ROYAL CARIBBEAN

ROYAL CARIBBEAN weekly special report based On 1.00 Lot Calculation:

CRUISE COMPANY SECTOR:

• MARKET SIZE ($7.9 Billion): The global cruise market size was valued at USD 7.90 billion in 2022. The market is expected to expand at annual growth rate of 11.0% from 2022 to 2028.
• MARKET GROWTH POTENTIAL (TO INCREASE AT A COMPOUNDED ANNUAL GROWTH RATE OF ~11.0%): The global cruise market is expected to expand at a compound annual growth rate of 11.0% from 2022 to 2028.

ROYAL CARIBBEAN

• THE COMPANY: Royal Caribbean Group operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, Azamara, and Silversea Cruises brands, which comprise a range of itineraries that call on approximately 1,000 destinations. As of February 25, 2022, it operated 64 ships. The company was founded in 1968 and is headquartered in Miami, Florida.
• ROYAL CARIBBEAN IS THE SECOND CRUISE SHIP OPERATOR WITH 35% MARKET SHARE: Carnival Cruise had by far the highest market share among cruise companies, at 45 percent. Second and third where Royal Caribbean Cruises LTD and Norwegian Cruise Line with 35 and 20 percent market share, respectively.

ROYAL CARIBBEAN (ANALYSIS AND EVENTS)

• FIRST QUARTER EARNINGS RESULTS: Royal Caribbean posted $2.88 billion revenue in the first quarter. In the prior-year quarter, Royal Caribbean reported revenues of $1.06 billion. Compared to 2019, net yields are expected to rise more than 10% in Q2. On the other hand, second-quarter operating costs (excluding fuel) are also anticipated to increase by 8.9%. For the full year, CEO Jason Liberty claims that the company will "deliver amazing vacation experiences to over 8 million guests at record yields." He projects load factor to return to historical levels in Q2 as Royal Caribbean continues to "benefit from a strong pricing environment." In addition to pricing, an enhanced fleet and onboard revenue growth initiatives will also drive the yield growth, he explained.
• PASSENGER TICKET DEMAND RISES: In the first quarter of 2023, passenger ticket revenues amounted to $1.89 billion, up from $651.9 million in the prior-year quarter. In the first quarter, the percentage of guests who were either new to brand or new to cruise surpassed 2019 levels by a wide margin.
• RECORD- BREAKING BOOKINGS: Bookings continue to surpass 2019 levels as well. 2023's wave season, a promotional period when guests are able to book cruises at discounted rates, "extended further into the year than ever before," according to Chief Financial Officer Naftali Holtz. Thousands more holidaymakers than usual have made bookings for one of the 64 ships in its fleet.

PRICE ACTION:

• Royal Caribbean stock currently trades roughly 40% below its January 2020 high ($135.65): Royal Caribbean was last trading at $87.00, and if full recovery follows recent all- time highs, the stock could see an upside of around ~56%. However, the price could decline further.

• ANALYST OPINION: Barclays forecasts $100. JPMorgan forecasts $100. Credit Suisse forecasts $104.

Royal Caribbean, June 6, 2023
Current Price:87.00

Example of calculation based on weekly trend direction for 1.00 Lot¹

1. 1.00 lot is equivalent of 1000 units
2. Calculations for exchange rate used as of 9:15 (GMT) 06/06/2023
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