Norwegian Cruise Line Holdings disclosed its inaugural profitable year since 2019 as fourth-quarter losses markedly contracted. The cruise behemoth revealed robust expansion and ticket demand alongside an optimistic 2024 projection. Shares of the corporation soared by 17% in response to the announcement.
Here’s how Norwegian fared in the fourth quarter compared to projections from LSEG, formerly recognized as Refinitiv:
Loss per share: 18 cents vs. 14 cents anticipated
Revenue: $1.99 billion vs. $1.97 billion forecasted
During the last quarter of 2023, Norwegian disclosed a net loss of $106.5 million, marking an improvement from a loss of $482.5 million in the corresponding period the previous year. The company’s loss per share narrowed to 25 cents from $1.14 in the preceding year. Accounting for one-time items, Norwegian reported a loss per share of 18 cents.
For the entire year, the company amassed a total revenue of $8.55 billion, a 32% escalation from 2019, yielding a net income of $166.2 million. In 2022, Norwegian incurred losses amounting to $2.27 billion. The company registered a staggering 102.9% occupancy rate for the year. Total revenue per passenger per day surged by 17% compared to pre-pandemic levels.
The corporation noted robust demand for most of its cruises except those traversing the Middle East, which were axed due to the unrest in Gaza. Nonetheless, these cancellations only marginally impacted occupancy in the fourth quarter, dipping to 99.2%, as per the company’s statement.
“Norwegian Cruise Line Holding experienced a momentous year of growth and achievement in 2023,” remarked CEO Harry Sommer. “We successfully took delivery of three new ships, one for each of our brands, representing the most deliveries in a single year in our Company’s 57-year history. This important milestone showcases our dedication to innovation and commitment to providing exceptional vacation experiences for our guests.”
The company revealed it’s presently witnessing historically high booking levels owing to “robust consumer demand” across the fourth quarter and the entire year.
For the entire year 2024, the company anticipates an adjusted profit of about $635 million, translating to $1.23 per share, and an occupancy rate of approximately 105%. Analysts polled by LSEG had projected 2024 earnings per share of $1.21.
Shares of other cruise entities, including Royal Caribbean Cruises and Carnival Corp., also experienced an uptick on Tuesday morning.
