Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| We continue to expect record adjusted EBITDA per APCD for the year and an EBITDA margin that is back to our previous record in 2019 |
| And you combine all that with incredible hardware coming into place next year, especially Icon of the Seas, as well as more volume onto places like perfect day because of HideAway, we feel very good about our yield projections for next year |
| Now moving on to the business, our teams have done an outstanding job delivering on another strong quarter as we delivered a yield improvement of close to 17% and beat the midpoint of our EPS guidance by 12% |
| This beat is further solidifying 2023 as a banner year and positioning us extremely well for 2024 and beyond |
| But I also think the point about new to brand, I think, has really significantly grown coming here out of COVID, which we think is another strength |
| During the third quarter, all key itineraries exceeded our already elevated expectations as we delivered a record 2 million memorable vacations, and exceptional guest satisfaction scores |
| As you can see on Slide 3, we had record yields for the quarter driven by new hardware, record pricing in the Caribbean and Europe, as well as onboard revenue rates that were up about 30% |
| While the performance of our Caribbean itineraries has been excellent throughout the year, we were particularly pleased with a double-digit yield growth achieved on our European itineraries in the third quarter |
| As we look to the full year, the strong performance in the third quarter and continued acceleration in the booking environment is positioning us well to deliver over 13% yield growth for the year and earnings per share that is twice our original guidance for the year |
| Our cost outlook reflects the continued benefit from all the actions we have taken over the last several years to support enhanced margins |
| And then I think our point about how focused we are about getting more reps out of our guests through loyalty, through having a recognition of our kind of family of brands, we think is also really strong |
| The healthy demand environment is very encouraging as we continue to build the business for 2024 and beyond |
| I would also keep in mind that we are pretty well booked, and we will cross this year in a very strong booked position |
| As you can see from our results, we are well on our way to achieving Trifecta |
| We are also beginning very much to benefit from new disruptive technology and employing them in different parts of our business that can lower service calls and improve process efficiencies |
| Moderate capacity growth, moderate yield growth, although I would not describe this year as moderate, and strong cost controls lead to enhanced margins, profitability and superior financial performance |
| And that, again, is already selling at record rates so and record volume |
| So the combo of Icon with hideaway is really for us exceptionally exciting |
| Our customers sentiment is bolstered by strong labor markets, high wages, surplus savings, and elevated wealth levels |
| So of course all of that comes online with Icon of the seas, which is by far the best selling product we've ever launched in the history of our business and it continues to perform an exceptionally high-level |
| Cruising remains an exceptional value proposition with strong demographics, and secular tailwinds, allowing us to outperform the broader leisure travel industry |
| So that just leads you to -- and our ambitions are to continue to grow the margin much more than we had in 2019, and that will go through with our proven formula, right? We continue to grow the business, to capacity growth, moderate yield growth and really strong control cost controls and disciplined capital allocation, we think will deliver more margin |
| And the demand has been exceptional |
| Our travel partners are also delivering meaningfully more bookings in 2019 levels, and even beating our elevated expectations |
| Our brand's global appeal and nimble sourcing model allows us to attract the highest yielding guests and partially mitigate the impact from the stronger dollar |
| I mean, we're delighted with the product |
| And I have to tell you, we are incredibly impressed |
| Demand for 2024 has continued to accelerate, with bookings consistently outpacing 2019 levels by a wide margin |
| This has resulted in a book position that is ahead of all prior years at higher rates, further positioning us for another year of strong yield and earnings growth |
| Demand for our brands has been at an exceptional level |
| Statement |
|---|
| We expect to increase dry dock days and the opening of HideAway Beach to negatively impact NCCx by approximately 300 basis points next year |
| NCC, excluding fuel increased 10.3% compared to the third quarter of 2019, a 100 basis points lower than our July guidance |
| This also includes $0.18 negative impact from FX and fuel rates as well as sailings that included Israel |
| If we're worried about that risk |
| We are heartbroken at the loss of so many innocent lives then and in the war that continues to this day |
| The scale and the barbarity of those attacks should shock us all and brings the situation in the Middle East to a very dangerous low |
| We do, however, have slightly fewer APCDs due to the cancelled sailings that included Israel, impacting NCCx by approximately 30 basis points |
| And then again, as we as we kind of think about, if we got to think about next year, clearly there's a lot of disruption going on with Israel right now, and I think Naft talked about, it's less than are you talking about that lesson, 1.5% of capacity for next year |
| Before we begin today, I would like to first acknowledge the devastating events taking place in the Middle East |
| This range also includes about 200 basis points negative impact from the elimination of the reporting lag related to Silversea |
| I believe that is why when people are raising concerns and other industries, like hotel, airline, real estate |
| And historically, there's been questions about on the book position |
| I think there's been a little, I would say, more elevated demand that we have seen, especially for Royal and ships, especially going to Perfect Day has been at an elevated level |
| And, obviously as we -- if these horrific situation continues to occur, that could potentially weigh on a consumer psyche, but that's not something that we're seeing at this point in time |
| So in summary, we expect adjusted earnings per share of $6.68 to $6.63 and it includes approximately $0.21 negative impacts from FX and fuel rates as well as sailings that included Israel |
| A number of factors could cause actual results to differ materially from our current expectations |
| The horrific terrorist attacks on Israel over 2 weeks ago have no place in a civilized society |
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