Q1 2024 Norwegian Cruise Line Holdings Ltd Earnings Call Transcript
Key Points
- Record bookings and advanced ticket sales indicate strong consumer demand, leading to a record 12-month forward book position.
- Adjusted EBITDA nearly doubled in Q1 2024 compared to last year, driven by stronger pricing and higher occupancy levels.
- Significant reduction in net leverage, from 6.3x at the end of Q1, progressing towards a 1.5 turn improvement for the year.
- Launch of a historic newbuild program with 8 new ships across all three brands, enhancing future capacity and growth prospects.
- Achieved a notable B rating from CDP Climate, recognizing efforts in environmental sustainability and management of climate-related risks.
- Cancellation and rerouting of itineraries in the Middle East and Red Sea, impacting yield growth projections for 2024.
- Higher fuel costs and interest expenses partially offset the financial benefits of increased net yield and adjusted EBITDA.
- Despite strong demand, the geopolitical uncertainties in certain regions necessitate strategic itinerary adjustments, affecting overall operational flexibility.
- The need for continuous investment in sustainability and environmental initiatives to meet long-term decarbonization goals.
- Operational challenges related to maintaining cost efficiencies, particularly in the context of global inflationary pressures affecting new shipbuilding costs.
Good morning, and welcome to the Norwegian Cruise Line Holdings First Quarter 2024 Earnings Conference Call. My name is Joe, and I will be your operator. (Operator Instructions) As a remainder to all participants, this conference call is being recorded. I would now like to turn the conference over to your host, Sarah Inman. Ms. Inman, please proceed.
Thank you, Joe, and good morning, everyone. Thanks for joining us for our first quarter 2024 earnings and business update call. I'm joined today by Harry Sommer, President and CEO of Norwegian Cruise Line Holdings; and Mark Kempa, Executive Vice President and CFO. As a reminder, this conference call is being simultaneously webcast on the company's Investor Relations website at www.nclhltd.com/investors. Throughout the call, we will refer to a slide presentation that can be found on our Investor Relations website.
Both the conference call and presentation will be available for replay for 30 days following today's call. Before we
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