Royal Caribbean Cruise Line's Freedom of the Sea, the world's largest pleasure ship, made its maiden call in Jamaica docking at the Montego Bay Cruise Shipping Pier on June 8, 2006.
- File

MIAMI, Florida (AP):

Royal Caribbean Cruises Limited, the world's second-largest cruise company whose ships call frequently at Jamaica's ports, says its third-quarter profit dipped eight per cent from a year-ago period that included a hefty gain.

Net income fell to US$345.4 million (€272.05 million), or US$1.63 (€1.28) per share, from US$374.7 million (€295.13 million), or US$1.64 (€1.29) per share, during the same period last year, which included a one-time gain of US$44.2 million (€34.81 million), or 19 cents per share, related to the Miami-based company's investment in First Choice Holidays PLC.

Quarterly revenue rose nine per cent to US$1.64 billion (€1.29 billion) from US$1.5 billion (€1.18 billion) last year. Passenger ticket sales also climbed nine per cent to US$1.21 billion (€0.95 billion) from US$1.11 billion (euro0.87 billion), while onboard and other revenue gained nine per cent to US$425.1 million (€334.83 million) from US$391.8 million (€308.6 million).

Occupancy rates were almost identical to last year's level.

Analysts polled by Thomson Financial were expecting earnings of US$1.59 (€1.25) per share on sales of $1.63 billion (€1.28 billion).

Looking ahead, the company said that while it traditionally has losses in the fourth quarter, it expects "a very good fourth quarter 2006" based on strong yield growth and lower costs.

The company said it expects its Pullmantur acquisition to hurt fourth-quarter earnings by U.S. two to three cents per share.

Its fourth-quarter net income is seen in a range between 20 cents and 25 cents per share. Royal Caribbean bought Madrid-based cruise and tour operator Pullmantur SA for about US$552.8 million (euro435.41 million), plus about US$347.1 million (euro273.39 million) in debt.

Taken from the Financial Gleaner, Friday, November 3, 2006