Carnival PLC (NYSE:CUK)
$ 22.44 -0.17 (-0.75%) Market Cap: 28.92 Bil Enterprise Value: 56.76 Bil PE Ratio: 16.14 PB Ratio: 3.26 GF Score: 77/100

Q4 2024 Carnival Corp and Carnival PLC Earnings Call Transcript

Dec 20, 2024 / 03:00PM GMT
Release Date Price: $24.32 (+6.53%)

Key Points

Positve
  • Carnival PLC (CUK) achieved record revenues for the seventh consecutive quarter, with strong booking trends and customer deposits indicating continued momentum.
  • Fourth quarter net income improved by over $250 million year over year, exceeding expectations by $125 million.
  • Full year revenues reached an all-time high of $25 billion, with cash from operations nearly $6 billion.
  • The company reported a full year 2024 yield increase of 11%, driven largely by higher prices across all major brands.
  • Carnival PLC (CUK) made significant progress in reducing debt, paying down over $8 billion in under two years, and improving leverage metrics.
Negative
  • Despite strong financial performance, Carnival PLC (CUK) faces potential challenges with new passenger charges in Mexico, which could impact itineraries.
  • The company anticipates increased operating expenses in 2025 due to the introduction of Celebration Key and an increase in dry dock days.
  • There is uncertainty regarding the impact of European Union Allowance regulations, which could increase fuel expenses.
  • Carnival PLC (CUK) acknowledges the need for continued investment in marketing and revenue management to sustain growth.
  • The company is still working towards achieving its 2026 SEA Change targets, with some goals like carbon reduction proving challenging.
Operator

Greetings, and welcome to the Carnival Corporation and plc fourth quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to Beth Roberts, Senior Vice President, Investor Relations. Please go ahead, Beth.

Beth Roberts
Carnival Corp - Senior Vice President - Investor Relations

Thank you. Good morning, and welcome to our fourth quarter 2024 earnings conference call. I'm joined today by our CEO, Josh Weinstein; our Chief Financial Officer, David Bernstein; and our Chair, Micky Arison.

Before we begin, please note that some of our remarks on this call will be forward-looking. Therefore, I will refer you to the forward-looking statement in today's press release. All references to ticket prices, net per diems, net yields and adjusted cruise costs without fuel will be in constant currency unless otherwise stated.

References to per diems and yields will be on a net basis. Our comments may also reference cruise costs without fuel, EBITDA, net

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