Carnival Corp. reports $37M profit

By Jerry Limone
Carnival Corp. reported a $37 million net profit in its first quarter, compared with a $139 million net loss a year earlier.

The loss in last year’s first quarter was due to a $173 million write-down of Ibero Cruises’ goodwill and trademark assets.

Carnival Corp.’s first-quarter revenue was flat at $3.6 billion, but net revenue yields fell 2.3% on a constant-dollar basis.

The company now expects full-year net revenue yields to be in line with the prior year; in its December guidance, Carnival said it expected a 1-2% increase.

Carnival Corp. said the change in outlook is due to economic uncertainty in Europe and pricing promotions for the Carnival brand, combined with lower-than-expected growth in onboard revenue for all brands.

Carnival Corp. also changed its cost guidance because of repairs to the Carnival Triumph and expenses incurred to enhance other ships as a result of the Triumph incident.

The company anticipates a 2.5-3.5% increase in net cruise costs per available lower berth day, up from 1-2 % in its December guidance.

Cumulative advance bookings for 2013 currently are behind the prior year at similar prices to last year, Carnival Corp. said. Since January, booking volume for the remainder of the year, including Costa, is “running significantly higher than last year at slightly higher prices,” the company said.

“Despite considerable attention surrounding the Carnival Triumph, we had been encouraged to see booking volumes for Carnival Cruise Lines recover significantly in recent weeks,” Carnival Corp. CEO Micky Arison said.

“Attractive pricing promotions, combined with strong support from the travel agent community and consumers who recognize the company’s well-established reputation and quality product offering, were driving the strong booking volumes.”
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