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May 31, 2023
Carnival Q2 2023 Earnings Report
Reached a meaningful inflection point for revenue, surpassing 2019’s strong levels, and achieved positive operating income, cash from operations and adjusted free cash flow.
Key Takeaways
Carnival Corporation & plc reports a record second quarter revenue of $4.9 billion and an operating income of $120 million, turning positive for the first time since the resumption of guest cruise operations. The company saw continued acceleration of demand, with total bookings made during the quarter reaching a new all-time high for all future sailings. Total customer deposits reached an all-time high of $7.2 billion.
U.S. GAAP net loss of $407 million, or $(0.32) diluted EPS, and adjusted net loss of $395 million, or $(0.31) adjusted EPS.
Adjusted EBITDA for the second quarter of 2023 was $681 million.
Record second quarter revenue of $4.9 billion.
Total customer deposits reached an all-time high of $7.2 billion.
Carnival
Carnival
Forward Guidance
For the full year 2023, the company expects Adjusted EBITDA of $4.10 billion to $4.25 billion, Occupancy of 100% or higher and Net per diems of 5.5% to 6.5%. For the third quarter of 2023, the company expects Adjusted EBITDA of $2.05 billion to $2.15 billion and Occupancy of 107% or higher
Positive Outlook
- Adjusted EBITDA of $4.10 billion to $4.25 billion for full year 2023
- Occupancy of 100% or higher for full year 2023
- Net per diems of 5.5% to 6.5% for full year 2023
- Adjusted EBITDA of $2.05 billion to $2.15 billion for third quarter 2023
- Occupancy of 107% or higher for third quarter 2023
Challenges Ahead
- Approximately $0.5 billion unfavorable impact from fuel price and currency compared to 2019 for full year 2023
- Slower expected ramp down in inflationary pressures than previously estimated for full year 2023
- Headwinds from the loss of St. Petersburg as a marquee destination due to the suspension of cruises to Russia
- Adjusted cruise costs excluding fuel per ALBD (in constant currency) one and a half points higher than March guidance
- Incentive compensation increases reflecting expected improvements in the company’s current and long-term performance and continued increases in advertising investments