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Dec 31, 2023
Royal Caribbean Q4 2023 Earnings Report
Royal Caribbean's Q4 2023 earnings were driven by strong demand and enhanced margins.
Key Takeaways
Royal Caribbean Group reported strong Q4 2023 results, with net income of $0.3 billion, or $1.06 per share, and adjusted net income of $0.3 billion, or $1.25 per share. Total revenues reached $3.3 billion, and adjusted EBITDA was $1.0 billion. The company is optimistic about 2024, expecting record earnings.
Net income for Q4 2023 was $0.3 billion, or $1.06 per share, compared to a net loss of $(0.5) billion, or $(1.96) per share, for the same period in the prior year.
Adjusted net income was $0.3 billion, or $1.25 per share, for Q4 2023, compared to an adjusted net loss of $(0.3) billion, or $(1.12) per share, for the same period in the prior year.
Total revenues for the quarter were $3.3 billion, and adjusted EBITDA was $1.0 billion.
Load factor for the quarter was 105%.
Royal Caribbean
Royal Caribbean
Royal Caribbean Revenue by Segment
Revenue by Segment
Passenger Ticket Revenue
CapyFin.comOnboard and Other Revenue
CapyFin.com Forward Guidance
The company expects first quarter Adjusted EPS to be in the range of $1.10 to $1.20 and Adjusted EPS in 2024 are expected to be $9.50 - $9.70.
Positive Outlook
- WAVE season is off to a record start.
- Booked load factors and rates are higher than all prior years.
- Net Yields are expected to increase 5.25% to 7.25% in Constant Currency (5.30% to 7.30% as-reported), compared to 2023.
- Adjusted EPS is expected to grow 40% year over year and be in the range of $9.50 to $9.70.
- The company expects to achieve two of its Trifecta goals in 2024: triple digit EBITDA per APCD and ROIC in the teens, one year earlier than prior expectations.
Challenges Ahead
- NCC, excluding Fuel, per APCD is expected to increase 3.75% to 4.25% in Constant Currency (3.80% to 4.30% as-reported) compared to 2023, and include 315 bps of costs related to increased drydock days and the new operations of Hideaway Beach at Perfect Day at CocoCay.
- First Quarter 2024 Net Cruise Costs per APCD vs. 2023 4.60% to 5.10%
- First Quarter 2024 Net Cruise Costs per APCD ex. Fuel vs. 2023 7.20% to 7.70%
- Full Year 2024 Net Cruise Costs per APCD vs. 2023 2.0% to 2.50%
- Full Year 2024 Net Cruise Costs per APCD ex. Fuel vs. 2023 3.80% to 4.30%
Revenue & Expenses
Visualization of income flow from segment revenue to net income