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Norwegian Cruise Line profits up in third quarter

Norwegian Cruise Line Holdings reported improved third-quarter earnings on Wednesday. The company welcomed Norwegian Getaway, shown in this file photo, in January.
Norwegian Cruise Line Holdings reported improved third-quarter earnings on Wednesday. The company welcomed Norwegian Getaway, shown in this file photo, in January.

Higher cruise fares and onboard spending helped Norwegian Cruise Line Holdings sail to increased earnings for the third quarter.

The Miami-based cruise company reported results for the quarter that ended Sept. 30 after markets closed Wednesday afternoon. Norwegian made $201.1 million in net income on revenue of $907 million, which represents a more than 17 percent increase in profits and 13.7 percent jump in revenue. Net yields, or net revenue per capacity day, increased 3 percent — slightly better than expected.

Adjusted net income of $232.2 million, or $1.11 a share, excludes some costs associated with transactions related to the acquisition of Prestige Cruises International. That per-share amount beat the company’s forecast and analysts’ expectations, though revenue missed Wall Street estimates by $9million.

Kevin Sheehan, Norwegian Cruise Line Holdings president and CEO, called the results “pretty spectacular,” especially considering competitive pricing in the Caribbean that has been a headache for the industry.

Sheehan said he expects to see improvement in that market after the first few months of 2015.

“We’re starting to see the end zone,” he said. “As we get out of the first quarter, things start to look very encouraging.”

Sheehan highlighted the company’s consistent improvement — for 25 consecutive quarters — in adjusted earnings before interest, taxes, depreciation and amortization.

“We see that continuing and we’re very comfortable to know that we can continue to grow our business quarter after quarter,” he said.

Norwegian Cruise Line has a 13-ship fleet, including the Norwegian Getaway, which started sailing in January. The parent company’s portfolio is expected to grow before the year ends with the acquisition of Prestige Cruises International, which includes Oceania Cruises and luxury Regent Seven Seas Cruises. The more than $3billion transaction is expected to close during the final quarter of 2014.

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