News: Stuck in port, Royal Caribbean’s quarterly loss cruises past $1 billion.
(Reuters) – The Royal Caribbean Group lost more than $ 1 billion in the fourth quarter as the coronavirus crisis held its cruise lines ashore, but pointed to strong booking trends for 2022.
Cruise companies have been propping up cash reserves by issuing new shares, selling assets, or borrowing billions in the last few months as the COVID-19 pandemic virtually brought the industry to a standstill.
With the ships non-sailing, Royal Caribbean’s total revenue for the quarter fell from $ 2.52 billion a year ago to $ 34.1 million. According to Refinitiv IBES data, analysts had expected sales of 35.6 million US dollars.
However, the company said bookings for the first half of 2022 were in historical ranges and at higher prices, underscoring strong demand for cruises.
Royal Caribbean, which had a rare negative revenue last quarter, was forecasting a net loss for the first quarter and fiscal 2021.
Several analysts believe that Royal Caribbean and its colleagues Carnival Corp and Norwegian Cruise Line Holdings Ltd will gradually resume voyages in the second half of this year as governments in the US and other major markets vaccinate thousands of people.
At the end of December, Royal Caribbean had around $ 4.4 billion in liquidity, up from $ 3.7 billion at the end of the third quarter after a $ 1 billion stock offering was initiated in the fourth quarter .
The operator of the Oasis of the Seas and Symphony of the Seas cruises posted a net loss of $ 1.37 billion, or $ 6.09 per share, for the quarter ended December 31, compared to earnings of $ 273.1 million $ 1.30 per share share, a year earlier.
Adjusted, the company lost $ 5.02 per share compared to analysts’ estimates of a loss of $ 5.20.
Reporting by Praveen Paramasivam in Bengaluru; Adaptation by Shounak Dasgupta
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