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Feb 28, 2022
Carnival Q1 2022 Earnings Report
Carnival reported a net loss of $1.9 billion, but saw revenue per passenger cruise day increase by 7.5% compared to 2019.
Key Takeaways
Carnival Corporation & plc reported a U.S. GAAP net loss of $1.9 billion and an adjusted net loss of $1.9 billion for Q1 2022. The company ended the quarter with $7.2 billion in liquidity. Revenue per passenger cruise day increased by 7.5% compared to 2019, driven by strong onboard and other revenue. Occupancy was at 54%, a 20% increase over the prior quarter. The company expects monthly adjusted EBITDA to turn positive at the beginning of the summer season.
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
Passenger Ticket Revenue
CapyFin.comOnboard and Other Revenue
CapyFin.com Forward Guidance
The company continues to expect a net loss for the second quarter of 2022 on both a U.S. GAAP and adjusted basis. However, the company expects a profit for the third quarter of 2022. For the full year 2022, the company expects a net loss.
Positive Outlook
- Expects monthly adjusted EBITDA to turn positive by the beginning of the summer season.
- Expects improvement in occupancy throughout 2022 until it returns to historical levels in 2023.
- Recent weekly booking volumes have been higher than at any point since the restart of guest cruise operations.
- Prices on bookings for the second half of 2022 continue to be higher compared to 2019 sailings.
- Cumulative advance bookings for the first half of 2023 continues to be both at the higher end of the historical range and at higher prices compared to 2019 sailings.
Challenges Ahead
- Continues to expect a net loss for the second quarter of 2022 on both a U.S. GAAP and adjusted basis.
- Expects a net loss for the full year 2022.
- Adjusted cruise costs excluding fuel per ALBD for the full year 2022, to be significantly higher than 2019.
- 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.
- Cumulative advance bookings for the second half of 2022 are at the lower-end of the historical range.
Revenue & Expenses
Visualization of income flow from segment revenue to net income