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Royal Caribbean
🇺🇸 NYSE:RCL
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•
Dec 31, 2022

Royal Caribbean Q4 2022 Earnings Report

Royal Caribbean Group reported Q4 2022 results, exceeding guidance due to better pricing, strong onboard spend, favorable timing of operating costs, and lower interest expense.

Key Takeaways

Royal Caribbean Group reported a net loss of $(500.2) million for Q4 2022, with an adjusted net loss of $(284.9) million. Total revenues for the quarter were $2.6 billion. Load factors were in line with guidance at 95%, with Caribbean sailings reaching 100%. The company is experiencing a record-breaking WAVE season, with booking volumes significantly higher than in 2019.

Q4 2022 Loss per Share was $(1.96), and Adjusted Loss per Share was $(1.12), exceeding company guidance.

Total revenues for Q4 2022 reached $2.6 billion.

Load Factors for Q4 2022 were 95%, with Caribbean sailings at 100%.

The company is experiencing a record-breaking WAVE season, with booking positions approaching previous record highs at higher prices.

Total Revenue
$2.6B
Previous year: $982M
+165.1%
EPS
-$1.12
Previous year: -$4.78
-76.6%
Occupancy
95%
Previous year: 59.3%
+60.2%
Gross Profit
$822M
Previous year: -$153M
-636.1%
Cash and Equivalents
$1.94B
Previous year: $2.7B
-28.4%
Free Cash Flow
$410M
Previous year: -$780M
-152.5%
Total Assets
$33.8B
Previous year: $32.3B
+4.7%

Royal Caribbean

Royal Caribbean

Royal Caribbean Revenue by Segment

Forward Guidance

The company expects Net Yields to increase 2.5% to 4.5% in both as-reported and in Constant Currency versus 2019. Adjusted Earnings per Share are expected to be in the range of $3.00 to $3.60 for the full year 2023.

Positive Outlook

  • The company is experiencing a record-breaking WAVE season, driven by strong demand.
  • 2023 cumulative booked position remains well within historical ranges for all quarters and at record rates.
  • North America based itineraries are booked in line with 2019 for the full year, and ahead for the second quarter through the fourth quarter.
  • Net Yields are expected to increase 2.5% to 4.5% in both as-reported and in Constant Currency versus 2019.
  • The company expects to exceed prior record Adjusted EBITDA, achieved in 2019.

Challenges Ahead

  • Net Cruise Costs (NCC), excluding Fuel, per APCD expected to increase 4.5% to 5.5% as-reported and 4.75% to 5.75% in Constant Currency compared to 2019.
  • Includes approximately 210 basis points from lingering transitional costs (e.g. crew movement) and additional structural costs (e.g. full-year operations of Perfect Day at CocoCay and the new Galveston terminal).
  • The company recorded a loss contingency of $130 million in the fourth quarter related to a Helms-Burton Act claim.
  • Adjusted Loss per Share is expected to be in the range of $(0.65) – $(0.85) for Q1 2023.
  • NCC, excluding Fuel, per APCD is expected to increase approximately 8.3% as-reported and approximately 8.5% in Constant Currency, compared to 2019 for Q1 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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