Norwegian Cruise Line Q4 2023 Earnings Report
Key Takeaways
Norwegian Cruise Line Holdings reported a net loss of $(106.5) million for Q4 2023, with an EPS of $(0.25). However, the company's Adjusted EBITDA was approximately $359.6 million, driven by solid revenue performance and lower Adjusted Net Cruise Cost Excluding Fuel. Occupancy reached 99.2% despite cancellations and redirections due to the conflict in Israel and the Red Sea.
Occupancy was 99.2% for the fourth quarter of 2023.
Total revenue per Passenger Cruise Day up approximately 21%, with capacity growth of 17% compared to 2019.
Gross margin per Capacity Day was approximately $79 in the quarter.
Adjusted Net Cruise Costs excluding Fuel per Capacity Day in the fourth quarter of 2023 was approximately $151.
Norwegian Cruise Line
Norwegian Cruise Line
Forward Guidance
The Company expects Net Yield growth to be strong at approximately 5.4% on a Constant Currency basis compared to 2023. Full year Adjusted Net Cruise Cost Excluding Fuel per Capacity Day is expected to be approximately $159.
Positive Outlook
- Exceptional demand for Norwegian Cruise Line.
- Oceania Cruises and Regent Seven Seas Cruises also experiencing strong demand.
- Net Yield growth to be strong at approximately 5.4% on a Constant Currency basis compared to 2023.
Challenges Ahead
- Voyages redeployed due to the conflicts in the Middle East and Red Sea.
- Full year Adjusted Net Cruise Cost Excluding Fuel per Capacity Day is expected to be approximately $159, increasing approximately 3.4% in Constant Currency.
- Approximately 325 basis points impact of increased Dry-dock days and related costs in the year.