TOP NEWS: Carnival shares fall but hails record quarterly bookings

(Alliance News) - Carnival PLC shares suffered on Monday despite reporting record revenue and its ...

Alliance News 26 June, 2023 | 3:39PM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Carnival PLC shares suffered on Monday despite reporting record revenue and its net loss narrowing in its second quarter.

Shares in Carnival dropped by 12% at 974.80 pence in London on Monday.

In the three months ended May 31, the cruise operator recorded a net loss of USD407 million, narrowing markedly from USD1.83 billion a year prior. For the six months, Carnival's net loss narrowed to USD1.10 billion from USD3.73 billion in the year prior.

The company said it recorded second quarter revenue of USD4.91 billion, jumping from USD1.83 billion a year prior. Carnival said this was achieved by an increase in passenger ticket revenue to USD3.14 billion from USD1.29 billion, and onboard ticket revenue rising to USD1.77 billion from USD1.12 billion the year before.

Chief Executive Officer Josh Weinstein said: "We reached a meaningful inflection point for revenue this quarter, with net yields surpassing 2019's strong levels, and we achieved positive operating income, cash from operations and adjusted free cash flow."

Carnival swung to an adjusted earnings before interest, tax, depreciation and amortisation for the second quarter of USD681 million, from a loss of USD928 million a year before.

Available lower berth days in this second quarter increased by 34% to 22.3 million, from 16.7 million.

ALBD is the standard passenger capacity metric used in the cruise industry.

Total operating expenses increased by 24% to USD4.79 billion from USD3.87 billion the year prior.

The company said that its total bookings made during the quarter reached an all-time high.

"Booking volumes for the second quarter exceeded the first quarter's booking volumes, which was the previous record high," Carnival explained.

Looking ahead to the rest of the year, prices for advanced bookings are ahead of pre-virus levels at constant currency, despite losing St Petersburg as a "marquee destination" amid the war in Russia.

Carnival also introducing its SEA Change Program, with targets reflecting its strategic goals, for a three-year period ending in 2026.

The programme focuses on heightening sustainability by reducing its carbon intensity by 20% compared to 2019, increasing its Ebitda by 50% compared to its 2023 June guidance, and doubling its adjusted return on invested capital to 12%.

In June, the company said it expected to swing to an adjusted Ebitda between USD4.10 billion and USD4.25 billion for financial 2023, compared to its loss of USD1.68 billion in financial 2022.

"We are excited about all the opportunities ahead and the potential to create outsized value for our shareholders as we work towards our 2026 targets," said CEO Weinstein.

Carnival estimates occupancy at 100% or higher for its financial 2023 as compared to 75% in the year before

By Will Neill, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Carnival PLC 1,060.50 GBX 0.14

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures