Carnival Corporation & plc, the world’s largest cruise shipping group, expects a net loss for the first quarter of its financial year but said adjusted EBITDA should improve each quarter in the 2023 financial year
The company expects $250 to $350 million of adjusted EBITDA for the first quarter of 2023 and a sequential improvement compared to 2019 in each quarter of next year as it continues to close the gap.
“In addition, the company expects to generate significant positive adjusted EBITDA in 2023. The company expects an adjusted net loss of $750 to $850 million for the first quarter of 2023,” Carnival said in a statement.
The company's depreciation and amortization forecast for the first quarter of 2023 is $0.6 billion little changed from the final quarter of the 2022 financial year. The 2023 full year forecast is $2.4 billion compared to $2.275 billion in 2022.
Booking volumes nearing 2019 levels
“Booking volumes during the fourth quarter of 2022 for 2023 sailings are nearing 2019 comparable booking levels, with November booking volumes exceeding 2019 levels.
“The company's North America and Australia ("NAA") segment's fourth quarter 2022 booking volumes for 2023 exceeded the comparable period in 2019. The company's Europe and Asia ("EA") segment's fourth quarter 2022 bookings for 2023 were lower than the comparable period in 2019, Carnival said.
However, reflecting the closer-in booking pattern of its Continental European brands, its fourth quarter bookings for fourth quarter sailings significantly exceeded the comparable period in 2019. “Further, the company continues to see an extension of its EA segment's booking curve, facilitating more optimal revenue yields over time,” Carnival said.
The company's full year 2023 cumulative advanced booked position is at higher prices in constant currency, normalized for future cruise credits, as compared to strong 2019 pricing with a booked position that is higher than the historical average. “During the second half of 2022, the company significantly increased its advertising activities to support booking volumes,” Carnival said.
