Carnival Corporation & plc reports significantly higher first quarter earnings

Carnival Corporation & plc reports significantly higher first quarter earnings

MIAMI – Carnival Corporation & plc posted a US$49 million first quarter profit including unrealized losses on fuel derivatives of $112 million.

Revenues for the first quarter of 2015 were $3.5 billion compared to $3.6 billion in the prior year.

Carnival Corporation & plc President and Chief Executive Officer Arnold Donald noted “The year is off to a strong start achieving significantly higher earnings than the prior year and our previous guidance. Our onboard revenue initiatives drove particularly strong improvement in the first quarter with onboard yields more than 8% higher than prior year (constant dollar).”

Donald also noted that the Carnival Cruise Line brand continued to outperform, achieving significant revenue yield growth and remains on track for a strong year. Additionally, Costa’s Asia operations achieved double-digit revenue yield growth, affirming the pent-up demand in the region and building confidence in the long-term potential for growth.

At this time, cumulative advance bookings for the remainder of 2015 are ahead of the prior year at higher prices. Since January, booking volumes for the remainder of the year are running in line with last year’s historically high levels at higher prices.

Donald noted, “We are experiencing an ongoing improvement in underlying fundamentals based on our successful initiatives to drive demand. Our efforts to further elevate our guest experience are clearly resonating with consumers and, notably, improving the frequency and retention of our loyal guests.”

Donald added, “We are also seeing results from our ongoing public relations efforts and creative marketing campaign designed to attract new clients to cruise. Our multifaceted campaign built around the Super Bowl garnered 5 billion media impressions before the commercial aired and has exceeded 10 billion impressions to date.”

Donald also noted that the recent delivery of Britannia, the largest cruise ship built for Britain and christened by Her Majesty Queen Elizabeth II, drew international acclaim and showcased cruising on a global scale.

Based on current booking strength, the company expects full year 2015 net revenue yields to increase 3 to 4% on a constant currency basis, which excludes translation and transactional currency impacts, compared to the prior year.

Since December, unfavourable changes in currency exchange rates (constant currency) have reduced full year 2015 earnings expectations by $219 million.