News Column

Norwegian reports $112M in second-quarter profit

July 30, 2014

By Arlene Satchell, Sun Sentinel

July 30--Miami-based Norwegian Cruise Line said earnings doubled in the second quarter, driven in part by capacity and revenue gains from having its two newest ships operating in the full period.

Quarterly net income was $111.6 million or 54 cents a share, the cruise line reported in an earnings release late Monday.

That compared to a net loss of $8.8 million -- or 4 cents per share -- in the 2013 period. Adjusted earnings were 58 cents up from 29 cents last year. Revenue climbed nearly 19 percent to $765.9 million.

"This quarter marks the first full quarter with both Breakaway-class ships in operation," said Kevin Sheehan, president and chief executive officer, in a statement. "Along with Norwegian Epic, these newer, premium, earnings-rich ships now comprise a little over a third of our capacity and contributed to the doubling of earnings in the quarter."

In January, the cruise operator added the second of its 4,000-passenger Breakaway-class ships -- Norwegian Getaway -- to its fleet. Since then Getaway, which sails on Caribbean itineraries from Port Miami, is leading Norwegian's fleet in guest satisfaction, Sheehan told analysts Tuesday during an earnings call.

In April 2013, Norwegian took delivery of its sister ship Norwegian Breakaway, which is based in New York for Caribbean sailings.

During the quarter, passenger ticket revenue rose 17.5 percent to $538 million, while onboard and other revenue increased 22 percent to $227.8 million.

Looking ahead to the third quarter Norwegian is forecasting adjusted earnings per share in the range of $1.05 to $1.10, and for full-year 2014 -- $2.20 to $2.35.

Norwegian shares rose 78 cents or 2.37 percent to $33.53 in NASDAQ trading Tuesday., 954-356-4209 or Twitter@TheSatchreport.


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Source: South Florida Sun Sentinel (FL)

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