Miami-based Norwegian Cruise Line Holdings saw profits leap in 2014 to more than $338 million after acquiring a smaller, high-end cruise company.
The Miami-based cruise operator released fourth-quarter and full-year earnings for 2014 late Tuesday afternoon.
Revenue soared more than 21 percent to $3.1 billion for the full year, driven by a nearly 20 percent increase in capacity days. The company added the Norwegian Getaway in early 2014 and eight ships belonging to Prestige Cruise Holdings in mid-November. That company included the upscale Oceania Cruises with five ships and luxury three-ship Regent Seven Seas Cruises.
“Looking back at our accomplishments over the past year, it is clear that 2014 will be remembered as one of solid growth and game-changing expansion for the company,” said Norwegian Cruise Line Holdings president and CEO Frank Del Rio in a statement.
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The company reported a net loss of $25.6 million for the fourth quarter due to expenses related to the Prestige acquisition. Revenue jumped from $600 million a year earlier to $789 million in 2014.
For the current quarter, the company said competitive pricing in the Caribbean is contributing to “tempered expectations.” But the picture gets brighter for the rest of the year.
“Looking to the balance of the year, the outlook is much more encouraging with solid pricing and booking trends across all markets,” Del Rio said in the statement. He said as of Tuesday, the parent company has more booked revenue on future sailings than ever.
The cruise company has seen significant changes in the last few months. In November, Norwegian completed its $3 billion acquisition of Prestige. And in January, former president and CEO Kevin Sheehan abruptly resigned. Del Rio — formerly CEO of Prestige — was immediately named to replace him.
Executives will hold a conference call to discuss the results Wednesday morning.