Alexa

Royal Caribbean Cruises says 1st-quarter earnings slumped due to acquisition

Royal Caribbean Cruises says 1st-quarter earnings slumped due to acquisition

Royal Caribbean Cruises Ltd., the world's second-largest cruise line, said Tuesday its first-quarter profit tumbled, mainly because of the inclusion of results from recently acquired Spanish cruise line Pullmantur.
Net income slumped to $8.8 million (euro6.47 million), or 4 cents per share, in the three months ended March 31 versus $119.5 million (euro87.84 million), or 55 cents per share, in the prior year.
Revenue rose 6 percent to $1.22 billion (euro0.9 billion) from $1.15 billion (euro0.85 billion) in the previous year.
Analysts polled by Thomson Financial expected earnings of 6 cents per share on sales of $1.18 billion (euro0.87 billion).
The company said Pullmantur's business is highly seasonal with very strong summer months but very weak winter months. The changes hurt its first-quarter earnings, and Royal Caribbean said it will also affect second-quarter results.
Total cruise operating expenses rose to $841.3 million (euro618.38 million) from $730.1 million (euro536.64 million). Its cruise lines include the Royal Caribbean International and Celebrity Cruise brands. Carnival Corp. is the world's largest cruise group.


Updated : 2021-04-11 22:01 GMT+08:00