Norwegian Cruise Line (NCLH) Posts Profit for Q4 2023

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Norwegian Viva docked at PortMiami

Norwegian Cruise Line Holdings (NCLH) reported its first profitable year since 2019, with significant improvements in Q4 losses. The company witnessed strong growth and ticket demand, leading to an optimistic forecast for 2024. As a result, shares of the company surged 17% following the announcement.

Positive Q4 Results

In the fourth quarter, Norwegian Cruise Line performed admirably compared to estimates from LSEG (formerly known as Refinitiv). The results include:

  • Loss per share: 18 cents (vs. an expected 14 cents)
  • Revenue: $1.99 billion (vs. an expected $1.97 billion)

The company reported a net loss of $106.5 million for the final three months of 2023, which is a significant improvement from the $482.5 million loss in the same period the previous year. The loss per share also narrowed to 25 cents, down from $1.14 the previous year. After adjusting for one-time items, Norwegian reported a loss per share of 18 cents.

A Successful Year

In 2023, Norwegian Cruise Line generated total revenue of $8.55 billion, marking a 32% increase compared to 2019. The company achieved a net income of $166.2 million, contrasting with the $2.27 billion loss in 2022. Occupancy for the year reached an impressive 102.9%, and total revenue per passenger per day exceeded pre-pandemic levels by 17%.

Despite slight cancellations caused by the Middle East violence leading to a dip in occupancy during the fourth quarter (99.2%), the company still experienced robust demand for most of its cruises.

CEO’s Statement

Harry Sommer, CEO of Norwegian Cruise Line Holdings, expressed his satisfaction with the company’s achievements in 2023, stating, “Norwegian Cruise Line Holding experienced a momentous year of growth and achievement in 2023. 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.”

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Promising Outlook for 2024

The company projects an adjusted profit of approximately $635 million for the full year 2024, translating to $1.23 per share. Additionally, Norwegian Cruise Line anticipates an occupancy rate of about 105%. Analysts polled by LSEG had previously anticipated 2024 earnings per share of $1.21.

Market Reaction

Norwegian Cruise Line’s positive earnings report had a ripple effect on the market, with shares of other cruise companies, such as Royal Caribbean Cruises and Carnival Corp, also experiencing an increase in value on Tuesday morning.

For more information about Norwegian Cruise Line Holdings’ earnings, visit Business Today.