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Royal Caribbean Cruises results beat on higher onboard spend
July 25, 2013 / 1:36 PM / 4 years ago

Royal Caribbean Cruises results beat on higher onboard spend

2 Min Read

(Reuters) - Royal Caribbean Cruises Ltd (RCL.N) reported better-than-expected quarterly results as holidaymakers spent more on onboard entertainment.

Shares of the world's second-largest cruise operator after Carnival Corp (CCL.N) were up 2 percent at $36.97 on the New York Stock Exchange in early trading on Thursday.

Royal Caribbean, however, forecast weak third-quarter earnings, citing steeper fuel prices and a stronger dollar.

The company said it expects a third-quarter profit of $1.60 to $1.70 per share, missing analysts' average estimate of $1.82 per share.

Royal Caribbean reported a profit of $24.7 million, or 11 cents per share for the quarter ended June 30, compared with a loss of $3.7 million, or 2 cents per share, a year earlier.

A 5 cent per share impact related to a fire on its Grandeur of the Seas ship in May was included in second-quarter earnings, the company said.

Royal Caribbean had said the fire would have a significant impact to its results.

Excluding items, the company reported earnings of 23 cents per share.

Analysts on average had expected the company to post earnings of 11 cents per share, on revenue of $1.86 billion, according to Thomson Reuters I/B/E/S.

Revenue from spending on onboard entertainment rose 6 percent. Total revenue rose 3 percent to $1.88 billion.

Net yields, which include ticket prices and spending on board, rose 2.8 percent on a constant currency basis.

Reporting by Siddharth Cavale in Bangalore; Editing by Joyjeet Das

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