The Norwegian Viva is docked at PortMiami’s Terminal B ahead of its christening ceremony in Miami on Nov. 29, 2023.
Richard Tribou | Tribune News Service | Getty Images
Norwegian Cruise Line Holdings on Tuesday reported its first profitable yr since 2019 as fourth-quarter losses narrowed dramatically.
The cruise company reported strong growth and ticket demand with an encouraging 2024 forecast. Shares of the corporate surged nearly 20% following the report.
Here’s how Norwegian performed within the fourth quarter compared with estimates from LSEG, formerly generally known as Refinitiv:
- Loss per share: 18 cents vs. 14 cents expected
- Revenue: $1.99 billion vs. $1.97 billion expected
For the last three months of 2023, Norwegian reported a net lack of $106.5 million, an improvement from a lack of $482.5 million within the year-ago period. The corporate’s loss per share narrowed to 25 cents from $1.14 the prior yr. Adjusting for one-time items, Norwegian reported a loss per share of 18 cents.
For the complete yr, the corporate generated total revenue of $8.55 billion, a 32% increase from 2019, with a net income of $166.2 million. In 2022, Norwegian lost $2.27 billion.
The corporate saw 102.9% occupancy for the yr. Total revenue per passenger per day increased 17% from pre-pandemic levels.
The corporate said it received robust demand for many of its cruises except those traveling through the Middle East, which were canceled on account of the violence in Gaza. The cancellations only caused a slight dip in occupancy within the fourth quarter to 99.2%, the corporate said.
“Norwegian Cruise Line Holding experienced a momentous yr of growth and achievement in 2023,” CEO Harry Sommer said in an announcement. “We successfully took delivery of three latest ships, one for every of our brands, representing essentially the most deliveries in a single yr in our Company’s 57-year history. This vital milestone showcases our dedication to innovation and commitment to providing exceptional vacation experiences for our guests.”
The corporate said it’s currently at record-high booking levels on account of “healthy consumer demand” across the fourth quarter and full yr.
For the complete yr 2024, the corporate expects an adjusted profit of about $635 million, or $1.23 per share, and an occupancy rate of about 105%. Analysts polled by LSEG had anticipated 2024 earnings per share of $1.21.
Shares of other cruise corporations, including Royal Caribbean Cruises and Carnival Corp., also rose Tuesday morning.
