Carnival Corporation & plc, the world’s largest cruise shipping group, has reported higher revenues for the first quarter of its financial year than in the corresponding period year on, but both operating income and net income decreased.
Group net income fell to $336 million in three months to 28 February from $391 million in the same period year-on, while operating income decreased to $386 million from $491million . Revenues, however, increased to $4.67 billion from $4.43 billion.
Earnings per share (EPS) fell to $0.48 from $0.52.
“Adjusted net income excludes net charges of $2 million for the first quarter of 2019 and net gains of $16 million for the first quarter of 2018 relating to unrealized gains on fuel derivatives net of other charges,” the company said in a statement.
Carnival Corporation & plc President and Chief Executive Officer Arnold Donald stated, "First quarter earnings included revenue growth from higher capacity and improved onboard spending, offset by the timing of cost increases and a drag from fuel price and currency compared to the prior year. First quarter adjusted earnings were better than the mid-point of December guidance by $0.07 per share."
Gross cruise revenues of $4.6 billion compared to $4.2 billion for the prior year. In constant currency, net cruise revenues of $3.6 billion compared to $3.4 billion, an increase of 4.7 percent.
Gross revenue yields (revenue per available lower berth day or "ALBD") increased 5.8 percent. In constant currency, net revenue yields increased 0.5 percent, better than December guidance of approximately flat.
Gross cruise costs including fuel per ALBD increased 8.6 percent. In constant currency, net cruise costs excluding fuel per ALBD increased 0.9 percent, better than December guidance of up approximately 2.0 percent, mainly due to the timing of expenses between quarters.
Changes in fuel prices and currency exchange rates decreased earnings by $0.03 per share.
