Norwegian projects bumper first quarter as cruise demand surges

27th Feb 2024 14:52

(Sharecast News) - Norwegian Cruise Line projected a promising first-quarter profit on Tuesday, buoyed by robust demand and increased ticket prices.

The Miami-based cruise giant said it expected an adjusted profit of 12 cents per share for the first quarter, against analyst expectations for a 20 cent loss per share.

It said its advance ticket sales for 2023 reached a record $3.2bn, marking a substantial 56% increase compared to the end of 2019, before the Covid-19 pandemic.

In the fourth quarter, Norwegian recorded revenue growth of 31%, reaching $1.99bn, just above the anticipated $1.97 billion.

Onboard revenue was ahead 20% compared to the 2019 figures, and occupancy levels surged to 99.2% in the fourth quarter, from 87% a year earlier.

"Norwegian Cruise Line experienced a momentous year of growth and achievement in 2023," said president and chief executive officer 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."

Looking ahead, Sommer said the firm was determined to capitalise on its recent achievements and take advantage of the positive momentum and strong demand for cruises, which resulted in turning the year at all-time highs in both its booked position and pricing.

"Our team is looking forward to showcasing our world-class fleet, delivering exceptional experiences, and surpassing the expectations of the guests we will welcome on board in 2024 and beyond."

At 1000 EST (1500 GMT), shares in Norwegian Cruise Line Holdings were up 10.51% on the Nasdaq, at $17.60.

Reporting by Josh White for Sharecast.com.