Royal Caribbean Group posted better-than-expected fourth-quarter profits and predicted record earnings for 2024, propelled in part by the introduction of the world’s biggest passenger vessel.
The Miami cruise giant said on Thursday that it logged $278m in profits for the final three months of last year, reversing a $500m loss in the same period of 2022.
That translated into adjusted earnings per share of $1.25, which beat the company’s own expectations and was higher than the average analyst bet of $1.13 per share, according to data from Yahoo Finance.
“2023 was an exceptional year, propelled by unmatched demand for our brands from new and loyal guests,” chief executive Jason Liberty said in the earnings statement.
But attention will no doubt focus on New York-listed Royal Caribbean’s expectations for record profits in 2024. The world’s second-largest cruise ship owner predicted that it will lock away adjusted earnings per share of $9.50-$9.70.
That is far better than Wall Street expectations; estimates by analysts polled by Yahoo Finance average $9.19 per share and only reach as high as $9.55.
The company said sales during the “Wave” booking season, which dominates cruise sales at the beginning of each year, represent a “record start” to 2024, with a boost from the introduction of the 5,610-berth Icon of the Seas (built 2023), the world’s biggest cruise ship.
| Q4 2023 | Q4 2022 | 2023 | 2022 | |
| Revenue | $3.33bn | $2.6bn | $13.9bn | $8.84bn |
| Cruise operating expenses | $1.89bn | $1.78bn | $7.78bn | $6.62bn |
| Net income attributable to Royal Caribbean | $278m | -$500m | $1.69bn | -$2.16bn |
| Adjusted earnings per share | $1.25 | -$1.12 | $6.77 | -$7.50 |
Royal Caribbean expects to achieve triple-digit Ebitda per available passenger cruise day and return on invested capital “in the teens” this year — two of three goals for 2025.
“With the wind in our sails and record-breaking bookings, 2024 is poised to be another robust year, and we expect to achieve two of our Trifecta goals one year early,” Liberty said.
Royal Caribbean delivered $3.33bn in revenue in the quarter, up from $2.6bn a year earlier.
Cruise operating expenses grew to $1.89bn from $1.78bn.
For the full year, Royal Caribbean locked in a profit of nearly $1.7bn, turning around a $2.16bn loss in 2022, which saw it climb to full capacity in the wake of the pandemic.
Annual revenue rocketed to $13.9bn, up from $8.84bn in 2022.
