Royal Caribbean reports larger than expected loss and lack of revenue, but bookings show significant improvement
Royal Caribbean Group RCL shares,
slipped 0.6% in pre-market trading on Friday, after the cruise line reported larger-than-expected loss and revenue, lower than expected, but said booking volumes improved “significantly “since the slowdown induced by the delta variant during the summer. The net loss for the quarter ended Sept. 30 was $ 1.42 billion, or $ 5.59 per share, after a loss of $ 1.35 billion, or $ 6.29 per share, during the period last year, the weighted average number of shares outstanding increased by 18.9%. Excluding one-time items, adjusted losses per share narrowed to $ 4.91 from $ 5.62 and missed the FactSet consensus loss of $ 4.39. The company reached revenue of $ 456.96 million, after negative revenue of $ 33.69 million last year, but was below the FactSet consensus of $ 567.0 million, as passenger ticket revenue increased 87-fold to $ 280.15 million, but exceeded expectations by $ 487.8 million. The company said on Friday that 40 vessels of the company’s five brands, or 65% of its capacity, had resumed navigation. Bookings were above second quarter levels with particular strength in September, with new bookings for 2022 departures for the month being more than 60% above the monthly average for the second quarter. The stock has gained 5.3% in the past three months to Thursday, while the S&P 500 SPX,
nailed on 4.0%.