Carnival Corporation & plc, the world’s largest cruise shipping group, has reported a strong rise in net profit in the three months to 28 February.
Group net profit rose to $142 million from $49 million in the same period a year earlier, while revenues rose to $3.65 billion from $3.53 billion
Net revenue yields, defined as net revenue per available lower berth day or "ALBD," increased 5.7% in constant currency, which was better than the company's December guidance of up 3.5% to 4.5%. Gross revenue yields decreased 0.4 % in current dollars due to changes in currency exchange rates, the Anglo-American company said in a statement.
Net cruise costs excluding fuel per ALBD increased 1.6% in constant currency and were lower than December guidance, up 2.5% to 3.5%, due to the timing of expenses between quarters.
Gross cruise costs including fuel per ALBD in current dollars decreased 6.0% due to changes in fuel prices and currency exchange rates. Changes in fuel prices (including fuel derivatives), net of changes in currency exchange rates, increased earnings by $0.03 per share.
President and Chief Executive Officer Arnold Donald commenting on these results: “Our teams delivered another strong quarter of operational improvement by creating increased demand for our brands and leveraging our scale which resulted in revenue yield improvement approaching 6 % and the near doubling of first quarter adjusted earnings. We thank our millions of loyal guests and valued travel professional partners around the globe for their patronage and support.”
“Our ongoing guest experience innovations coupled with our increasingly effective marketing and communication efforts have driven additional demand for our brands, resulting in a strong booked position. The lower levels of inventory remaining for sale for the balance of the year, particularly for our peak summer period, positions our brands well for continued revenue yield growth and builds confidence in our full year earnings forecast.”
“Additionally, the underlying strength of our operating performance, leading to sustained earnings and cash flow growth, has accelerated the return of capital to shareholders through our stepped up share repurchase program. Since resuming the share repurchase program, we have bought back approximately 27 million shares returning $1.3 billion to shareholders in the last six months.”
