Norwegian Cruise Line Q2 2024 Earnings Report
Key Takeaways
Norwegian Cruise Line Holdings reported strong second-quarter 2024 financial results, with revenue up approximately 8% over the prior year to record levels. The company exceeded its Q2 guidance and raised its full-year guidance for the third time. Occupancy was 105.9% for the second quarter of 2024.
Adjusted EPS is expected to grow approximately 120% compared to 2023.
Occupancy was 105.9% for the second quarter of 2024, slightly above guidance.
Net Yield growth was up approximately 6.3% versus 2023.
Advance ticket sales balance ended the second quarter of 2024 at an all-time record high of $3.9 billion, approximately 11% higher than the same period of 2023.
Norwegian Cruise Line
Norwegian Cruise Line
Forward Guidance
The Company raised its 2024 full-year guidance for key metrics resulting in expected Adjusted EPS growth of 120% versus 2023, while keeping our cost guidance for the year unchanged at flat to prior year
Positive Outlook
- Adjusted EPS to grow approximately 120% compared to 2023
- Net Yield guidance increased by 100 basis points from prior guidance to growth of approximately 8.2% from approximately 7.2% on a Constant Currency basis compared to 2023
- Adjusted EBITDA guidance increased by $50 million to $2.35 billion.
- Adjusted EPS guidance was increased by $0.11, or 8%, to approximately $1.53 from approximately $1.42.
- Full year 2024 Occupancy is expected to average 105.2%, slightly above prior guidance.
Challenges Ahead
- Adjusted Net Cruise Cost Excluding Fuel per Capacity Day would be essentially flat year-over-year, amounting to $155 in 2024 as reported and in Constant Currency.
- Full Year 2024 includes an approximate 300 basis point, or approximately $5, impact of increased Dry-dock days and related costs.
- Net newbuild-related capital expenditures for the second quarter of 2024 were approximately $60 million and are expected to be approximately $119 million for the third quarter of 2024.
- The Company had total debt of $13.4 billion and Net Debt of $12.8 billion as of June 30, 2024.
- Interest expense, net was $178.5 million in 2024 compared to $177.7 million in 2023.