Star Cruises Group Endures $124 Million in Fourth-Quarter Losses

Star Cruises Group, parent of NCL Corp., recorded a net loss of $123.6 million in the fourth quarter 2007, compared to a net loss of $147.6 million in the same period in 2006. Net revenue for fourth quarter 2007 increased 17.7 percent from the same period a year earlier, primarily due to an 8.5 percent capacity increase and an 8.4 percent increase in net revenue yield.

Driving the increase in net revenue yield was higher passenger ticket prices and an increase in onboard revenues of NCL Group and increased occupancy levels. The capacity increase was mainly due to the additions of Norwegian Pearl and Norwegian Gem, which entered service in November 2006 and October 2007, respectively, which was partially offset by the departure of Norwegian Crown in November 2007. The overall group occupancy was 100.5 percent compared with 97.8 percent in the fourth quarter.

For 2007, the group recorded a net loss of $157.4 million before impairment loss, non-cash foreign currency debt translation loss and other compared to a net loss of $104.2 million before impairment loss, non-cash foreign currency debt translation loss and others in 2006. For the full year 2007, the net loss was $200.9 million compared to a net loss of $156.2 million in 2006.

Net revenue for 2007 increased 12.1 percent compared with 2006 primarily due to a 10.7 percent increase in capacity and a 1.3 percent increase in net revenue yield. The overall group occupancy was at 102.9 percent in 2007 compared with 100.9 percent in 2006.

For NCL Corp., net revenue was 15.4 percent higher mainly as a result of 4 percent higher capacity and 11 percent higher net revenue yield. The increase in net revenue yield was a result of improved ticket prices and onboard revenues. NCL occupancy for the fourth quarter 2007 was at 104 percent compared to 100.2 percent in 4Q 2006.

For full-year 2007, capacity was 10.3 percent higher compared with 2006 mainly due to the full year of sailing of Norwegian Pearl and Pride of Hawaii and the introduction of Norwegian Gem, partially offset by the departures of Norwegian Wind and Norwegian Crown.

Net revenue was 12.7 percent higher as a result of the increase in capacity and a 2.1 percent increase in net revenue yield. Occupancy in 2007 was at 106.6 percent compared to 105.1 percent in 2006.