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Royal Caribbean Increases Profits in Q2

Jul 25, 2013 8:50 am

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Royal Caribbean’s full-year guidance has taken a hit due in part to “a modest reduction in expectations for the Caribbean,” as well as ongoing discounting.

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Royal Caribbean Cruises Ltd., the world’s second largest cruise line, on Thursday posted second-quarter net income of $24.7 million, reversing a year-ago loss, helped by higher revenue from tickets and sales of on-board items.

For the three-month period ended in June, the company’s profit amounted to 11 cents per share and compared with a loss of $3.7 million, or 2 cents per share, in the same quarter of 2012. Excluding one-time charges, Royal Caribbean posted adjusted profit of 23 cents per share for the recent quarter.

Revenue rose 3 percent to $1.88 billion.

Analysts, on average, expected 8 cents per share on $1.9 billion in revenue, according to FactSet.

Royal Caribbean credited the better-than-expected profit to its cost-control efforts. In addition ticket revenue rose 3 percent to $1.37 billion, while on-board and other revenue rose 6 percent to $516.1 million.

The company projected a third-quarter profit of $1.60 to $1.70 per share. The outlook included a charge of 5 cents per share related to a fire. Analysts, who usually exclude one-time charges, expect $1.79 per share.

For the full year, the company expects to earn between $2.20 and $2.30 per share. Analysts expect $2.37 per share.

Royal Caribbean shares rose 55 cents to $36.92 in morning trading.

Copyright (2013) Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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