Royal Caribbean has released its fourth quarter 2012 fiscal results as well as its full year 2012 results and provided an initial outlook for 2013.
In the fourth quarter of 2012, Royal Caribbean announced net income before impairment charges of $21.1 million, or $0.10 per share, versus income of $36.6 million, or $0.17 per share, in the fourth quarter of 2011. During the quarter the company recorded non-cash impairment charges totaling $413.9 million related to the company’s Pullmantur brand.
The good news is close-in bookings and onboard spending in the fourth quarter were stronger than expected and that resulted in a Net Yield increase of 1.8% on a Constant-Currency basis versus prior guidance of just 1%.
For the full year of 2012, net income before impairment charges was $432.2 million, or $1.97 per share, versus income of $607.4 million, or $2.77 per share for full year 2011.
Looking forward to the fiscal year of 2013, booking activity in the fourth quarter 2012 was lower than the same time last year due to the aftermath of super-storm Sandy. However, Royal Caribbean has seen much stronger bookings since the beginning of the WAVE season in January, which shows demand to be at a healthy level.
In fact, Royal Caribbean is seeing booking volume running about 20% ahead of this same time last year. Booking volumes are exceeding those during the same period in 2011 and in the aggregate, forward booked load factors and pricing are higher than at this time in both 2011 and 2012.
Royal Caribbean Chairman Richard Fain commented that Royal Caribbean is doing well in North America but not as well in Europe, "Looking forward, we see a tale of two continents; North America is doing well, while parts of Europe continue to be a challenge. Nonetheless, we are encouraged that the former will countervail the latter allowing us to drive meaningful yield growth in 2013."