Norwegian Cruise Line Holdings (NCLH) has hailed “strong” financial results for the second quarter of 2024, with total revenue growing by 8% year on year to reach a record for the period.
The company, which operates Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, generated total revenue of $2.4 billion in the three months up to June 30, up from $2.2 billion in the same period of last year.
Net income for the second quarter of this year was $163.4 million, an increase on the $86.1 million generated last year.
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NCLH president and chief executive Harry Sommer (pictured) said: “[This year] continues to be an exceptional year in terms of our financial performance, as evidenced by our strong second quarter results which exceeded guidance across the board.”
The number of passengers carried was 711,918 and the occupancy percentage was 105.9%, an increase on last year’s second quarter figures of 693,085 and 104.9%.
Passenger ticket revenue was $1.6 billion, up from $1.5 billion last year, while onboard and other revenue was $770 million, up from $727 million.
Gross cruise costs per capacity day totalled about $315 in the second quarter, which was the same as last year.
Total debt on June 30 stood at $13.4 billion, down from $14.1 billion on December 31, 2023.
Mark A. Kempa, executive vice-president and chief financial officer of NCLH, said: “We made significant advances in reducing net leverage and de-risking our balance sheet during the first half of 2024.
“We have already accomplished our year-end goal of reducing net leverage by a full turn and a half versus year-end 2023, ending the quarter at 5.9x.”
The company said it continued to see “strong consumer demand”, with the majority of new bookings being for 2025 sailings. As a result, it said, it remains at the upper range of its optimal booked position on a 12-month forward basis.
Kempa added: “We enter the second half of 2024 with strong momentum, exceeding our guidance metrics in each quarter of 2024 on the back of strong execution.
“We continue to see robust demand heading into the back half of the year and are committed to improving efficiencies, reducing costs and restoring our margins in a strategic and disciplined manner.
“Given our strong progress to date and current demand expectations, we are raising our 2024 full-year guidance for a third time this year for key metrics resulting in expected Adjusted EPS growth of 120% versus 2023, while keeping our cost guidance for the year unchanged at flat to prior year.”