On June 25, 2024, Carnival Corp (CCL, Financial) released its 8-K filing reporting record-breaking financial results for the second quarter of 2024. Carnival Corp, the largest global cruise company, operates a fleet of 92 ships across various brands, including Carnival Cruise Lines, Holland America, Princess Cruises, and Seabourn, among others. The company has successfully rebounded to pre-pandemic levels, attracting nearly 13 million guests in 2023.
Performance Highlights
Carnival Corp (CCL, Financial) reported a significant improvement in its financial performance for the second quarter of 2024, with net income increasing by nearly $500 million compared to 2023. The company achieved a net income of $92 million, or $0.07 diluted EPS, and an adjusted net income of $134 million, or $0.11 adjusted EPS, outperforming March guidance by nearly $170 million. This performance was driven by higher ticket prices, increased onboard spending, and favorable timing of expenses.
Financial Achievements
Carnival Corp (CCL, Financial) reported record second quarter revenues of $5.8 billion, surpassing the analyst estimate of $5,674.90 million. The company also achieved a record operating income of $560 million, nearly five times the level of 2023. Additionally, the company reported a record adjusted EBITDA of $1.2 billion, increasing over 75% compared to 2023 and outperforming March guidance by approximately $150 million.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income | $92 million | -$408 million |
| Adjusted Net Income | $134 million | -$366 million |
| Operating Income | $560 million | $112 million |
| Revenues | $5.8 billion | $4.3 billion |
Challenges and Strategic Moves
Despite the impressive financial performance, Carnival Corp (CCL, Financial) faces challenges such as rising cruise costs per available lower berth day (ALBD), which increased by 4.0% compared to 2023. However, the company has managed to keep adjusted cruise costs excluding fuel per ALBD in line with the prior year, partly due to identified cost savings and favorable timing of expenses.
In a strategic move to optimize its portfolio, Carnival Corp (CCL, Financial) announced the sunset of the P&O Cruises (Australia) brand, integrating its operations into Carnival Cruise Line by March 2025. This realignment aims to strengthen the company's performance in the South Pacific and increase guest capacity for Carnival Cruise Line.
Outlook and Guidance
Carnival Corp (CCL, Financial) has raised its full-year 2024 net yield guidance to approximately 10.25% on continued strong demand and increased its full-year adjusted net income guidance by approximately $275 million. The company expects adjusted EBITDA of approximately $5.83 billion for the full year, up nearly 40% compared to 2023.
For the third quarter of 2024, the company anticipates net yields (in constant currency) to increase by approximately 8.0% compared to 2023 levels, with adjusted EBITDA expected to be around $2.66 billion, up 20% compared to the third quarter of 2023.
Commentary
"We have made incredible strides in improving our commercial operations, strategically reallocating our portfolio composition and formulating growth plans, while strengthening even further our global team, the best in the business. Off the back of that effort, we closed yet another quarter delivering records, this time across revenues, operating income, customer deposits and booking levels, exceeding our guidance on every measure," commented Carnival Corporation & plc’s Chief Executive Officer Josh Weinstein.
Overall, Carnival Corp (CCL, Financial) has demonstrated a strong recovery and robust financial performance in the second quarter of 2024, positioning itself well for continued growth and profitability in the coming quarters.
Explore the complete 8-K earnings release (here) from Carnival Corp for further details.
