Carnival Corp’s Q2 comes out better than expected
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
Carnival Corporation announced better second quarter results than anticipated today following improved net revenue yields and lower costs.
The cruise giant posted a non-GAAP net income of US$80 million for the second quarter compared to US$57m year-on-year, while its GAPP net income registered at US$41m with revenues up slightly on last year to US$3.6bn.
Developments in Europe helped the numbers along including Regal Princess launching and Costa Cruises bouncing back from the Concordia incident.
Since March bookings across its cruise brands, which include Carnival Cruise Lines, Princess Cruises, P&O Cruises, Holland America Line, Cunard, Seabourn and Costa Cruises, are slightly behind this time last year at higher prices although advance bookings for the rest of 2014 are ahead and also selling for more.
“We benefited from effective marketing initiatives, which combined with a gradually improving economic environment, led to revenue yield improvement for our continental European brands in the quarter compared to the prior year and is expected to continue through the remainder of the year. In addition, we achieved a 6% improvement in fuel consumption,” said Arnold Donald, president and CEO of Carnival Corporation. “Collectively our brands are gaining momentum in our efforts to drive higher ticket prices and we continue to expect sequential improvement in revenue yields, despite a more competitive environment in the Caribbean this summer.”
He said the company is working on ways to simplify operations across its brands to help continue driving down costs. Competition in the Caribbean is expected to mean the group’s net revenue yields will remain flat in the third quarter, with costs creeping up 1-2% compared to last year.
Comments are closed.