Carnival Corp. Doubles Second-Quarter Profits
Carnival Corp. more than doubled its profits in the second quarter compared to the same period last year, citing higher cruise fares, increased onboard spending, and lower fuel costs.
Net income soared to $222 million, or 29 cents per share, compared to $98 million and 13 cents per share in the second quarter of 2014. The company reported non-GAAP net income of $193 million, or 25 cents per share, compared to $73 million, and 9 cents, in the same period last year.
“We more than doubled our second-quarter earnings versus the comparable period a year ago and significantly exceeded our quarterly earnings guidance,” CEO and President Arnold Donald said in a statement. “Our initiatives to create demand and leverage our scale benefited both cruise ticket prices and onboard revenues contributing to 5 percent revenue yield improvement (constant currency) this quarter. While all of our North American brands enjoyed strong revenue yield improvement, our Carnival Cruise Line brand performed particularly well again this quarter.”
And things are looking good into the next year. During the last 13 weeks, fleetwide booking volumes for the next three quarters were running well ahead of last year at slightly lower prices due to transactional currency impacts, Carnival said in a press release.
“Current strength in booking volumes clearly demonstrates strong consumer demand for our brands, leaving less inventory remaining for sale and building confidence in achieving significant revenue yield improvement this year,” Donald noted. “We are stepping up our marketing investment for the remainder of the year to further solidify our base of business for 2016 and drive continued yield improvement as we progress on our path toward double digit return on invested capital.”
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