Summary
Carnival Corporation & plc reported solid financial performance for the six months ended May 31, 2017. Total revenues increased by 6.0% to $6.4 billion, driven by a 3.7% increase in capacity (ALBDs) and a 4.4% rise in constant currency net revenue yields. This growth was primarily fueled by strong performance in the North America segment, with notable price improvements in key itineraries like the Caribbean, Europe, and Alaska, as well as higher onboard spending. Despite an increase in operating costs and expenses, largely due to higher fuel prices and capacity expansion, the company managed to improve its operating income in the North America segment. However, the EAA segment experienced a decline in operating income due to foreign currency impacts and weaker performance in China. The company maintained a strong liquidity position with $11.9 billion available, providing confidence in funding future capital expenditures, including new ship deliveries. Investors should note the ongoing capacity expansion and the impact of fuel prices and currency fluctuations on profitability.
Financial Highlights
51 data points| Revenue | $3.94B |
| Cost of Revenue | $2.44B |
| Gross Profit | $1.51B |
| SG&A Expenses | $553.00M |
| Operating Expenses | $3.44B |
| Operating Income | $500.00M |
| Interest Expense | $50.00M |
| Net Income | $379.00M |
| EPS (Basic) | $0.52 |
| EPS (Diluted) | $0.52 |
| Shares Outstanding (Basic) | 724.00M |
| Shares Outstanding (Diluted) | 727.00M |
Key Highlights
- 1Total revenues for the six months ended May 31, 2017, increased by 6.0% to $6.4 billion, compared to $6.0 billion in the prior year period.
- 2Net revenue yields increased by 2.2% (4.5% on a constant currency basis) to $157.21, driven by higher passenger ticket prices and onboard spending.
- 3Capacity, measured in Available Lower Berth Days (ALBDs), increased by 3.7% to 40.4 million, reflecting new ship deliveries.
- 4Operating costs and expenses rose by 8.2% to $4.9 billion, significantly impacted by a $218 million increase in fuel costs.
- 5Net income for the six months decreased slightly to $730 million from $747 million in the prior year, impacted by higher operating costs and fuel prices.
- 6The company maintained a strong liquidity position with $11.9 billion available at May 31, 2017, to fund ongoing operations and capital expenditures, including shipbuilding commitments.
- 7Dividends declared per share increased to $0.40 for the three months ended May 31, 2017, from $0.35 in the prior year, indicating a commitment to returning capital to shareholders.