Released on September 29, 2023, Carnival Corp (CCL, Financial)'s Q3 2023 earnings report showcases an all-time high revenue of $6.9 billion, demonstrating strong earnings momentum. The company's U.S. GAAP net income of $1.07 billion and adjusted net income of $1.18 billion exceeded the June guidance range. The adjusted EBITDA of $2.22 billion also surpassed the June guidance.
Financial Highlights
Carnival Corp (CCL, Financial) reported a third-quarter record of total customer deposits reaching $6.3 billion. The company's cumulative advanced booked position for the full year 2024 is well above the historical range at higher prices than 2023 levels. The company also reduced its debt by nearly $4 billion from its peak in the first quarter of 2023 and ended the third quarter with $5.7 billion of liquidity.
CEO Commentary
“We delivered over $1 billion to the bottom line with revenue reaching an all-time high” commented Carnival Corporation & plc’s Chief Executive Officer Josh Weinstein. “Both revenue and earnings significantly exceeded expectations this quarter enabling us to take up expectations for the year.”
Third Quarter 2023 Results
For the first time since the resumption of guest cruise operations, U.S. GAAP net income turned positive, generating $1.07 billion, marking a significant milestone. Adjusted net income of $1.18 billion exceeded the June guidance range of $0.95 billion to $1.05 billion. Adjusted EBITDA of $2.22 billion also exceeded the June guidance range of $2.05 billion to $2.15 billion.
2023 Outlook
For the full year 2023, the company expects adjusted EBITDA of $4.1 billion to $4.2 billion, within the June guidance range, despite the $125 million net unfavorable impact from fuel price and currency from June guidance. The company also expects fuel consumption per available lower berth day for full year 2023 to be nearly 16 percent lower than 2019, better than previously expected.
Financing and Capital Activity
Carnival Corporation & plc Chief Financial Officer David Bernstein noted, “We are accelerating our debt repayment efforts and aggressively managing down our interest expense. In just the last six months, we have reduced our debt balance by over 10 percent or nearly $4 billion. With improving performance, growing operating cash flows and $5.7 billion of liquidity, we are on a path to end the year with less than $31 billion of debt.”
Other Recent Highlights
Among other achievements, Carnival Corporation was named one of America’s Best Employers for Women by Forbes for the second year. The company also continues to expand next-generation internet across its fleet with the installation of SpaceX’s Starlink on Costa Cruises, Cunard and P&O Cruises (UK) ships, with plans for all of the company’s capacity to have Starlink capability by the end of the first quarter of 2024.
