Carnival Corp. More Than Doubles Q2 Earnings

Open Jaw

Carnival Corporation has announced net income of $193 million for the 2nd quarter of 2015, compared to $73 millionin Q2 2014. The cruise giant achieved this positive result with revenues of $3.6 billion, in line with the prior year.

“We more than doubled our 2nd quarter earnings vs. the comparable period a year ago and significantly exceeded our quarterly earnings guidance,” said CEO Arnold Donald. “Our initiatives to create demand and leverage our scale benefited both cruise ticket prices and onboard revenues, contributing to 5% revenue yield improvement this quarter. While all of our North American brands enjoyed strong revenue yield improvement, our Carnival Cruise Line brand performed particularly well.”

Significant milestones during the 2nd quarter included the launch of fathom, the 10th brand in the Carnival Corp. family. Beginning in April 2016, fathom will introduce a new cruise category offering travellers the combination of vacation and voluntourism, beginning in the Dominican Republic.

Other quarter highlights included the launch of year-round service from Shanghai on Costa Serena in April and the announcement of the deployment of Costa Fortuna to China in 2016, bringing the total to 4 Costa ships dedicated to Chinese guests.

Princess Cruises also announced that it will expand its presence in Asia with a new ship scheduled to enter service in mid-2017 to be based in China year-round.

Also, earlier this month Carnival Corp. finalized a contract with Meyer Werft shipyard to build 4 ships that will feature the largest guest capacity in the world as well as be the 1st cruise ships to be powered at sea by Liquefied Natural Gas, the world’s cleanest-burning fossil fuel.

“These milestones further demonstrate our ongoing focus on effective strategic actions, technological development and innovation, laying the foundation for future growth and continued global expansion,” said Donald.

Looking ahead, Carnival says that fleetwide booking volumes for the next 3 quarters are running well ahead of last year at slightly lower prices due to transactional currency impacts. At this time, cumulative advance bookings for the next 3 quarters are well ahead of the prior year at slightly lower prices again due to transactional currency impacts.

Donald noted: “Current strength in booking volumes clearly demonstrates strong consumer demand for our brands, leaving less inventory remaining for sale and building confidence in achieving significant revenue yield improvement this year. We are stepping up our marketing investment for the remainder of the year to further solidify our base of business for 2016 and drive continued yield improvement as we progress on our path toward double digit return on invested capital.”

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