Strong Growth For Carnival

Carnival beats Wall Street projections

By: By Marilyn Green

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A very strong indicator for 2010 came in from Carnival Corporation’s announcement of its first quarter results, which showed a 22-cents per share profit against Wall Street’s projection of 14 cents. Carnival chairman and CEO Micky Arison described the 2010 Wave season as “robust,” thanks to tempting values in the marketplace and a backlog of demand from consumers who postponed their vacations in 2009.

Cruise:  Booking volumes for Carnival Corporation are running above last year. // (C) 2010 Carnival Cruise Line

Cruise: Booking volumes for Carnival Corporation are running above last year. // (c) 2010 Carnival Cruise Line

Net income was down to $175 million on revenues of $3.1 billion compared to the first quarter of 2009, which saw $260 million in net income on revenues of $2.9 billion.

On a constant dollar basis, net revenue yields decreased 2.3 percent, which was better than Carnival’s December guidance of a 3 to 4 percent drop.

“We were very encouraged by our results as pricing continued to rebound off last year’s lows, and we returned to top line revenue growth after a challenging 2009,” Arison said. “During the quarter, the booking environment continued to improve for our North American brands, and we achieved stronger than expected pricing on close-in bookings.”

Booking volumes for the rest of 2010 are running above last year with significantly higher pricing, and Arison said vacationers should be encouraged to book now “as prices are going up.” He also noted that the company has been very efficient in cost control, which has helped the bottom line.

The recent order for two Princess ships may be the only order signed by Carnival Corporation this year, with expansion planned at a slower rate of two or three ships annually, rather than the previous five or six.

Carnival Corporation
www.carnivalcorp.com

 

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