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Jun 30, 2024
Norwegian Cruise Line Q2 2024 Earnings Report
Norwegian Cruise Line's financial performance in Q2 2024 exceeded expectations, with revenue up ~8% year-over-year and full-year guidance raised for the third time.
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
Norwegian Cruise Line Revenue by Segment
Revenue by Segment
Passenger Ticket Revenue
CapyFin.comOnboard and Other Revenue
CapyFin.com 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income