Carnival Corporation & plc, the world’s largest cruis shipping group, reported record earnings for its third quarter, but also stated that this is a challenging year.
Group net income rose to $1,.78 billion in threemonths to 31 August from $1.71 billion in the same period last year, while operating income increased to $.189 billion from $1.79 billion. Revenues rose to $6.33 billion from $5.84 billion.
In the first nine months of its financial year, the groip rccorded a net profit of $2.57 billion compared to $2.66 billion year on, with operating income edging higher to $2.79 billion from $2.77 billion. Revenues increased to $16.04 billion from $1.43 billion.
President and Chief Executive Officer Arnold Donald said in a statement: "I thank our 150,000 global employees for their efforts to deliver a record quarter in an otherwise challenging year. We achieved additional cost improvements largely driven by leveraging our scale, offsetting the earnings impact due to voyage disruptions from the combined impact of Hurricane Dorian, the tensions in the Arabian Gulf and the delayed delivery of Costa Smeralda.”
Gross revenue yields -revenue per available lower berth day or "ALBD" - increased 5.6%. In constant currency, net revenue yields decreased 0.5%, in line with June guidance of down slightly to flat.
Gross cruise costs including fuel per ALBD increased 9.4%. In constant currency, net cruise costs excluding fuel per ALBD decreased 3.2%, better than June guidance of up 0.5% to 1.5%, due to the timing of expenses between quarters and cost improvements realized during the quarter.
Changes in fuel prices increased earnings by $0.07 per share, offset by a decrease in earnings due to changes in currency exchange rates of $0.07 per share compared to the prior year. Compared to June guidance, changes in fuel prices and currency exchange rates decreased earnings by $0.03 per share.
Highlights from the third quarter included Carnival Cruise Line's partnership with Thrillist to create Island Hoppers, the first-ever comedy competition show at sea. Princess Cruises announced Phantom Bridge, a first-of-its-kind game combining digital and physical elements for the ultimate immersive escape room, which will launch onboard Sky Princess and Enchanted Princess.
AIDAnova was the first-ever cruise ship to be awarded the prestigious Blue Angel certification for excellence in environmentally friendly ship design by Germany's Federal Ministry for the Environment. Additionally, during the quarter, the company released its 2018 Sustainability Report, detailing the key initiatives and progress made in 2018 toward its 2020 sustainability performance goals.
