The Norwegian Viva is docked at Terminal B at the Port of Miami ahead of her christening ceremony in Miami on November 29, 2023.
Richard Tribou | Tribune news service | fake images
Norwegian cruise line holdings On Tuesday it reported its first profitable year since 2019, as fourth-quarter losses narrowed sharply.
The cruise company reported strong growth and demand for tickets with an encouraging forecast for 2024. The company's shares rose nearly 20% following the report.
Here's how Norwegian performed in the fourth quarter compared to estimates from LSEG, formerly known as Refinitiv:
- Loss per share: 18 cents vs. 14 cents expected
- Revenue: $1.99 billion vs. $1.97 billion expected
For the final three months of 2023, Norwegian reported a net loss of $106.5 million, an improvement from a loss of $482.5 million in the same period a year earlier. The company's loss per share narrowed to 25 cents from $1.14 a year earlier. Adjusting for one-time items, Norwegian reported a per-share loss of 18 cents.
For the full year, the company generated total revenue of $8.55 billion, an increase of 32% over 2019, with net income of $166.2 million. In 2022, Norway lost $2.27 billion.
The company recorded an occupancy rate of 102.9% during the year. Total revenue per passenger per day increased 17% over pre-pandemic levels.
The company said it received strong demand for most of its cruises, except those traveling through the Middle East, which were canceled due to violence in Gaza. The cancellations only caused a slight drop in occupancy in the fourth quarter to 99.2%, the company said.
“Norwegian Cruise Line Holding experienced a momentous year of growth and achievement in 2023,” CEO Harry Sommer said in a statement. “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 shows our dedication to innovation and commitment to provide exceptional vacation experiences for our guests.”
The company said it is currently at record booking levels due to “healthy consumer demand” during the fourth quarter and full year.
For full year 2024, the company expects adjusted profit of about $635 million, or $1.23 per share, and an occupancy rate of about 105%. Analysts surveyed by LSEG had anticipated 2024 earnings per share of $1.21.
Shares of other cruise companies, including Royal Caribbean Cruises and Carnival Corp., also rose on Tuesday morning.
