Royal Caribbean Q1 2023 Earnings Report
Key Takeaways
Royal Caribbean Group reported a first quarter Loss per Share of $(0.19) and Adjusted Loss per Share of $(0.23), which was significantly better than the company's guidance. The company is increasing its 2023 Adjusted Earnings per Share guidance to $4.40 – $4.80 due to a record-breaking WAVE season and accelerating demand.
Stronger than anticipated demand has led to a record-breaking and extended WAVE season, translating into a robust booking environment with higher load factors and higher prices.
Load factors in the first quarter were 102%.
Total revenues were $2.9 billion, Net Loss was $(47.9) million or $(0.19) per share, and Adjusted Net Loss was $(58.9) million or $(0.23) per share.
Customer deposit balance was at a record $5.3 billion as of March 31, 2023.
Royal Caribbean
Royal Caribbean
Royal Caribbean Revenue by Segment
Forward Guidance
Royal Caribbean Group provided the following guidance for the second quarter and full year 2023.
Positive Outlook
- Net Yields are expected to increase 9.6% to 10.1% as-reported and 10.1% to 10.6% in Constant-Currency, compared to the second quarter of 2019.
- NCC, excluding Fuel, per APCD is expected to increase approximately 8.6% as-reported and approximately 8.9% in Constant-Currency, compared to second quarter 2019.
- Adjusted Earnings per Share for the second quarter are expected to be in the range of $1.50 to $1.60 per share.
- Net Yields are expected to increase 6.25% to 7.25% as-reported and 6.75% to 7.75% in Constant-Currency, compared to 2019 for full year 2023.
- NCC, excluding Fuel, per APCD is expected to increase 5.2% to 6.2% as-reported and 5.5% to 6.5% in Constant-Currency, compared to 2019 for full year 2023.
Challenges Ahead
- Net Cruise Costs per APCD vs. 2019 11.8% to 12.8%
- Net Cruise Costs per APCD vs. 2019 10.0% to 11.0%
- Depreciation and amortization $360 to $370 million
- Net Interest, excluding loss on extinguishment of debt $305 to $315 million
- Fuel Expenses Approx. $276 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income