Royal Caribbean Group: impressive 3. QRT results for 2024, increased full-year guidance
c: RCI Gropu
Royal Caribbean Group has reported impressive third-quarter results for 2024 and has increased its full-year guidance, reflecting strong performance and robust demand for its vacation experiences.
Financial Highlights
- Earnings per Share (EPS) of $4.21 and Adjusted EPS of $5.20, surpassing previous guidance.
- Total revenues of $4.9 billion, a significant increase from $4.16 billion in the same period last year.
- Net Income of $1.1 billion, or $4.21 per share, up from $1.0 billion, or $3.65 per share, in Q3 2023.
- Adjusted Net Income of $1.4 billion, or $5.20 per share, compared to $1.1 billion, or $3.85 per share, in the prior year.
- Adjusted EBITDA of $2.1 billion.
Key Performance Indicators
- Load factor in the third quarter reached 111%.
- Gross Margin Yields increased by 13.4% as-reported.
- Net Yields were up 7.9% in Constant Currency and as-reported.
Factors Contributing to Strong Performance
The significant increase in third-quarter revenues can be attributed to:
- Strong demand for cruise vacations, particularly for European and Alaskan itineraries.
- Higher pricing across key products.
- Increased onboard revenue and pre-cruise purchases.
- Robust last-minute bookings at higher prices.
Updated Guidance
Based on the strong Q3 results, Royal Caribbean Group has increased its full-year 2024 guidance:
- Adjusted EPS is now expected to be in the range of $11.57 - $11.62.
- The increase is driven by strong revenue performance in Q3 and higher pricing expectations for Q4.
Raises Dividend Thirty Eight Percent
The Board of Directors of Royal Caribbean Cruises Ltd. (NYSE: RCL) today declared a quarterly dividend of $0.55 per common share payable on January 13, 2025 to shareholders of record at the close of business on December 27, 2024. This increase reflects the company's continuing efforts to enhance shareholder returns.
Looking Ahead
Royal Caribbean Group anticipates continued strong performance:
- The company sees accelerating demand as it builds the business for 2024.
- Booked load factors are higher than all prior years and at higher rates.
- While still early in the planning process, the company anticipates earnings per share in 2025 to start with a $14 handle.
Royal Caribbean Group's exceptional third-quarter results and increased full-year expectations reflect the robust demand for its differentiated vacation experiences, positioning the company for continued strong financial performance in the coming years.