Norwegian predicts 2016 will be ‘breakout year’ for trio of cruise brands

Norwegian predicts 2016 will be ‘breakout year’ for trio of cruise brands

Norwegian Cruise Line Holdings (NCLH) predicts that 2016 will be a “breakout year” for the company’s trio of cruise brands.

The projection came as the group reported a strong summer period with increased pricing and yields.

Earnings [EBITDA] grew by 37% to $447.8 million in the three months to September 30 over the same period last year.

Strong pricing increased adjusted net yield by 4.7%, driven by strength in Caribbean, Bermuda and Alaska itineraries, partially offset by softness in certain eastern Mediterranean sailings, according to the company.

Adjusted net revenue rose by more than 40% to $978.2 million primarily as a result of the acquisition of Oceania and Regent Seven Seas Cruises parent Prestige Cruise Holdings.

The recent delivery of Norwegian Escape (pictured) marks the latest chapter in a new build programme which will see ship deliveries each year through to 2019.

The company will take delivery of two additional ships in 2016.

Sirena will join Oceania Cruises in March with its first sailing in late April following a 35-day, multi-million dollar upgrade and refurbishment.

Seven Seas Explorer will join the Regent fleet in the third quarter.

NCLH president and chief executive, Frank Del Rio, said: “The momentum from the initiatives we have implemented is building and is reflected in the solid foundation of bookings which, coupled with the powerful earnings growth from our existing fleet and upcoming ship additions, have positioned 2016 to be a breakout year.”

Reviewing the past quarter, he said: “The continued momentum from our revenue enhancement strategies resulted in net yield growth of approximately 5%, driving strong earnings performance in the quarter.

“What is most impressive is that this yield performance was driven purely by organic growth, demonstrating that robust topline growth need not be predicated solely on the addition of new ships to our fleet.”

Chief financial officer, Wendy Beck, added: “The alignment of revenue management strategies across our three brands has resulted in a lengthening of the booking curve, enabling us to drive higher pricing, particularly on the Norwegian brand.

“This stronger pricing is contributing to robust earnings growth of approximately 27% in 2015, and brings our three year compound annual growth rate to over 40% since our initial public offering in 2013.”


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