RCCL sees Q2 profits rise by a quarter

RCCL sees Q2 profits rise by a quarter

Royal Caribbean Cruises Limited saw second quarter profits rise by 26% and forecast that full year earnings will be almost 40% better than last year.

Adjusted net income for the three months to June 30 came in at $185 million against $146.7 million in the same period last year.

“While currency and fuel were the biggest drivers of the earnings increase versus guidance, net yields on a constant-currency basis also increased 4.2%,” the parent company of lines such as Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises said.

“Yields were better than expected, mainly driven by close-in pricing in the Caribbean and China.”

The better than expected quarterly performance in the Caribbean and China is offsetting increased costs in the second half of the year covering additional marketing activities focused on 2016.

RCCL described bookings since April as being “healthy” and the company continues to be booked ahead of last year.

“A solid Caribbean environment is more than off-setting softness on Latin American sailings associated with our Pullmantur brand,” the company said

Chief financial officer Jason Liberty said: "Momentum in the Caribbean continues at a solid pace, and our strong booked position in the third and fourth quarters gives us confidence as we move through the second half of 2015.

"The trajectory of our brands is firmly on course for another record year of earnings, with healthy trends extending into the first quarter of 2016."

While it is too early to provide a detailed picture for 2016, first quarter bookings are running well ahead of last year at higher prices, with improvements in the Caribbean continuing at a “robust” pace, the company added.

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