Royal Caribbean Group posted its second-quarter earnings, and it announced that it will reinstate dividends later this year. It posted net income of $854 million, buoyed by better-than-expected sales of $4.11 billion, which is up 16.7%.
| “Exceptional demand accelerated our performance by generating significant yield growth,” CEO Jason Liberty said. “We remain intensely focused on driving strong shareholder returns. Our momentum continues.” |
It has maintained strong demand with the high prices seen in the last quarter continuing. Onboard and pre-cruise spending increased again, Liberty said. Booking volumes are at record pricing levels. “We are already taking more bookings for 2025 sailings than 2024.” Overall, it handled just over two million guests at an average of 108% occupancy.
Company Reinstating Dividends
The company will reinstate dividends on October 11 with 40 cents per share to shareholders. It had postponed dividend payments back in 2020 as the pandemic kicked in.
Bullish on the short term, Royal Caribbean has raised its full-year profit forecast for a third time this year. Some Wall Street analysts predict the double-digit yield growth will soften to around 5% by the fourth quarter. Royal Caribbean’s liquidity as of the end of June was $3.8 billion.
Royal Caribbean Attracting More Young Cruisers
CEO Jason Liberty says the customer profile is getting younger, with almost half now millennials or younger. This age range has increased by 11% since the pandemic. Private destinations Perfect Day at CocoCay and the upcoming Royal Beach Club in Nassau are a major draw for people who are new to cruises and the younger demographic.
The new ship Utopia of the Seas, deployed on short cruises out of Florida, helps drive the rise in first-time and younger cruisers. As well Caribbean voyages, European and Alaskan itineraries have been performing strongly, Liberty said in the earnings call.
