Carnival PLC
LSE:CCL

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Carnival PLC Logo
Carnival PLC
LSE:CCL
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Price: 1 796.5 GBX 0.98% Market Closed
Market Cap: 24.3B GBX

Carnival PLC
Investor Relations

Carnival PLC, a prominent figure in the leisure travel sector, navigated its way into the hearts of millions as the world's largest cruise operator. The company operates a fleet of diverse brands, each offering unique experiences across the globe's waterways. With names like Carnival Cruise Line, Holland America Line, and Seabourn under its umbrella, Carnival caters to a variety of demographics—from families seeking fun-filled adventures to luxury-minded travelers indulging in opulent retreats. The operational mechanics of the company are strategically orchestrated; it capitalizes on scale and brand differentiation to fill its vessels with passengers eager for the promise of exploration, entertainment, and convenience all in one package. These floating cities boast an array of services, from fine dining and spas to casinos and live performances, each contributing to the company's bottom line.

Monetization for Carnival comes intricately woven through its large-scale operations. Primarily, the company derives revenue from ticket sales, varying based on cruise duration, destination, and onboard accommodations. On top of this, onboard spending significantly bolsters earnings—whether from specialty dining, shore excursions, or duty-free shopping, each is an avenue for additional revenue streams. Moreover, Carnival's expansive operations benefit from economies of scale, which help the company manage costs more efficiently. The cruise line's expansive geographical reach ensures year-round revenue generation, optimally utilizing its fleet across the different cruising seasons worldwide. Thus, Carnival navigates the wave of combining leisure and profitability, steering through both economic fair tides and storms.

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Last Earnings Call
Fiscal Period
Q2 2023
Call Date
Jun 26, 2023
AI Summary
Q2 2023

Record Bookings: Booking volumes and customer deposits hit all-time highs, with booking volumes up 17% over 2019 and deposits reaching $7.2 billion.

Revenue Outperformance: Revenue, adjusted EBITDA, and bottom line all surpassed guidance, with Q2 revenues of $4.9 billion and net yields turning positive versus 2019.

Raised Guidance: Adjusted EBITDA guidance for 2023 was raised to $4.1–$4.25 billion, above the prior range, due to continued pricing strength.

Profitability Milestones: Operating income, cash from operations, and adjusted free cash flow were all positive this quarter, with expectations to return to full EBITDA levels by Q4.

Strong Demand & Onboard Spend: Cruise ticket prices exceeded 2019 levels and onboard revenues were at record highs, supporting higher net yields and visibility into future revenue.

Deleveraging Progress: Over $1 billion of debt prepaid in the quarter; year-end debt expected below $33 billion, down from a $35 billion peak.

Cost & Margin: Net per diems and occupancy are rising faster than costs, supporting margin expansion despite higher inflation and increased investment in advertising.

3-Year SEA Change Plan: The new strategic plan targets a 50% increase in EBITDA per ALBD, 12% adjusted ROIC, and over $8 billion in debt reduction by 2026.

Key Financials
Adjusted EBITDA
$681 million
Revenue
$4.9 billion
Net Per Diems
Up 7.5% over 2019 (constant currency)
Customer Deposits
$7.2 billion
Occupancy
Near high end of historical range
Adjusted Cruise Costs Without Fuel per ALBD
Up 10% to 11% over 2019
Booking Volumes
17% higher than 2019
Total Debt
Over $35 billion (Q1 2023 peak); expected below $33 billion by year-end 2023
Liquidity
$7.3 billion at end of Q2
Reserve Funds from Customer Deposits
$2.2 billion at end of Q2
Other Earnings Calls

Management

Mr. Micky Meir Arison
Executive Chairman of the Board
No Bio Available
Mr. Joshua Ian Weinstein
President, CEO, Chief Climate Officer & Director
No Bio Available
Mr. David Bernstein
CFO & Chief Accounting Officer
No Bio Available
Mr. Enrique Miguez J.D.
General Counsel
No Bio Available
Ms. Bettina Deynes
Global Chief Human Resources Officer
No Bio Available
Vice Admiral William R. Burke
Chief Maritime Officer
No Bio Available
Ms. Beth Roberts
Senior Vice President of Investor Relations
No Bio Available
Hon. E. H. Horst Rahe
Life President of AIDA Cruises
No Bio Available
Mr. Tom Strang
Senior Vice President of Maritime Affairs
No Bio Available
Ms. Janet G. Swartz
Executive Vice President of Strategic Operations
No Bio Available

Contacts

Address
HAMPSHIRE
Southampton
Carnival House, 100 Harbour Parade
Contacts
+442380655000.0
www.carnivalcorp.com