Royal Caribbean reports a “better than expected” quarter

Written by Nick Blenkey
Royal Caribbean logo on ship


Cruise giant Royal Caribbean Group (NYSE: RCL) today reported third quarter results that it says were “better than expected and above guidance for the quarter mainly due to higher load factors from strong close-in demand, further improvement in onboard revenue and better cost performance.”

The company reported net income for the third quarter of $33.0 million or $0.13 per share compared to a net loss of $1.4billion or $(5.59) per share for the same period in the prior year. The company also reported adjusted net income of $65.8 million or $0.26 per share for the third quarter compared to an adjusted net Loss of $1.2 billion or $4.91) per share for the same period in the prior year.

Royal Caribbean also unveiled what it calls the “Trifecta Program,” a three-year financial performance initiative setting three main goals to be achieved by the end of 2025:

  • Triple Digit Adjusted EBITDA per APCD, to exceed prior record Adjusted EBITDA per APCD of $87 in 2019.
  • Double Digit Adjusted Earnings per Share to exceed the prior record Adjusted Earnings per Share of $9.54 in 2019.
  • Return on Invested Capital (“ROIC”) in the teens to exceed the prior record ROIC of 10.5% in 2019 through optimizing capital allocation and enhancing operating income.

…all while returning to an investment grade profile and reducing carbon intensity by double digits compared to 2019.

“Last quarter’s better than expected performance was a result of the continued robust demand environment and strong execution by our teams,” said Jason Liberty, president and chief executive officer of Royal Caribbean Group. “The combination of our leading global brands, the best and most innovative fleet in the industry, our nimble global sourcing platform and the very best people have delivered a successful return of our business to full operations and positions us well to deliver record yields and adjusted EBITDA in 2023.”

Investors seem to like all this. The company’s share was up by around 7% by mid-afternoon today.

Read the full Royal Caribbean release here

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