10-QPeriod: Q3 FY2024

CARNIVAL CORP Quarterly Report for Q3 Ended Aug 31, 2024

Filed September 30, 2024For Securities:CCL

Summary

Carnival Corporation & plc reported a strong third quarter for fiscal year 2024, demonstrating a significant recovery and growth trajectory. Total revenues reached $7.896 billion for the three months ended August 31, 2024, a substantial increase from $6.854 billion in the prior year, driven by robust passenger ticket and onboard spending. Net income surged to $1.735 billion, a marked improvement from $1.074 billion in the same period last year, reflecting effective cost management and strong demand. The company has also made progress in deleveraging its balance sheet, with total debt decreasing and a focus on optimizing its debt structure. Despite ongoing investments in new ships and fleet enhancements, Carnival maintained a healthy liquidity position with $1.5 billion in cash and cash equivalents and $3.0 billion available under its revolving credit facility. The positive results underscore the company's successful navigation of post-pandemic recovery and its ability to capitalize on strong consumer appetite for travel.

Financial Highlights

49 data points
Beta

Revenue

$7.90B

45.5% Gross Margin

Net Income

$1.74B

22.0% Net Margin

EPS (Diluted)

$1.26

Total Assets

$49.80B

Cash & Equivalents

$1.52B

Free Cash Flow

$628.00M

Financial Statements
Beta
Revenue$7.90B
Cost of Revenue$4.30B
Gross Profit$3.59B
SG&A Expenses$763.00M
Operating Expenses$5.72B
Operating Income$2.18B
Net Income$1.74B
EPS (Basic)$1.37
EPS (Diluted)$1.26
Shares Outstanding (Basic)1.27B
Shares Outstanding (Diluted)1.40B

Key Highlights

  • 1Revenue for the three months ended August 31, 2024, increased by 15% year-over-year to $7.9 billion, driven by strong passenger ticket and onboard spending.
  • 2Net income for the three months ended August 31, 2024, saw a significant increase of 61% to $1.735 billion compared to $1.074 billion in the prior year.
  • 3The North America and Australia (NAA) segment continues to be a strong performer, with revenues up 16% year-over-year.
  • 4Operating expenses increased by 9.8% for the quarter, generally in line with capacity growth and increased guest activity.
  • 5Interest expense, net of capitalized interest, decreased by 17% for the three months ended August 31, 2024, due to a decrease in total debt and lower average interest rates.
  • 6The company reported a substantial increase in cash flow from operating activities, reaching $5.0 billion for the nine months ended August 31, 2024, up from $3.4 billion in the prior year.
  • 7Carnival continues to invest in its fleet, with significant capital expenditures on new ship deliveries and enhancements.

Frequently Asked Questions

Carnival Corporation & plc reported a strong performance with a 15% year-over-year increase in revenue to $7.9 billion for the three months ended August 31, 2024. Net income also saw a significant jump of 61% to $1.735 billion, indicating a healthy recovery and strong demand for its services.

Carnival has made progress in managing its debt, with interest expenses decreasing due to lower debt levels and interest rates. As of August 31, 2024, the company reported $1.5 billion in cash and cash equivalents and had $3.0 billion available under its revolving credit facility, indicating a solid liquidity position.

Revenue growth is primarily driven by a combination of increased passenger ticket revenues due to higher demand and ticket prices, a 6.2% increase in capacity (Available Lower Berth Days), and a 2.9 percentage point increase in occupancy. Onboard and other revenues also contributed significantly, driven by higher onboard spending per guest.

Carnival continues to invest in its fleet through capital expenditures for new ship deliveries and enhancements. For the nine months ended August 31, 2024, the company utilized $4.0 billion in capital expenditures, largely attributed to new ship deliveries.