5% on a constant currency basis and 4.8% on an as reported basis.
“The continued strong global demand for our portfolio of brands will enable us to further grow revenue, resulting in our sixth consecutive year of net yield growth. This, coupled with the benefit of the launch of ‘Norwegian Bliss’ and a continued focus on costs, will drive 2018 earnings to record highs,” said Wendy Beck, outgoing NCLH executive vice president and CFO.
“The strong, record performance we delivered in 2017 was the perfect end to a historic year, as we celebrate the five year anniversary of our initial public offering. Over the last five years we have continued our track record of consistent financial performance with a more than sixfold increase in EPS, a doubling of revenue and the expansion of adjusted ROIC to double-digit levels,” said Frank Del Rio, NCLH’s president and CEO. “It has been a remarkable journey for our company with more major milestones to come and an amazing trajectory of profit growth for 2018 and beyond.
“Our solid revenue and earnings performance will continue in 2018, having entered the year in the best booked position in our company’s history with pricing above prior year across all three of our brands,” he said.
In December, NCLH announced the transfer of its ordinary shares from the Nasdaq Global Select Market (Nasdaq) to the New York Stock Exchange (NYSE). The company began trading on the NYSE on 19th December, 2017.
NCL also announced the name of its 17th and largest ship, ‘Norwegian Encore’, scheduled for delivery from Meyer Werft in Autumn, 2019. ‘Norwegian Encore’ will be the line’s fourth and final ship in the ‘Breakaway Plus’ class, the most successful class in the brand’s history, the company said.
Regent Seven Seas Cruises also announced the name of its fifth ship – ‘Seven Seas Splendor’, scheduled for delivery in the first quarter of 2020. She will be the second ‘Explorer class’ ship.