Norwegian Cruise Line announces third quarter results

The Breakaway is being delivered ahead of schedule

Norwegian Cruise Line has announced its results for the third quarter, ending 30 September 2012.

Operating income increased 8.8% to US$174.1 million compared to US$160.0m in 2011 with an improvement in operating margin to 25.8% from 24.0%. Adjusted EBITDA grew 7.2% to US$223.6m from US$208.6m with an increase in margin to 33.2% from 31.3%. Net Revenue increased 1.8% to US$498.4 million primarily due to an increase in Net Yield. With increases in both ticket and onboard and other revenue, Net Yield improved 1.0%, or 2.6% on a constant currency basis.

“Posting these great results, despite the challenging economic environment in Europe where we had a record deployment, is a testament to the discipline and rigour instilled at Norwegian to continuously improve quarter after quarter,” said Kevin Sheehan, the company’s president and chief executive officer. “Our results reflect strategic pricing programmes, benefits from process improvements and other enhancement initiatives which resulted in a nine percent improvement in operating income.”

Good news also came in the running costs the line incurred. Net cruise cost per capacity day decreased 3.3% with the difference reflecting lower ship operating expenses, timing of repair and maintenance expense and efficiencies from business improvement initiatives partially offset by a 13.5% increase in the per metric ton cost of fuel to US$679. Excluding fuel expense, net cruise cost per capacity day decreased 7.7%, or 6.2% on a constant currency basis.

The last quarter has been busy for Norwegian Cruise Line with renovations announced for Pride of America, the Breakaway was announced as being ahead of schedule and the firm has also announced that it has ordered a new ship from Meyer Werft – the company which is delivering Breakaway ahead of its planned launch.

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