Royal Caribbean Cruises Ltd.
CEO : Mr. Jason T. Liberty
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 165.1% YoY | -101.5% | -63.2% | 2023-02-07 |
Jason Liberty says,
Strong Book Position with Higher Rates
- Expected to have a lower load factor until spring, but still in a strong book position
- Rates are considerably higher than in 2019
Expectations for Exceeding EBITDA from 2019
- Forecast is achievable and based on strong visibility on revenue and cost management
- Expect to exceed EBITDA generated in 2019
Positive Outlook for 2023
- Thoughtful guidance and considerations for different markets and products
- Strong belief for 2023 and potential for better outcomes for the year
- Acceleration towards Trifecta seen as a positive trend
Michael Bayley says,
New Ships Driving Demand and Pricing
- Icon of the Seas has been the best-selling product in the history of Royal Caribbean’s business.
- Remarkable stats coming out of Icon, with the ultimate family townhouse already 55% sold for 2024 at an average price of $75,000 a week
- Icon is driving a great ’24 with healthy demand and pricing.
- The new ship class is the first time Royal Caribbean International has had a new class of ship in nine years, and the performance so far is delightful.
Q & A sessions,
Strong Demand Trends and Increased Bookings
- Strong WAVE trends across all brands, with elevated demand from North America and Europe
- Short close-in products and 3, 4, and 5-night products have seen acceleration
- Booking window is now within a couple of weeks of normal
- Demand for European consumers to go on a vacation experience is high despite impact of conflict and energy prices
Increased Capacity and Demand for CocoCay and Perfect Day
- CocoCay has been a huge success and has seen a significant increase in overall capacity
- Hideaway Beach will allow an additional 3,000 people to Perfect Day, bringing the capacity to approximately 13,000 people a day
- There is an appetite for other similar ventures in the future
Positive Outlook on Ticket and Onboard Revenue
- Ticket yields expected to continue and average revenue per day (APD) to increase
- Booking earlier is the main force behind the increase in onboard activity
- Frictionless acquisition experience through e-commerce is allowing customers to get the vacation they desire
Impact of Energy Prices and Conflicts
- The conflict in Ukraine and Russia has a deployment impact and limits deployment to the Baltics
- Impact of energy prices has been felt more by European consumers, but their desire to go on a vacation experience remains high
Continued Growth in China
- CocoCay and Perfect Day experiences have seen great demand and resilience as prices go up
- Hideaway Beach will accommodate additional 3,000 people and there is an appetite for more such ventures in the future
No bad stock 