Norwegian Cruise Line Reports 29 Percent Increase in Earnings

Norwegian Cruise Line Reports 29 Percent Increase in Earnings

Norwegian Cruise Line reported adjusted EBITDA for the second quarter ended June 30, 2011, increased 29 percent to $123.5 million from $95.7 million for the same period in 2010. Net revenue for the quarter increased 19.8 percent to $418 million from $349 million last year as a result of a 14.9 percent increase in capacity days, due to the addition of Norwegian Epic to the fleet in June 2010, along with an improvement in net yield of 4.2 percent.

The increase in net yield was a result of both higher passenger ticket pricing and increased onboard spending per capacity day. Net income for the quarter was $29.2 million on revenue of $568.6 million, compared to a net loss of $14.9 million on revenue of $477.9 million in 2010.

The price of fuel in the second quarter increased 17.1 percent to $595 per metric ton from $508 in 2010. Interest expense, net of capitalized interest, increased to $46.7 million in the quarter compared to $37 million in 2010 due to increased borrowings attributable to the addition of Norwegian Epic.

As with the Norwegian Star in 2010 and Norwegian Sun in early 2011, Norwegian Dawn underwent an extended multimillion-dollar dry-dock in May. Accommodation improvements included the addition of 58 new suites and staterooms, along with upgraded flat-screen televisions in all staterooms. Enhancements to the public areas included the addition of the Moderno Churrascaria, a Brazilian-themed specialty restaurant; a new layout for the Dawn Club Casino; and a complete renovation of the Kid’s Crew and Teen Club.

In June, the first reveal of the two new Project Breakaway ships, scheduled for delivery in the spring 2013 and 2014, debuted the balcony and mini-suite stateroom designs. In July, the second reveal centered around the suites complex, an exclusive area which offers passengers additional privacy and luxury.

The “ship within a ship” is comprised of 76 suites, 42 of which are located in the main complex with the balance spread throughout the ship. The suites share a private courtyard and pool area, restaurant, bar and concierge lounge. The company is branding the suite complexes throughout the fleet as The Haven by Norwegian.