Loading...
•
Feb 28, 2022
Carnival Q1 2022 Earnings Report
Reported a net loss due to the Omicron variant, but saw improving booking trends and progress in resuming guest cruise operations.
Key Takeaways
Carnival Corporation & plc reported a net loss of $1.9 billion for the first quarter of 2022, impacted by the Omicron variant. However, guest carriage increased by nearly 20% compared to the prior quarter, and revenue per passenger cruise day also increased. The company expects monthly adjusted EBITDA to turn positive by the beginning of the summer season and ended the quarter with $7.2 billion of liquidity.
U.S. GAAP net loss and adjusted net loss of $1.9 billion for the first quarter of 2022.
Ended the first quarter with $7.2 billion of liquidity.
Revenue per passenger cruise day increased approximately 7.5% compared to 2019.
75% of the company's capacity had resumed guest cruise operations as of March 22, 2022.
Carnival
Carnival
Carnival Revenue by Segment
Revenue by Segment
Onboard and Other Revenue
CapyFin.com Forward Guidance
The company expects a net loss for the second quarter of 2022 but anticipates a profit for the third quarter. For the full year 2022, a net loss is expected.
Positive Outlook
- The company expects monthly adjusted EBITDA to turn positive at the beginning of its summer season.
- Since the middle of January, the company has seen an improving trend in weekly booking volumes for future sailings.
- Recent weekly booking volumes have been higher than at any point since the restart of guest cruise operations.
- The company increased its booked occupancy position for the second half of 2022
- Normalized for bundled packages, prices on bookings for the second half of 2022 continue to be higher, with or without future cruise credits (“FCCs”), as compared to 2019 sailings.
Challenges Ahead
- The company continues to expect a net loss for the second quarter of 2022 on both a U.S. GAAP and adjusted basis.
- For the full year 2022, the company expects a net loss.
- During the first quarter, the company increased its booked occupancy position for the second half of 2022, albeit not at the same pace as a typical wave season due to the Omicron variant.
- As a result, cumulative advance bookings for the second half of 2022 are at the lower-end of the historical range.
- The ongoing resumption of the company’s guest cruise operations and the increased uncertainty given the current invasion of Ukraine, including its effect on the price of fuel, are collectively having a material impact on its business, including the company’s liquidity, financial position and results of operations.