Raphael Stevens

More stories

  • 138 Shares119 Views

    in Business

    Cinemark to add 20 ScreenX locations in push for premium moviegoing

    Cinemark is adding 20 new ScreenX theaters to its portfolio, expanding its partnership with South Korea-based CJ 4DPlex.
    CJ 4DPlex Americas CEO Don Savant said six of those new screens will be open in time for the openings of “Wicked: For Good” and “Avatar: Fire and Ash.”
    While premium large format receipts still represent a small portion of the overall box office, it’s a growing segment of the business.

    ScreenX is the world’s first multi-projection cinema with an immersive 270 degree field of view.

    Singing witches and blue aliens are set to hit the big screen before the end of the year and bring in droves of moviegoers. Cinemark is preparing for the high demand by adding more unique premium screens to its U.S.- and Latin America-based locations.
    On Wednesday, the third-largest U.S. cinema chain announced it’s adding 20 new ScreenX theaters to its portfolio, expanding its partnership with the South Korea-based CJ 4DPlex. Eighteen of those screens will be built in the U.S.

    The expansion marks ScreenX’s first foray into Latin America.
    ScreenX is a premium film format that utilizes additional displays on the right and left walls of the auditorium, called wings, to create a 270-degree panoramic field of view. Cinemark already has six ScreenX locations and expects to open six more before the end of the year.
    “That’s been a big goal for us, to get as many theaters open for the last part of the year for ‘Wicked: For Good’ and, of course, ‘Avatar: Fire and Ash,’ which is such a seminal movie for all of the industry,” Don Savant, CEO of CJ 4DPlex Americas, told CNBC.
    CJ 4DPlex and Cinemark entered into a six-theater beta test together in 2022, but with the dual writers and actors strikes delaying production and theatrical releases, it took longer to expand the number of locations domestically, Savant said.
    “They just needed to see a consistent flow of content,” he said.

    The investment from Cinemark in adding more ScreenX theaters is part of a wider trend in the theatrical industry. In the wake of the pandemic, moviegoers have gravitated more and more toward seeing films on premium large format screens. These locations, often referred to as PLFs, offer an elevated viewing experience and charge higher ticket prices. The physical screens are often bigger than traditional movie screens or have auditoriums that feature higher-quality sound systems or seating options.
    CJ 4DPlex is also the company behind 4DX movie theaters, auditoriums with motion seats, practical effects and sensory elements to immerse viewers in a movie.
    Savant said the company is focused on “differentiating cinema” and providing audiences with experiences they can’t get from streaming offerings or in-home entertainment systems.
    While PLF receipts still represent a small portion of the overall box office, it’s a growing segment of the business. And moviegoers have demonstrated they’re willing to pay more for these experiences.
    So far this year, premium tickets have represented 22% of domestic sales, according to movie data firm EntTelligence. The average cost of an adult ticket year to date for a PLF is $17.61, nearly a dollar higher than the same ticket during the end of 2024.
    Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal is the distributor of “Wicked: For Good.”

    Don’t miss these insights from CNBC PRO More

  • 125 Shares119 Views

    in Business

    Architecture firms report decline in billings for commercial real estate

    The AIA/Deltek Architecture Billings Index (ABI) remained in negative territory in June with a score of 46.8, down from 47.2 in May. Anything below 50 is considered negative sentiment. 
    “Business conditions were soft nationwide in June, with a slight billing increase in the South for the first time since October,” said Kermit Baker, chief economist at AIA, the American Institute of Architects.
    One bright spot was inquiries into new projects, which increased for the second consecutive month and grew at the strongest pace since last fall.

    Two architecture teachers discuss a student’s final project work.
    Erdark | E+ | Getty Images

    A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.
    Architecture firms are reporting a drop in billings as concerns about the broader economy and tariffs impact commercial real estate development and spending.

    The AIA/Deltek Architecture Billings Index (ABI) remained in negative territory in June with a score of 46.8, down from 47.2 in May. Anything below 50 is considered negative sentiment. 
    “Business conditions were soft nationwide in June, with a slight billing increase in the South for the first time since October,” said Kermit Baker, chief economist at AIA, the American Institute of Architects. “Other regions saw declining billings, though at a slower pace. While all specializations experienced softer billings, the decline slowed for commercial/industrial and institutional firms. Multifamily firms faced the weakest conditions, with further declines.”

    Get Property Play directly to your inbox

    CNBC’s Property Play with Diana Olick covers new and evolving opportunities for the real estate investor, delivered weekly to your inbox.
    Subscribe here to get access today.

    One bright spot was inquiries into new projects, which increased for the second consecutive month and grew at the strongest pace since last fall with a score of 53.6. This suggests that clients are starting to send out requests for proposals and will start working with architecture firms on potential projects. 
    AIA notes that these inquiries do not necessarily translate into actual projects. The value of newly signed design contracts also fell for the 16th straight month. Billings are not likely to improve until the value of these new design contracts also sees gains. 
    The AIA also put out its midyear forecast:

    First the good news: In spite of stubbornly high long-term interest rates, inflation rates stalled above the Federal Reserve Board’s target, falling consumer confidence scores, disappointing levels of home building activity, rising tariff rates for many inputs to construction, and construction labor shortages exacerbated by restrictive immigration policies, the outlook for the remainder of the year and into 2026 is largely unchanged from where it was at in the beginning of the year.  
    The bad news: The outlook for spending entering the year was very pessimistic. 

    The AIA forecasts that overall spending on nonresidential buildings, not adjusted for inflation, will increase only 1.7% this year and grow very modestly to just 2% next year. 
    Spending on the construction of manufacturing facilities, which had been a bright spot in recent years, is now expected to decline 2% this year, with an additional drop of 2.6% next year. Institutional facilities are expected to be the strongest sector with projected gains of 6.1% this year and another 3.8% in 2026.
    In addition to a slowing economy, unclear and constantly changing tariff policy is creating growing uncertainty in the architect, engineer and construction services industry. 
    “Not knowing what products will cost in the future, whether they will be available, how these changes might affect their supply chain, and whether they will provoke a trade war with the exporting countries are all questions that the AEC industry is asking before proceeding with planned projects,” according to the report. 

    Don’t miss these insights from CNBC PRO More

  • 150 Shares109 Views

    in Finance

    Why it appears Washington is becoming friendlier toward crypto ETFs under Trump

    Attitudes on Capitol Hill toward exchange-traded funds and cryptocurrency may be changing. 
    Teucrium CEO and CIO Sal Gilbertie told CNBC’s “ETF Edge” regulators are becoming “more friendly” under President Donald Trump versus the Biden administration.

    “It’s a completely different environment in Washington right now,” Gilbertie said on Monday. “It’s more welcoming towards innovation — especially in crypto… and that’s a relief for us.”
    Gilbertie’s firm oversees the Teucrium 2x Long Daily XRP ETF (XXRP), which aims to return double the daily performance of the cryptocurrency XRP, according to the fund’s website. As of Tuesday’s close, the ETF is up 96% since its April 7 launch.
    Gilbertie said Teucrium’s role in pitching funds has not changed, but the reception from regulators has.

    ‘No animosity anymore’

    “The steps that we take to list the fund are the same, but there’s no animosity anymore,” Gilbertie said. “We’re not feeling like they’re antagonistic, that they’re looking for a problem, that they’re looking to actually go against whatever it is you’re trying to do.”
    With discussion of regulating newer market players, like ETFs and crypto, Gilbertie said investors need to be savvy and “understand what they’re owning” as new products enter the playing field.

    “The U.S. markets are the safest markets in the world for a reason, because we have tight and very thorough regulations,” he said. “But I think investors always need to be learning.”
    The Teucrium 2x Long Daily XRP ETF is geared toward investors with a high risk tolerance. In a news release this month, the firm noted the ETF “carries distinct risks” due to its use of leverage and warned it may not be suitable for all investors.
    Investment Company Institute CEO Eric Pan is also encouraged by what he sees in Washington — particularly when it comes to the Securities and Exchange Commission engaging with industry players. He thinks cryptocurrency regulation discussions are in the early stages.
    “They’re [regulators] very interested in hearing the views of groups like mine at the ICI. They want to talk to member firms. They want to understand what they’re seeing in the marketplace,” said Pan in the same interview, adding that this is a “really positive step.”
    The process of rolling out crypto-related ETF products is not much different from ETFs containing traditional stocks, bonds and commodities, Pan said. In both cases, he said regulatory certainty is important to mitigate risk for firms and investors, but he also wants to see room for innovation.
    “We like the idea that, through competition, firms [and] our members can come up with new products, try them out, see if there’s an interest in them,” Pan said. “That’s really what we’ve been advocating for, both on Capitol Hill and with the SEC.”
    The excitement comes just weeks after President Trump signed the GENIUS Act, a law regulating stablecoins. Stablecoins are a type of cryptocurrency that’s pegged to a fiat currency, like the U.S. dollar. The legislation marks a major legislative win for cryptocurrency and furthers Trump’s goal to make the U.S. the “crypto capital of the world.”

    Disclaimer More

  • 125 Shares99 Views

    in Finance

    UBS posts net profit beat as market volatility boosts trading

    UBS doubled its second-quarter net profit amid hikes at its investment banking and global wealth management operations.
    “Investor sentiment remains broadly constructive, tempered by persistent macroeconomic and geopolitical uncertainties,” UBS said Wednesday.
    The bank said client conversations and deal pipelines signaled a “high level of readiness among investors and corporates to deploy capital, as conviction around the macro outlook strengthens.”

    A logo of Swiss banking giant UBS in Zurich, on March 23, 2023.
    Fabrice Coffrini | Afp | Getty Images

    Swiss banking titan UBS on Wednesday doubled net profit year-on-year, beating expectations on the bottom line amid a boost from its investment bank and global wealth management divisions.
    Net profitable attributable to shareholders hit $2.395 billion in the second quarter, up from $1.136 billion in the same period of last year and beating a mean LSEG analyst forecast of $1.901 billion. The bank’s revenues over the period reached $12.112 billion, just below analyst expectations of $12.45 billion.

    Other second-quarter highlights included:

    Return on tangible equity was 11.8%, compared with 8.5% in the March quarter.
    CET 1 capital ratio, a measure of bank solvency, was 14.4%, after hitting 14.3% in the first three months of the year.

    The lender’s global markets unit of its investment banking arm achieved a 25% annual hike to $2.3 billion in revenues, “tracking the exceptional levels of volatility early in quarter.” The global wealth management division saw transaction-based income up 12% in the three months to the end of June.
    Yet UBS CEO Sergio Ermotti said that, while equity markets are now up 30% from the lows of April when the White House first disclosed its so-called reciprocal tariffs, activity levels reflected a “healthy” but not record environment.
    “So clients are still on a kind of wait-and-see attitude, not only institutional and private clients, but… also corporate clients. So you see the deployment of cash, but the conviction level is not yet to the extent that it will make it more constructive,” he told CNBC’s Carolin Roth on Wednesday.
    In its earnings release, UBS said the third quarter kicked off with “strong market performance in risk assets, particularly international equities, combined with a weak US dollar.”

    Net interest

    The lender’s net interest income (NII) — the difference between gains made of loans and investments, and the interest paid on deposits — was $1.965 billion, after UBS had guided for a “low single-digit percentage” of declines in the second quarter.
    In the third quarter, the bank expects “broadly stable” NII at its global wealth management and corporate bank divisions in Swiss francs, while “in US dollar terms, this translates to a sequential low single-digit percentage increase.”
    “The outlook suggests that NII has finally troughed and existing financial targets have been reiterated, but there is no update on capital return plans and it appears UBS’ lobbying efforts on recent Swiss capital proposals is set to continue,” Citi analysts said in a note following the results release.

    The NII performance is of particular concern to investors, given Switzerland’s June return to 0% interest rates in a broader battle to stave off the fall in national inflation and the strength of the Swiss franc.
    “For the time being, it’s going to be difficult to see that [interest] rates will go up,” Ermotti said. “The economy is still quite resilient and, and inflation has not abated to the level necessary, probably, to take actions.”
    UBS’ integration of embattled rival Credit Suisse, which it took over in 2023, “remains on track,” with one-third of Swiss client accounts now migrated and 70% of the expected $13 billion gross savings implemented, UBS said Wednesday. The bank otherwise said it has completed $1 billion in share buybacks in the first half of the year, with another $2 billion in repurchases to follow in the second six-month stretch.

    U.S. tariffs

    UBS shares have been on a bumpy ride this year, with the lender suffering as a result of its exposure to U.S. markets in the wake of Washington’s imposition of so-called reciprocal tariffs on most global trade partners, which have triggered uncertainty over the outlook for the world’s largest economy.
    “Investor sentiment remains broadly constructive, tempered by persistent macroeconomic and geopolitical uncertainties,” UBS said Wednesday. “Against this backdrop, our client conversations and deal pipelines indicate a high level of readiness among investors and corporates to deploy capital, as conviction around the macro outlook strengthens.”
    “People need to see the endgame of all these [trade] discussions,” Ermotti said. “Probably there is a little bit of a news fatigue.”
    Domestically, UBS has been trapped in a drawn-out row with Swiss authorities, which in June proposed strict new capital rules requiring the bank to hold an additional $26 billion in core capital. The measures are particularly meant to address concerns over UBS’ ability to buffer potential losses at its foreign units. Following UBS’ takeover of Credit Suisse, Swiss regulators assessed the lender has become “too big to fail” and would drag down Switzerland’s national economy and financial system in the event of its default.

    UBS has been fighting the designation and in June said it supported “in principle” the regulatory proposals, while disagreeing with the “extreme” increase in capital requirements, which it estimates would push it to hold around $42 billion in additional CET1 capital in total.
    Higher capital requirements can considerably diminish a bank’s balance sheet and credit supply, dampen risk appetite and potentially impact availabilities of discretionary funds.
    In late June, a Swiss parliamentary committee backed a motion that could delay some of the UBS banking proposals, according to Reuters.
    Asked on the new capital requirement proposals on Wednesday, Ermotti said UBS must remain focused on finalizing the Credit Suisse integration against this backdrop.
    “It’s very much clear to me that we will need to see exactly when the proposals are finalized, approved, and then we will consider appropriate actions to protect the interests of our shareholders,” he said. More

  • 175 Shares169 Views

    in Business

    Starbucks same-store sales fall again, but CEO Niccol says turnaround is ahead of schedule

    Starbucks reported that same-store sales fell for a sixth straight quarter as CEO Brian Niccol tries to implement a turnaround strategy.
    The company beat Wall Street’s quarterly revenue estimates, and comparable sales in China rose.

    Consumers walk in front of a Starbucks coffee shop in Galeria Krakowska shopping mall in central Krakow, Poland, on July 11, 2025.
    Dominika Zarzycka | Nurphoto | Getty Images

    Starbucks on Tuesday reported its sixth straight quarter of same-store sales declines as the company implements a turnaround strategy.
    CEO Brian Niccol said in a statement that the company’s comeback is ahead of schedule, based on his past experience, which includes turning around Chipotle Mexican Grill after a series of food-safety scandals.

    “While our financial results don’t yet reflect all the progress we’ve made, the signs are clear — we’re gaining momentum,” Niccol said in a prerecorded video published with the earnings report. 
    Shares of the company rose 4% in extended trading.
    Here’s what the company reported for the quarter that ended June 29 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

    Earnings per share: 50 cents adjusted. It was not immediately clear if it was comparable to the 65 cents expected.
    Revenue: $9.5 billion vs. $9.31 billion expected

    Starbucks reported fiscal third-quarter net income attributable to the company of $558.3 million, or 49 cents per share, down from $1.05 billion, or 93 cents per share, a year earlier.
    Excluding restructuring costs and other items, the company earned 50 cents per share. A discrete tax item and a one-time investment hosting the company’s three-day event for U.S. store managers weighed on the company’s earnings per share by 11 cents.

    Net sales rose 4% to $9.5 billion. 
    But global same-store sales declined 2%, a steeper drop than estimates of a 1.3% decrease, according to StreetAccount estimates.
    However, Starbucks’ North American cafes performed better than expected. The chain’s North American same-store sales fell 2%, a smaller decline than the 2.5% projected by Wall Street, according to StreetAccount. Transactions fell 3%, but average ticket rose 1% in the quarter.
    “In the U.S., partner engagement is rising, customer connection scores are up, shift completion is at a record high, non-Starbucks Reward customer transactions returned to growth, and more coffeehouses are delivering positive transaction comps,” Niccol said in the video.
    On the company’s conference call, he told analysts that the company’s licensed stores on college campuses saw same-store sales increase, showing that younger consumers are reconnecting with the brand.
    To bring back customers, Starbucks is doubling down on hospitality. The chain is rolling out its “Green Apron Service” program, which emphasizes customer interactions. Executives have said that the program tested successfully, leading the company to accelerate its rollout.
    The chain is also building fewer new U.S. locations, instead focusing on improving its current cafes. In recent years, Starbucks had removed seats from many of its cafes, citing the shift to mobile ordering and drive-thru transactions. But Niccol wants to replace thousands of removed seats as part of a broader effort to make its cafes comfortable again.
    In China, the company’s second-largest market, Starbucks reported same-store sales growth of 2% for the quarter. Transactions climbed 6%, but average ticket fell. Starbucks has cut prices for its drinks in China to compete better with lower-priced rivals, such as Luckin Coffee.
    This quarter marked the first time in a year and a half that the company’s China business saw its same-store sales increase. Under pressure from increased competition, a weaker economy and the distraction of the struggling U.S. business, Starbucks has been weighing selling a stake in its China business, which overall could be valued at up to $10 billion, CNBC has previously reported.
    “We’ve received significant interest from more than 20 interested parties, and we’re evaluating options,” Niccol told analysts. “We remain committed to our China business and want to retain a meaningful stake.”
    Heading into the final quarter of the company’s fiscal year, Chief Financial Officer Cathy Smith said the company is “conservative” on how Starbucks’ results will look in the fiscal fourth quarter compared with the year-ago period. She cited an uncertain consumer environment, although she also noted the company’s excitement about its coming innovation and the return of the Pumpkin Spice Latte.
    Over the next year, Starbucks plans to invest $500 million in labor, including the rollout of the “Green Apron Service” program, according to Smith.
    Starbucks yanked its full-year forecast in October, shortly after Niccol took the reins of the company and months before Smith joined.
    Looking ahead to fiscal 2026, Starbucks has big plans. Niccol said the chain will launch protein cold foam, improved artisanal food options, coconut-water based drinks, a new Starbucks app and a “refreshed” Rewards program.
    The company plans to host an investor day in the fiscal second quarter of 2026.

    Don’t miss these insights from CNBC PRO More

  • 125 Shares179 Views

    in Business

    Nike loses head of North America women’s business to Athleta

    Athleta poached top Nike executive Maggie Gauger to become its next CEO — its third in two years.
    Gauger led Nike’s women’s business in North America and her departure is a blow to the sneaker giant, which is trying to grow its women’s segment.
    Since Elliott Hill took the helm of Nike last fall, he has made the women’s business a central part of his strategy as he works to turn around the business and return it to growth. 

    A Nike and Athleta store.
    Kylie Cooper | Reuters | Michael Brochstein | SOPA Images | LightRocket | Getty Images

    Gap’s Athleta has tapped the head of Nike’s women’s business in North America as its next CEO, delivering a blow to the sneaker company as it tries to win back more female shoppers. 
    Maggie Gauger, who has spent more than 20 years at Nike, is the third CEO hired to helm Athleta in the last two years as the women’s athleisure brand’s sales decline. She’ll replace Chris Blakeslee, the former Alo Yoga executive who was hired to replace Mary Beth Laughton in 2023. 

    Under Blakeslee’s direction, Athleta partnered with high-profile athletes such as swimmer Katie Ledecky and WNBA star Kate Martin, and won over new shoppers with different types of products. However, the strategy has not translated with Athleta’s existing customer base. For four out of the past six quarters, the brand’s revenue and comparable sales dropped, which dragged down its parent company’s overall performance. 
    “Over the past two years, Chris has led the early stages of Athleta’s reset, recentering the brand to win with innovative performance product and refining the brand’s point of view, helping to position Athleta for the future,” Gap CEO Richard Dickson said in a news release.
    “We are thrilled for Maggie Gauger to join as CEO of Athleta as we look to accelerate the brand’s reinvigoration. Maggie blends proven business transformation capabilities, deep consumer centricity, product fluency, and a heartfelt commitment to empowering women and girls. This combination of skills and experiences will equip her to lead Athleta into its next chapter of growth.”
    Gauger’s decision to become Athleta’s next CEO is a big win for a brand so squarely focused on serving female shoppers, but a major loss for Nike at a pivotal time for the sneaker giant. 
    Since Elliott Hill took the helm of Nike last fall, he has made the women’s business a central part of his strategy as he works to turn around the business and return it to growth. 

    In its first Super Bowl ad in decades, Nike targeted female athletes in its “So Win” campaign. It later announced it would be partner with Kim Kardashian’s activewear line Skims as it looked to get an edge over competitors such as Athleta, Alo Yoga and Vuori. 
    Nike has said previously that about 40% of its customers are women, but most apparel brands prefer to have more female consumers than male because they tend to shop more and spend more on clothes. Plus, the gender gap has given Nike’s competitors a foothold in the athletic apparel business, which could be a growth area for the company. 
    Gauger was in charge of closing that gender gap in Nike’s most important market, but now that work will fall to a new leader, adding another layer of transition at a vulnerable time for company. 
    Still, the company’s leadership bench is still well stacked. Amy Montagne, the current president of Nike, previously served as the head of the brand’s global women’s division and has been with the retailer for 20 years.
    Gauger is slated to take on the new role on Aug. 1 and Blakeslee will stay on as an advisor to “support a smooth transition,” the company said in a press release. Nike did not respond to CNBC’s request for comment. 

    Don’t miss these insights from CNBC PRO More

  • 163 Shares199 Views

    in Business

    United Airlines flight attendants reject contract with immediate raises of at least 26%

    United Airlines and the flight attendants’ union reached a tentative agreement for a new labor deal in May.
    The tentative labor deal called for immediate raises of at least 26%, as well as other quality-of-life improvements.
    Of the 92% of eligible voters who cast ballots, 71% voted against the contract, the union said.

    United Airline flight attendants picketed outside Terminal B at Logan Airport, seeking a new contract.
    John Tlumacki | Boston Globe | Getty Images

    United Airlines flight attendants voted down a new labor contract that called for immediate raises of at least 26% and other quality-of-life improvements, their union said Tuesday.
    The flight attendants’ last raise was in 2020. Their union, the Association of Flight Attendants-CWA, which represents the airline’s some 28,000 cabin crew members, and the airline had reached a tentative agreement in May.

    “United Flight Attendants today voted to send a strong message to United Airlines management by rejecting a tentative agreement that didn’t go far enough to address the years of sacrifice and hard work to make the airline the success it is today,” said Ken Diaz, president of the union’s United chapter.
    He said the union will survey members on key improvements they want in another contract.

    Read more CNBC airline news

    Of the 92% of eligible voters who cast ballots, 71% voted against the contract, the union said.
    U.S. flight attendants have pushed for wage increases for years. Flight attendants at other airlines, pilots and other work groups secured new labor deals in the wake of the Covid-19 pandemic.
    United’s flight attendants voted last year to authorize the union to strike if a deal wasn’t reached. They had also sought federal mediation for the labor talks.

    The airline said in a statement that it will keep working with the union.
    “Our flight attendants are the best in the industry and this tentative agreement included numerous improvements and industry-leading pay,” United said in a statement. “While this vote will result in a delay and the AFA has outlined several steps to return to negotiations, including coordination with the National Mediation Board, we remain focused on getting our flight attendants the contract they deserve.”

    Don’t miss these insights from CNBC PRO More

  • 113 Shares179 Views

    in Business

    Royal Caribbean lifts full-year guidance on strong cruise bookings

    Royal Caribbean Cruise Group raised its full-year guidance.
    Royal Caribbean reported growth in bookings during the second quarter from the prior period, especially from travelers booking closer to their departure date.
    CEO Jason Liberty told CNBC the cruise company is adapting to take advantage of evolving consumer preferences.

    Royal Caribbean raised its full-year guidance Tuesday on the back of strong cruise bookings.
    The company now expects 2025 earnings of between $15.41 and $15.55 per share on an adjusted basis, up from prior earnings per share guidance of $14.55 to $15.55.

    CEO Jason Liberty noted traveler preferences are evolving, saying there’s an increase in people choosing to vacation more frequently and are opting for experience-driven travel. Royal Caribbean said 75% of consumers report they plan to spend the same amount or more on leisure travel over the next 12 months.
    “Our experiences are designed to meet these evolving expectations,” Liberty said.
    Royal Caribbean reported growth in bookings during the second quarter from the prior period, especially from travelers booking closer to their departure date. It’s a trend Liberty attributed to the growing number of younger cruisers, with millennials or younger generations now accounting for about half of total guests. And, they’re willing to pay a premium, Liberty added.
    “In the weeks coming up to a sailing, the very few cabins that we would have left on each voyage, people not only were trying to get those cabins, but they were willing to pay considerably more money to ensure they get the vacation experience that they’re looking for,” Liberty said in an interview.
    The company reported second-quarter adjusted earnings per share of $4.38 on revenue of $4.54 billion. Wall Street had expected earnings per share of $4.09 and revenue of $4.55 billion, according to estimates compiled by LSEG.

    The cruise line’s income rose to $1.2 billion, or $4.41 per share, an increase from $854 million, or $3.11 per share, a year earlier.
    Meanwhile, the cruise line reported capacity was up 5.8% compared to the year before, with 2.3 million guests taking a Royal Caribbean cruise during the second quarter.
    Still, shares of Royal Caribbean fell 5% Tuesday.
    The company noted bookings for its new ships launching this year, Star of the Seas and Celebrity Xcel, are performing well.
    “The strong demand we are seeing across our new ships and land-based destinations reinforces that our strategy is working and resonating with today’s traveler,” Liberty said.
    — CNBC’s Krysta Escobar and Dawn Giel contributed to this report.

    Don’t miss these insights from CNBC PRO More