Summary
Carnival Corporation & plc reported strong financial performance for the three and six months ended May 31, 2018. Total revenues saw a significant increase driven by higher passenger ticket revenues and onboard spending, supported by price improvements and increased occupancy across key markets, particularly in Europe and Alaska. Despite rising operating costs, notably higher fuel prices and dry-dock expenses, the company managed to improve its operating income, largely due to substantial growth in the Europe and Asia segment, which more than offset a slight decrease in the North America and Australia segment. The company also demonstrated robust cash flow generation from operations, which was utilized to fund its extensive new shipbuilding program and fleet enhancements. Carnival successfully managed its debt, issuing new debt while repaying existing obligations, and continued its commitment to shareholder returns through dividends and share repurchases. The company maintains a strong liquidity position and anticipates sufficient cash flows to meet its future capital commitments and operational needs, reinforcing investor confidence in its ongoing financial health and growth strategy.
Financial Highlights
51 data points| Revenue | $4.36B |
| Cost of Revenue | $2.68B |
| Gross Profit | $1.68B |
| SG&A Expenses | $605.00M |
| Operating Expenses | $3.80B |
| Operating Income | $559.00M |
| Interest Expense | $49.00M |
| Net Income | $561.00M |
| EPS (Basic) | $0.79 |
| EPS (Diluted) | $0.78 |
| Shares Outstanding (Basic) | 714.00M |
| Shares Outstanding (Diluted) | 715.00M |
Key Highlights
- 1Total revenues increased by 10% to $4.36 billion for the three months ended May 31, 2018, compared to $3.95 billion in the prior year, driven by higher ticket prices and increased occupancy.
- 2Net income for the three months ended May 31, 2018, rose to $561 million ($0.78 per diluted share) from $379 million ($0.52 per diluted share) in the same period last year, reflecting improved profitability.
- 3Operating costs and expenses increased by 10% to $2.7 billion, primarily due to higher fuel prices, dry-dock expenses, and capacity increases.
- 4Operating income grew by 12% to $559 million for the quarter, showcasing the company's ability to manage costs and leverage revenue growth.
- 5Cash flow from operating activities for the six months ended May 31, 2018, increased by 8.4% to $3.1 billion, providing strong internal funding for investments.
- 6Capital expenditures for the six months ended May 31, 2018, totaled $2.2 billion, primarily for new shipbuilding and ship improvements, indicating continued investment in fleet expansion and modernization.
- 7Customer deposits increased significantly to $5.3 billion, reflecting strong future booking trends and providing a stable source of working capital.