RCL ups 2024 guidance due to higher demand

2024-03-01T19:13:49+00:00 March 1st, 2024|Finance|

Royal Caribbean Group (RCL) has provided an update on demand and also updated its 2024 guidance.

The company said that it continued to be very encouraged about the demand and pricing environment for 2024.

Since its most recent update on its fourth quarter 2023 earnings call, the wave booking season has exceeded initial expectations, with the first five weeks of the year resulting in the best wave booking weeks in the company’s history.

Bookings were significantly higher than during the same period last year, with the second half of the year up by more than the first half. For 2024.

All four quarters and all key products were booked ahead of the same time last year in both rate and volume. Consumer spending for on board purchases continued to exceed the previous years’, driven by greater participation at higher prices, indicating quality and healthy future demand.

“Since our last earnings call, robust demand for our vacation experiences has significantly exceeded our initial expectations,” said Jason Liberty, RCL P and CEO. “As a result, we are increasing our 2024 guidance on stronger revenue outlook, and we expect to achieve all Trifecta goals in 2024.

“ Trifecta marks an important milestone, as we remain intensely focused on delivering a lifetime of vacations and priceless memories for our guests while delivering exceptional long-term shareholder value,” he said.

As a result of the strong wave season, the company is increasing its 2024 adjusted EPS guidance by $0.40, compared to its February guidance to a full year, guidance of $9.90 to $10.10, driven by an increase in constant currency net yield growth of about 100 bps, compared to the February guidance.

About $0.15 of the full year increase in adjusted EPS was driven by an improved revenue outlook for the first quarter of 2024.

The company said that it now expected to achieve all Trifecta goals in 2024

RCL also announced that it has commenced a private offering of $1 bill aggregate principal amount of senior unsecured notes, due 2032..

The company intended to use the proceeds from the sale, together with cash on hand and/or borrowings under its revolving credit facilities, to redeem all of the outstanding 11.625% senior notes, due 2027 (including the paying of fees and expenses in connection with a redemption).