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May 31, 2022

Carnival Q2 2022 Earnings Report

Reported a net loss but showed signs of recovery with increased revenue and occupancy.

Key Takeaways

Carnival Corporation reported a net loss of $1.8 billion for Q2 2022, but demonstrated significant improvement with revenue increasing by nearly 50% compared to Q1 2022 and occupancy reaching 69%. The company's cash from operations turned positive, and customer deposits increased by $1.4 billion.

U.S. GAAP net loss of $1.8 billion and adjusted net loss of $1.9 billion for the second quarter of 2022.

Cash from operations turned positive in the second quarter of 2022.

Second quarter 2022 ended with $7.5 billion of liquidity.

Booking volumes for all future sailings during the second quarter of 2022 were nearly double the booking volumes during the first quarter of 2022.

Total Revenue
$2.4B
Previous year: $50M
+4702.0%
EPS
-$1.64
Previous year: -$1.8
-8.9%
Gross Profit
-$282M
Previous year: -$632M
-55.4%
Cash and Equivalents
$7.21B
Previous year: $7.07B
+2.0%
Free Cash Flow
-$488M
Previous year: -$1.74B
-72.0%
Total Assets
$53B
Previous year: $55.1B
-3.8%

Carnival

Carnival

Carnival Revenue by Segment

Forward Guidance

Carnival Corporation expects a net loss for the third quarter of 2022 and for the full year 2022. The company continues to believe that adjusted EBITDA will improve with the ongoing resumption of guest cruise operations and continues to expect improvement in occupancy throughout 2022 until it returns to historical levels in 2023. The company expects positive adjusted EBITDA for the third quarter of 2022.

Positive Outlook

  • Expects improvement in occupancy throughout 2022 until it returns to historical levels in 2023.
  • Continues to believe that adjusted EBITDA will improve with the ongoing resumption of guest cruise operations.
  • The company expects positive adjusted EBITDA for the third quarter of 2022.

Challenges Ahead

  • The company expects a net loss for the third quarter of 2022.
  • For the full year 2022, the company continues to expect a net loss.

Revenue & Expenses

Visualization of income flow from segment revenue to net income