Carnival Corp. Sees Huge Rise in Q1 Earnings for 2015
The Carnival Corporation & plc announced on Friday that first quarter earnings in 2015 were significantly higher than the same period last year.
The company revealed a non-GAAP net income of $159 million for the first quarter of 2015, an improvement over a non-GAAP net loss of $3 million during the first quarter of 2014. U.S. GAAP net income was $49 million for the first quarter of the year, another notable improvement from 2014's first quarter U.S. GAAP net loss of $20 million.
Meanwhile, revenues for the first quarter of 2015 were $3.5 billion, not far off from $3.6 billion recorded for the same period last year.
"The year is off to a strong start achieving significantly higher earnings than the prior year and our previous guidance," said Carnival Corporation & plc president and CEO Arnold Donald. "Our onboard revenue initiatives drove particularly strong improvement in the first quarter with onboard yields more than 8 percent higher than prior year (constant dollar)."
Donald singled out subsidiaries Carnival Cruise Lines and Costa Cruises as the most notable performers during 2015's first quarter, with the former said to be achieving sizable revenue yield growth.
On the other hand, Costa Cruises' operations in Asia have been a huge success, achieving double-digit revenue yield growth through the first quarter.
Donald notes that the strong U.S. dollar has stifled full year earnings expectations for the company, but otherwise feels that Carnival is in excellent position to achieve its financial goals, including a double-digit return on invested capital, over the remainder of the decade.
"We are experiencing an ongoing improvement in underlying fundamentals based on our successful initiatives to drive demand. Our efforts to further elevate our guest experience are clearly resonating with consumers and, notably, improving the frequency and retention of our loyal guests," added Donald. "We are also seeing results from our ongoing public relations efforts and creative marketing campaign designed to attract new to cruise. Our multifaceted campaign built around the Super Bowl garnered 5 billion media impressions before the commercial aired and has exceeded 10 billion impressions to date."
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