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NCL Reports $14.9 Million Second Quarter Net Loss

Norwegian Cruise Line reported a net loss of $14.9 million second quarter ended June 30 compared to profits of $15.4 million in the same period last year. Revenue was $477.9 million compared to $478.4 million in second-quarter 2009. NCL said the net loss in 2010 included a non-recurring charge of $33.1 million related to foreign exchange contracts associated with the financing of Norwegian Epic. Excluding this non-recurring charge, net income for the period was $18.2 million.

EBITDA for the second quarter of 2010 improved 12.6 percent to $94.7 million versus $84.2 million for the same period in 2009—that’s a 12.1 percent increase on an adjusted basis, to $95.7 million from $85.4 million.
An improvement in net yield of 6.6 percent in the quarter resulted in net revenue increasing to $364.7 million from $353.9 million despite a 3.3 percent decrease in capacity days due to the departure of Norwegian Majesty from the fleet in October. The increase in net yield came from both improved passenger ticket pricing and increased onboard revenue per capacity day.

Occupancy percentage for the quarter was 109.2 percent. “The results for the quarter demonstrate that we are continuing to build momentum,” said Kevin Sheehan, CEO of NCL. “Our improved results over last year were achieved while absorbing a 43 percent increase in the price of fuel.”

Sheehan reported a successful introduction of the Norwegian Epic. “We could not have asked for a better way to introduce Norwegian Epic to the world,” he said. “Norwegian Epic has been booking extremely well, setting records week after week since her introduction in Europe and subsequent inaugural events in New York and Miami.” Norwegian Epic is currently sailing alternating seven-day Eastern and Western Caribbean itineraries on Saturdays from the Port of Miami through April, when it will then reposition to the Mediterranean for the summer season out of Barcelona.

NCL also said the second half of 2010 is showing “solid improvements” in pricing from 2009 levels with load factors consistent with prior year. Unlike this time last year, the company has been successful at holding price while balancing load factor, the company statement said. The booking curve continues to be healthy, but has narrowed from the highest levels achieved in the first quarter of 2010. For more information, call 888-625-2784 or visit www.ncl.com.