NCL dampens 2017 expectations amid sterling slump

NCL dampens 2017 expectations amid sterling slump

Norwegian Cruise Line Holdings today admitted that the weakening of the pound is putting pressure on performance expectations for 2017.

This followed weakened demand for Mediterranean cruises in the summer peak blamed on geopolitical events earlier in the year.

The company today reported improved net income of $342.4 million for the three months to September 30 against $251.8 million in the same period last year.

The results came as revenue rose by 15.6% to 1.5 billion in the quarter.

The increases were primarily attributed to the addition of Norwegian Escape, Oceania Sirena, and Regent Seven Seas Explorer to the fleet.

Chief financial officer Wendy Beck said: "We are on track to deliver robust double-digit growth in adjusted EPS [earnings per share] in 2016, despite headwinds from geopolitical events earlier in the year which dampened demand for Mediterranean sailings.

"Looking to the first half of 2017, where deployment is weighted to Caribbean sailings, advanced bookings are ahead of prior year's record levels at higher prices, while an early look at the full year shows occupancy commensurate with prior year at this same time at slightly lower prices.

“Recent significant weakening of certain foreign currencies, primarily the British pound, against the US dollar, combined with an increase in fuel prices have placed pressure on expectations for the coming year.

“Despite these headwinds, we still anticipate delivering double-digit growth in adjusted EPS in 2017."

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