Royal Caribbean shares stall despite soaring cruise revenues

Royal Caribbean Group (NYSE:RCL) shares slipped lower, down close to 4%, despite an upbeat set of financials for its second quarter.

The cruise operator highlighted increased onboard spending and pre-cruise purchases, as well as ‘exceptional demand’ for its ocean-based vacations - strength which it said continues through 2024.

It comes as the Royal Caribbean stock had gained some 32% in the year to date, and is up around 56% for the past year.

"We are thrilled with the ongoing excitement for our incredible vacation experiences, which has continued to result in better bookings than prior years," chief executive Jason Liberty said in a statement.

"We have seen strength for all key products and are already taking more bookings for 2025 sailings than 2024."

Revenue for the quarter was 16.7% higher, at $4.11, comfortably beating Wall Steet forecasts of just over $4 billion. Net income increased to $854 million, from $459 million last year.  On a per share basis, this equated to $3.11 versus $1.70 a year ago.

The company highlighted that passenger ticket revenue was up 18% at $2.89 billion, whilst on-board other spending was up 13% to $1.22 billion.

Royal Caribbean brought back its dividend, with shareholder payouts returning for the first time since Covid.

Looking ahead, the company set a more bullish outlook – forecasting full-year profit outlook to $11.35 to $11.45 per share.

In New York, the stock was down $6.57 or 3.99% changing hands at $158 each.