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RCI Profits down 44%

djneph

By djneph,
in Royal Caribbean International

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gtalum

gtalum

Posted
Posted

Not only that, they're forecasting a loss for Q4. I'm guessing that's primarily because they're paying for the financing on Oasis but won't actually get to book any revenue from her for another month. They should be profitable again in Q1 2010.

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PeterPan

PeterPan

Posted
Posted

Let's try and keep this in perspective:

 

Profits down 44% from a year ago.

Showed a profit of $1.07/share in 3rd quarter.

Predicting a profit for the year, after a slight loss in 4th quarter.

 

So, RCL in fact is showing a profit. Better than many companies right now.

 

Yes, you can look at this as either positive news, or negative news, your choice.

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Tyron

Tyron

Posted
Posted
It will be interesting to see if they can fill that BIG White Elephant !!

 

 

 

 

 

jj......

 

u are obsessed with the oasis and whether or not it'll be successful or not....:rolleyes: can u just wish them well and leave it @ that.....

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gtalum

gtalum

Posted
Posted
Eliminate commissions and save ONE BILLION DOLLARS!!!

 

How much will it cost them to save that $1 Billion? Advertising costs money, you know (as do the extra employees you so nonchalantly threw in). I suspect TA agreements are a net positive for RCI (and everybody else for that matter), or else you'd be right and they'd have thrown them out a long time ago.

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Sue L

Sue L

Posted
Posted
How much will it cost them to save that $1 Billion? Advertising costs money, you know (as do the extra employees you so nonchalantly threw in). I suspect TA agreements are a net positive for RCI (and everybody else for that matter), or else you'd be right and they'd have thrown them out a long time ago.

 

 

Save your breath, all he knows is one tune....bashing TA's!!!

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The Big Booper

The Big Booper

Posted
Posted

Actually, all financing on a newbuild like Oasis is capitalized and added to the construction cost. (consruction period financing, per American accounting rules.) The ship will be depreciated on a multi year basis starting when it is put into service and that yearly charge will include all construction costs including financial costs.

 

Once the ship goes into service then interest expense paid after that is expensed as paid.

 

So the poor projected results for the 4th qtr should not include interest paid while the ship was being built, since revenue miles don't start until Dec. at which time there will be income from the Dec cruises.

 

Matching of revenues and costs, the basis of proper accounting.

 

End of lesson, accounting 101.

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ubdkjrb

ubdkjrb

Posted
Posted
Save your breath, all he knows is one tune....bashing TA's!!!

 

Not fair, Sue L (I've always wondered; is the L for Liberty Travel?). TA's are more than welcome to stick around after commissions are eliminated, just as you did when airline commissions virtually disappeard. You will simply have to charge for your services - you know - great advice, being the advocate for the traveller against the mighty cruiseline when problems arise, changing cabins, applying price drops, etc. You would just be being paid by the cruiser and not the cruiseline.

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Tyron

Tyron

Posted
Posted

* Projects Q4 loss on weakness in cruise pricing

* Pricing for cruises remains weak

* Shares stumble on the NYSE

(Recasts; updates shares, adds byline)

By Deepa Seetharaman

NEW YORK (Reuters) - Royal Caribbean Cruises Ltd posted a 44-percent drop in net income and projected a slight fourth-quarter loss Tuesday, citing soft pricing for its cruises and the weak Florida economy.

Shares fell over 7 percent to $19.09 on the New York Stock Exchange.

The world's second-largest cruise operator forecast a fourth-quarter loss of 5 cents per share. The average analyst estimate was for a profit of 4 cents per share, according to Thomson Reuters I/B/E/S.

The loss would be due in part to the weakness Florida's economy, the company said. Royal Caribbean draws a large number of its guests from the state at year-end.

The Miami-based company also said it expects 2009 earnings per share of 70 cents, compared with the average analyst estimate of 74 cents per share.

Royal Caribbean reported third-quarter net income of $230.4 million, or $1.07 per share, compared with $411.9 million, or $1.92 per share a year earlier. The results surpassed the average analyst estimate of $1.00 per share.

Third-quarter revenue slid 14.3 percent to $1.8 billion from $2.1 billion a year earlier, in line with analysts' estimates.

The company said 2010 should see net revenue yields improve over the year earlier. Net revenue yields are a measure of performance in the cruise industry.

Talk of an economic recovery and upward momentum in the broader market have pushed shares of Royal Caribbean up 250 percent since early March. But fears of the H1N1 flu virus and high unemployment in the United States have posed obstacles to the industry's recovery.

"Like many other travel companies, we saw more strength than we expected during our peak season but have been experiencing more pricing pressure on some of our traditionally softer fall season sailings," said Chief Executive Richard Fain, in a statement. (Reporting by Deepa Seetharaman, editing by Gerald E. McCormick)

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Sue L

Sue L

Posted
Posted
Not fair, Sue L (I've always wondered; is the L for Liberty Travel?). TA's are more than welcome to stick around after commissions are eliminated, just as you did when airline commissions virtually disappeard. You will simply have to charge for your services - you know - great advice, being the advocate for the traveller against the mighty cruiseline when problems arise, changing cabins, applying price drops, etc. You would just be being paid by the cruiser and not the cruiseline.

 

Nope L is for my last name . Airlines, still do pay commissions to the larger agencies. The cruiselines are doing more for us, not less, sorry you won't get your wish. Most ta's do the above now and don't charge the client.

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aurelius180

aurelius180

Posted
Posted
Nope L is for my last name . Airlines, still do pay commissions to the larger agencies. The cruiselines are doing more for us, not less, sorry you won't get your wish. Most ta's do the above now and don't charge the client.

 

 

And you still find time to dispense your invaluable information on here for free. I'm one who greatly appreciates it. :)

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coxswain

coxswain

Posted
Posted
Not fair, Sue L (I've always wondered; is the L for Liberty Travel?). TA's are more than welcome to stick around after commissions are eliminated, just as you did when airline commissions virtually disappeard. You will simply have to charge for your services - you know - great advice, being the advocate for the traveller against the mighty cruiseline when problems arise, changing cabins, applying price drops, etc. You would just be being paid by the cruiser and not the cruiseline.

 

 

 

Whit impartial advice as well.

 

 

 

And hopefully with the new rules coming out from the FTC will make TA's open and transparent !!

 

 

 

 

 

jj.......

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Sue L

Sue L

Posted
Posted
Whit impartial advice as well.

 

 

 

And hopefully with the new rules coming out from the FTC will make TA's open and transparent !!

 

 

 

 

 

jj.......

 

 

what do you think we are hiding? I can't think of one thing that I would hide from anyone.

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TEXASMUNK

TEXASMUNK

Posted
Posted

But I always get this vision of the bashers sitting in a dark, dank, dingy basement, with a sweat stained undershirt typing their vitriol and hate spewing dogma...

 

While the rest of us enjoy the cruise experience...no matter what size the ship might be....or the cruise line you prefer.

 

Take pity on them! Imagine in this economy any EVIL company turning an EVIL profit for the EVIL shareholders, all the while burning EVIL oil!!!!! It must make them nuts!

 

Then you get new ships that burn less fuel per passenger, which, despite the best efforts of some, will cause them to make even more EVIL profits!

 

The Horror!!!!

 

Nice job RCI, in this economy anyone making a profit is doing things right!

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