In a recent trading update covering the three months to 1 July, the company reported strong pricing for both North America and Europe itineraries, coupled with an increase in onboard spending, led to "better-than-expected" revenues in Q2 and the boost in the company’s full year outlook for revenue and earnings.
Booking volumes in Q2 remained "significantly" higher than the corresponding period in 2019 at record pricing levels and as of 30 June, the group’s customer deposit balance was at a record-high $5.7 billion.
Demand for 2023 sailings has also exceeded the firm’s expectations and bookings for 2024 sailings are up significantly versus all prior years at record prices. Bookings from European consumers have also accelerated.
It’s the second time this year the group has improved its revenue expectations, after it saw booking volumes in the first quarter of 2023 perform "considerably" better than expected.
As a result of the accelerating demand for holidays with the group’s brands – Royal Caribbean, Silversea Cruises and Celebrity Cruises – the company has increased its 2023 adjusted earnings per share guidance by 33% to $6.00-$6.20.
RCG reported second quarter earnings per share of $1.70 and adjusted earnings per share of $1.82, which are "significantly" better than the company’s guidance.
"Our brands continue to fire on all cylinders, resulting in record yields and second quarter earnings significantly exceeding our expectations," said Jason Liberty, president and chief executive of RCG.
"Demand for cruising and our brands is exceptionally strong and we have seen another step change in booking volumes and pricing, leading us to now expect double-digit net yield growth for the full year."
During the reporting period, gross margin yields increased by 13.1% and net yields increased 12.9% compared to the same period in 2019.
Total revenues were a record $3.5 billion, net income was $458.8 million, adjusted net income was $491.7 million, adjusted EBITDA was a record $1.2 billion and operating cash flow was $1.4 billion.
