Carnival Corporation & plc, the world's largest cruise shipping group, has reported strong figures for the first quarter of its financial year as yields rose markedly, driven by the group's US focused Carnival Cruise Line contemporary market brand and Costa Crociere;s Asian business.
Group net profit in three months to 28 February amounted to $49 million, compared to a loss of $20 million in the same period a year earlier. Operating profit (EBIT) rose to $266 million from $67 million, although revenues declined to $3.53 billion from $3.58 billion.
President and Chief Executive Officer Arnold Donald noted in a statement: "The year is off to a strong start achieving significantly higher earnings than the prior year and our previous guidance. Our onboard revenue initiatives drove particularly strong improvement in the first quarter with onboard yields more than 8% higher than prior year (constant dollar).”
Donald also noted that the Carnival Cruise Line brand continued to outperform, achieving significant revenue yield growth and remains on track for a strong year. Additionally, Costa’s Asia operations achieved double-digit revenue yield growth, affirming the pent-up demand in the region and building confidence in the long-term potential for growth.
Key metrics for the first quarter 2015 compared to first quarter 2014 were as follows:
On a constant dollar basis, net revenue yields (net revenue per available lower berth day or “ALBD”) increased 2.0% for 1Q 2015, which was better than the company’s December guidance of flat to up 1.0%. Gross revenue yields decreased 3.1% in current dollars due to changes in currency exchange rates.
Net cruise costs excluding fuel per ALBD increased 2.4% in constantdollars primarily due to higher dry-dock costs and advertising expenses. Costs were lower than December guidance, up 5.5% to 6.5%, substantially all due to the timing of expenses between quarters. "Gross cruise costs including fuel per ALBD in current dollars declined 9.6% due to changes in fuel prices and currency exchange rates," the company said.
Fuel prices declined 38% to $406 per metric ton for 1Q 2015 from $654 per metric ton in 1Q 2014.
Fuel consumption per ALBD decreased 3.7% in 1Q 2015 compared to the prior year.
Changes in currency exchange rates reduced earnings by $0.06 per share (constant currency).
