Royal Caribbean Group (NYSE: RCL) reported Q4 EPS of ($5.02), $0.18 better than the analyst estimate of ($5.20). Revenue for the quarter came in at $34.14 million versus the consensus estimate of $35.61 million.

Update on Bookings

Booking activity for the second half of 2021 is aligned with the Company's anticipated resumption of cruising. Pricing on these bookings is higher than 2019 both including and excluding the dilutive impact of future cruise credits (FCCs).

While the brands are still in the process of opening for sale the remainder of their 2022/2023 seasons, first and second quarter 2022 sailings have been open for some time. Cumulative advance bookings for the first half of 2022 are within historical ranges and at higher prices. This was achieved with minimal sales and marketing spend which the Company believes highlights a strong long-term demand for cruising.

Since the last business update, approximately 75% of bookings made for 2021 are new and 25% are due to the redemption of FCCs and the "Lift & Shift" program. The Company continues to provide guests on suspended sailings with the option to request a refund, to receive an FCC, or to "lift & shift" their booking to the following year.

As of December 31,2020, the Company had $1.8 billion in customer deposits of which 50% are related to FCCs. Since the suspension of operations, approximately 53% of the guests booked on cancelled sailings have requested cash refunds.

2021 Outlook

The Company's operation is still subject to the impact of COVID-19. Consequently, the Company cannot reasonably estimate its financial or operational results. Notwithstanding the foregoing, the Company expects to incur a net loss on both a US GAAP and adjusted basis for its first quarter and the 2021 fiscal year, the extent of which will depend on many factors including the timing and extent of the return to service.

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