Carnival Cruise Ships

Carnival reports better-than-expected profit of $106m in second quarter

MIAMI — Carnival Corporation & plc saw net income for the second quarter rise to $106 million compared to $41 million for the same period of 2013.

Revenues for the second quarter of 2014 were $3.6 billion, compared with $3.5 billion the prior year.

Carnival Corporation & plc President and CEO Arnold Donald noted that second quarter earnings were significantly better than anticipated in the company’s March guidance due to better than expected net revenue yields for most of the company’s cruise brands, as well as lower than expected net cruise costs.

Donald noted, “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.”

Since March, fleetwide booking volumes for the next three quarters are running slightly behind last year at higher prices. At this time, cumulative advance bookings for the remainder of 2014 are slightly ahead of the prior year at higher prices.

Donald noted, “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.”

Third quarter constant dollar net revenue yields are expected to be flat to down 1% compared to the prior year due primarily to a significant industry capacity increase in the Caribbean.