Royal Caribbean Group Posts Strong Q1, Stays Resilient Amidst Global Tensions
by Bruce Parkinson
Royal Caribbean Group first quarter results were better than expected thanks to more favourable revenue, lower costs, and better performance from joint ventures.
“Our strong first quarter results and record WAVE season demonstrate the exceptional appeal and compelling value proposition of our trusted brands, industry-leading ships, and destinations,” said Jason Liberty, Royal Caribbean Group Chairman and CEO.
“Demand for our experiences continues to be strong, and we remain focused on delivering the best vacations responsibly, accelerating revenue growth, and managing costs, all while continuing to invest in our future and drive further differentiation.
We expect another year of double-digit revenue and earnings growth, driven by consumers’ preference for our leading brands and expanding portfolio – all supported by our strong booked position, leading margin profile, and fortified balance sheet.”
During the first quarter, the company returned approximately US$1.1 billion to shareholders through $836 million of share repurchases and $270 million of dividend payments.
The cruise giant noted that bookings moderated in March and early April for Mediterranean and West Coast of Mexico itineraries due to geopolitical developments. However, Royal Caribbean says they have now recovered and are currently running at a higher pace than the same time last year.
“We continue to execute on our innovation pipeline and broaden our vacation ecosystem in ways that further strengthen our long-term growth trajectory,” Liberty added.
“We are expanding our portfolio through the recent launch of Royal Beach Club Santorini, the upcoming delivery of Legend of the Seas, and the recent orders for Icon VI and Icon VII. Of particular note are the steps we are taking to enhance our loyalty ecosystem, including the recent introduction of the Royal ONE credit card. This is one further step to deepen guest engagement and to position us to capture a greater share of the large and growing global vacation market.”
