Royal Caribbean Scored New Record Highs in 2005

Royal Caribbean Cruises posted a record net income for 2005 at $716 million on revenues of $4.9 billion, compared to net income of $474.7 million on revenues of $4.6 billion in 2004.

At the same time, RCCL stemmed losses during the fourth quarter with $3.6 million, as compared to a net loss of $25.8 million in the year-ago period.

Meanwhile, revenues for the fourth quarter increased 6.7 percent to $1 billion from revenues of $964.6 million in the year-ago quarter. Gross yields and net yields for the 2005 fourth quarter increased 6.1 percent and 8.2 percent, respectively from the year-ago period.

The company said a number of factors drove performance, which was better than anticipated. A surge in demand for later bookings bolstered ticket prices, and onboard revenues also were stronger than anticipated in every category, according to the company.

Net yields increased 8.2 percent over the fourth quarter of 2004, while gross and net cruise costs increased 5.3 percent and 7.6 percent, respectively, outpacing fourth-quarter 2004 performance.

Net yields also increased in the company´s year-end accounting, up 7.4 percent from the previous year, due to higher onboard revenues and ticket prices. A one-time gain of $52.3 million resulted in a change in accounting principle, the company said.

As for this year, the outlook for 2006 is strong, however, the first four weeks of wave season have not been as “buoyant” as last year, according to Chairman and CEO Richard Fain during which the company saw a “huge surge” in bookings.