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Aug 31, 2022
Carnival Q3 2022 Earnings Report
Carnival's business showed a positive trajectory with adjusted EBITDA over $300 million, reaching nearly 90% occupancy in August, and booking volumes exceeding 2019 levels after relaxing protocols.
Key Takeaways
Carnival Corporation & plc reported a U.S. GAAP net loss of $770 million and an adjusted net loss of $688 million for Q3 2022. Adjusted EBITDA turned positive for the first time since resuming guest cruise operations, exceeding $300 million. Revenue increased by nearly 80% compared to Q2 2022, and occupancy increased by 15 percentage points from the prior quarter.
U.S. GAAP net loss of $770 million and adjusted net loss of $688 million for the third quarter of 2022.
Adjusted EBITDA for the third quarter of 2022 was over $300 million, turning positive for the first time since the resumption of guest cruise operations.
Revenue increased by nearly 80% in the third quarter of 2022 compared to second quarter 2022.
Occupancy in the third quarter of 2022 increased 15 percentage points from the prior quarter.
Carnival
Carnival
Carnival Revenue by Segment
Revenue by Segment
Passenger Ticket Revenue
CapyFin.comOnboard and Other Revenue
CapyFin.com Forward Guidance
The company expects a net loss and breakeven to slightly negative adjusted EBITDA for the fourth quarter ending November 30, 2022. They anticipate positive adjusted EBITDA for the second half of 2022 and expect improvement in adjusted EBITDA and occupancy, with occupancy returning to historical levels during 2023.
Positive Outlook
- Positive adjusted EBITDA expected for the second half of 2022.
- Improvement in adjusted EBITDA expected on a year-over-year basis.
- Occupancy expected to return to historical levels during 2023.
- Booking volumes for all future sailings are considerably higher than strong 2019 levels since announcing relaxed protocols.
- Strategic fleet changes and portfolio optimization efforts expected to provide strong tailwinds.
Challenges Ahead
- Net loss expected for the fourth quarter ending November 30, 2022.
- Breakeven to slightly negative adjusted EBITDA expected for the fourth quarter ending November 30, 2022.
- Cumulative advance bookings for the fourth quarter of 2022 are below the historical range and at lower prices.
- Costa Cruises continues to evaluate deployment options and fleet optimization alternatives given its significant presence in Asia, particularly China, which remains closed to cruising.
- Year-to-date adjusted cruise costs excluding fuel per ALBD during 2022 has benefited from the sale of smaller-less efficient ships and the delivery of larger-more efficient ships, this benefit is offset by a portion of its fleet being in pause status for part of the year, restart related expenses, an increase in the number of dry dock days, the cost of maintaining enhanced health and safety protocols, inflation and supply chain disruptions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income