Norwegian Cruise Lines Q1 earnings gain as Prestige Merger pays

Norwegian Cruise Lines said its adjusted earnings for the first quarter rose more than 17 percent, helped in part by the $3.02 billion acquisition of Prestige Cruise Holdings in November last year.

The company said it had identified greater synergies than it expected from the combination of $75 million for 2015 and $115 million for 2016. The company had previously communicated $15 million in revenue synergies and $25 million in cost savings for a total of $40 million for 2015.

In Q1 adjusted earnings per share were $0.27 on net income of $62.6 million, exceeding the company’s guidance of $0.20 to $0.24. On a GAAP basis, the diluted loss per share and net loss were $0.10 and $21.5 million, respectively, primarily due to transaction and integration related costs.

The company, a unit of Genting Hong Kong, said its adjusted earnings had improved due to a lower-than-expected interest expense and better- than-anticipated net yield.

The adjusted net yield increased 18.9 percent, driven by the addition of Prestige’s upper premium Oceania Cruises and luxury Regent Seven Seas Cruises brands.

Adjusted net revenue for the period increased 46 percent to $728.9 million as a result of the acquisition of the Oceania Cruises and Regent brands as well as approximately one month of incremental sailings from Norwegian Getaway which debuted in early 2014.