Norwegian Cruise Line (NCL Corporation Ltd., "Norwegian" or "the Company") reported results for the quarter ended June 30, 2012. Improved revenue performance in the quarter coupled with business improvement initiatives resulted in a 14.1% increase in operating income to $87.0 million along with an 8.6% increase in Adjusted EBITDA to $135.1 million. Net Revenue increased 2.7% in the quarter due to an improvement in Net Yield and a 1.5% increase in Capacity Days. Net Yield increased 1.2% (1.9% on a Constant Currency basis) as a result of higher average ticket pricing.
Net Cruise Cost per Capacity Day decreased 1.3% (0.9% on a Constant Currency basis) as benefits from business improvement initiatives and efficiencies coupled with the timing of repairs and maintenance expense more than offset a 15% increase in the per metric ton cost of fuel to $684. Excluding fuel expense, Net Cruise Cost per Capacity Day decreased 5.1% (4.5% on a Constant Currency basis). "Our financial results for the quarter demonstrate healthy top line growth, albeit moderated by the impacts from pressures surrounding Europe. As expected, our deployment, which includes a record four ships in Europe, benefited the top line through higher ticket revenue with a slight offset in onboard spend," said Kevin Sheehan, President and CEO of Norwegian Cruise Line. "And the benefits from business improvement initiatives not only contributed to our financial results, but also to our ongoing commitment in improving the experience of our guests," continued Sheehan.
Interest expense was $48.9 million compared to $46.7 million in 2011 reflecting a write-off of $2.4 million of deferred financing fees in 2012. The Company posted a 23.3% increase in net income to $36.0 million on revenue of $583.2 million from $29.2 million on revenue of $568.6 million in 2011.