Norwegian Cruise Line Q1 2024 Earnings Report
Key Takeaways
Norwegian Cruise Line Holdings reported strong Q1 2024 results with a 20% increase in revenue year-over-year, driven by record bookings and robust onboard revenue. The company exceeded its Q1 guidance and raised its full-year guidance, reflecting continued strong demand and successful margin enhancement initiatives. Occupancy reached 104.6%, and the company is making progress on deleveraging efforts, reducing Net Leverage by a full turn compared to the end of 2023.
Revenue increased by 20% year-over-year due to strong demand and record bookings.
Onboard revenue per Capacity Day rose by 11% compared to 2023.
Occupancy for Q1 2024 was 104.6%, in line with guidance.
The company increased its full year Adjusted EBITDA guidance by $50 million to $2.25 billion and Adjusted EPS guidance was increased by $0.09 to approximately $1.32.
Norwegian Cruise Line
Norwegian Cruise Line
Forward Guidance
The Company increased its Net Yield guidance by 100 basis points from prior guidance to growth of approximately 6.4% from approximately 5.4% on a Constant Currency basis compared to 2023.
Positive Outlook
- Exceptional demand across all three brands
- Adjusted EBITDA guidance increased by $50 million to $2.25 billion
- Adjusted EPS guidance was increased by $0.09 to approximately $1.32
- Full year 2024 Occupancy is expected to average 105.1%
- Pricing growth in the first quarter was also strong with total revenue per Passenger Cruise Day up approximately 8%
Challenges Ahead
- Impact from the redeployed voyages related to the Middle East and Red Sea.
- Includes an approximate 300 basis point impact from Dry-dock days and related costs in the year.
- The increase in interest expense reflects higher losses in 2024 from extinguishment of debt and debt modification costs
- Total debt of $13.7 billion and Net Debt of $13.2 billion
- Net Leverage of 6.3x