After an "exceptional" 2023, Royal Caribbean Group's Q1 2024 earnings report surpassed expectations.
Cruise Week reports: The numbers released this morning (25APR) did not disappoint.
"2023 was an exceptional year, propelled by unmatched demand for our brands from new and loyal guests," said Jason Liberty, president and CEO of Royal Caribbean Group. "With the wind in our sails and record-breaking bookings, 2024 is poised to be another robust year."
The company reported a profit of USD$360 million in the first quarter of 2024. For those keeping track, that's a bigger profit than the first quarter of 2019 (a USD$250 million net profit), even when taking inflation into account.
In a statement, Royal Caribbean Group stated: "These results were better than the company's guidance due to stronger pricing on close-in demand, strength in onboard revenue and favourable timing of expenses. As a result of an exceptional Wave season and continued strength in demand, the company is increasing 2024 adjusted EPS guidance to $10.70 - $10.90 per share."
Load factors climbed to 107% for the quarter. Net yields were up 19.3% year over year.
What's Next?
Liberty pointed out these numbers are impacting the business moving forward: "Wow, what a great start to the year! Demand for our leading brands and the incredible experiences they deliver continues to be very robust, resulting in outperformance in the first quarter, a further increase of full-year earnings guidance, and 60% expected earnings growth year over year."
As of 31MAR, 2024, the Group's customer deposit balance was at USD$6.0 billion. Net yields are expected to increase by more than 10% in the second quarter.
Commissions, Transportation & Other climbed from USD$403 million in the first quarter of 2023 to USD$498 million in the first quarter of 2024, a whopping increase of 24%.
"Demand for our brands continues to outpace broader travel as a result of consumer spend further shifting toward experiences and the exceptional value proposition of our products," added Liberty, president."We have exciting new vacation experiences in 2024, including the game changing Icon of the Seas, and have entered the year in a record booked position at significantly higher prices, further positioning us for a strong 2024."
