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Strong demand, from Europe to Caribbean and Alaska, boosts Carnival's Q3

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Strong summer demand for cruises in Europe and North America boosted Carnival Corp.'s third quarter profit, and the company raised its guidance for the rest of the year.

US GAAP net income was $1.4bn, or $1.93 per share, up from $1.2bn, or $1.56 per share a year ago. Adjusted net income was $1.92 per share, higher than the $1.75 in Q3 2015. Revenues were $5.1bn, up from $4.9bn.

'Revenues during the peak summer season were bolstered by strong performances from both our North American and European brands and across all major deployments including the Caribbean, Alaska and Europe,' said Arnold Donald, president and ceo, Carnival Corp. & plc.

Net revenue yields on a constant currency basis increased 2.7%, toward the top end of the June guidance range of up 2% to 3%. Net cruise costs excluding fuel per available lower berth day on a constant currency basis increased 5.5%, better than June guidance of up 6% to 7%, due to the timing of certain expenses.

Changes in fuel prices and currency exchange rates increased earnings by 2 cents per share.

Carnival said cumulative advance bookings for the first half of next year are ahead of the prior year at considerably higher prices. Since June, booking volumes for the first half of next year are lower than the prior year, as there is less inventory remaining for sale, at significantly higher prices.

The company continues to expect full year 2016 net revenue yields to be up approximately 3.5% compared to the prior year, on a constant currency basis, and full year net cruise costs excluding fuel to be up approximately 1.5% in constant currency.

Carnival raised its full year 2016 EPS guidance to be in the range of $3.33 to $3.37, compared to the June guidance range of $3.25 to $3.35 and 2015 adjusted earnings per share of $2.70. Q4 guidance is 55 cents to 59 cents per share, up from 2015 adjusted EPS of 50 cents.

'We are well on track to deliver nearly 25% earnings growth in 2016. With cash from operations expected to reach a record $5 billion this year, we continue to fund our growth and return cash to shareholders,' Donald said.

During the quarter, Carnival repurchased $700m in CCL shares, bringing the cumulative total to $2.5bn in share repurchases over the past year.