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Capacity Growth, Cost Savings and Onboard Drive Royal Caribbean’s Q3 Earnings

Increased capacity, cost savings and onboard spend drove Royal Caribbean’s Q3 earnings, according to the company’s filing today, posting revenues of GAAP net income of $228.8 million on revenues of $2.5 billion, including a $411 million write-down on Pullmantur, compared to net income of $490 million on revenues of $2.4 billion. including $308 million in restructuring charges for the same period last year.

Net revenue per passenger day was $190.11 this year, up from $188.39 last year. Net ticket revenue per passenger day was $143.54, down from $144.73 last year, but onboard spend was up at $46.57 per day this year from $43.66 last year.

Gross revenue per passenger day was $247.93 this year, compared to $248.74 last year. Gross ticket revenue per passenger day was $184.14 this year, down from $186.15 last year, while gross onboard spend was up at $63.79 per day this year from $62.69 last year.

Each passenger spent an average of $1,797.52 for their cruise ticket and onboard this year, compared to $1,802.85 last year.

Excluding the write down this year and the restructuring charge last year, Royal Caribbean would have posted GAAP net earnings of $640 million for Q3 2015 and $798 million for Q3 2014, or earnings per share of $2.91 and $3.57 respectively, according to estimates by Cruise Industry News.

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