Royal Caribbean reports better than expected third quarter results
Royal Caribbean reported a 5.4 percent rise in quarterly revenue in its third quarter 2015 financial results.
Caribbean and European demand and strong performance in Asia more than off-set further weakness in Latin America. In addition, Anthem of the Seas joining the fleet, efforts to drive incremental Onboard Revenue, and a continued focus on cost efficiencies also contribute to a stronger end of the year.
Royal Caribbean's total revenue jumped to $2.52 billion from $2.39 billion a year earlier, in the third quarter.
"As we have reiterated throughout the year, we remain ahead on both pricing and volume versus same time last year," said Jason T. Liberty, chief financial officer. "While Latin America is stressing yields in the fourth quarter, strong year-over-year pricing in the Caribbean, and the addition of capacity in China, will solidify this fourth quarter as the best in our company's history."
Royal Caribbean also announced a $500 million share repurchase program, where the company will look to buyback its common stock. The company plans to begin with an accelerated share repurchase transaction of $200 million that should be completed by the end of January 2016. The company expects to complete the program by year-end 2016.