Carnival profits dip

first_imgSource = e-Travel Blackboard: JAJ Carnival Corporation has announced a net income of $72 million for the second quarter of 2013 less than half  compared to $159 million for the second quarter of 2012.Carnival Corporation and plc chief executive Micky Arison said that second quarter earnings were slightly better than May guidance due primarily to the timing of selling and administrative expenses, with key metrics for the second quarter of 2013 compared to the prior year including net revenue per available lower berth decreasing 1.9 percent and gross revenue yields decreasing by 3.1 percent in current dollars.At the same time, net cruise costs excluding fuel increased 8.8 percent, primarily due to the timing of dry-dock expenses, vessel repair costs and non-recurring items which benefited the prior year, while fuel prices decreased 9.7 percent and fuel consumption decreased by 5.7 percent.The report also features that the company took delivery of Princess Cruises’ 3,560-passenger Royal Princess, the first of a new class of ships for Princess, plus Carnival Sunshine entered service in May following an unprecedented $155 million modernization that added all the features and facilities of Carnival Cruise Lines’ Fun Ship 2.0 product enhancement program., with Fun Ship 2.0 transforming the Carnival brand’s on-board experience through celebrity partnerships including comedian George Lopez, who serves as the brand’s creative director for comedy, and Food Network personality and chef Guy Fieri, who developed a complimentary burger venue called Guy’s Burger Joint, as well as brand partnerships with EA Sports and Hasbro.Carnival Cruise Lines also completed the $115 million in upgrades and repairs to the troubled Carnival Triumph, successfully re-entering service recently.In term of the 2013 Outlook, the report said that cumulative advance bookings for the remainder of 2013 are behind the prior year at prices below the prior year levels, but since the end of March, fleetwide booking volumes for the next three quarters, excluding Carnival Cruise Lines, are running higher than the prior year at higher prices, but booking volumes for Carnival Cruise Lines during the same period are running behind the prior year at lower prices.Mr Arison said, “Our 90,000 global team members are dedicated to delivering an outstanding vacation experience to 10 million guests each year.”The level of quality, variety and innovation available throughout our fleet has never been greater and our guests are reaping the benefits of truly exceptional vacation values.”“We are working to more broadly communicate that message through stepped up consumer and trade marketing efforts, as well as strengthened engagement of our travel agent partners. We believe these initiatives, combined with slower supply growth, will lead to increased yields.”He added, “In addition, we remain focused on reducing our fuel dependence.”“By year end, we will achieve a 23 percent cumulative reduction in fuel consumption since 2005 and expect our research and development efforts in fuel saving technologies to continue to bear fruit.”“We have strengthened our management teams in maritime and technical ship operations and product delivery, as well as marketing and communications and we expect the combination of these efforts will drive improved return on invested capital over time.” The company expects full year net revenue yields, on a constant and current dollar basis to be down 2 to 3 percent compared to the prior year, in line with the May guidance and the company also expects full year net cruise costs excluding fuel to be higher by 3.5 to 4.5 percent compared to the prior year on a constant and current dollar basis.Third quarter net revenue yields are expected to be down 3.5 to 4.5 percent compared to the prior year and net cruise costs for the third quarter are expected to be higher by 8.5 to 9.5 percent compared to the prior year, the majority of which is due to costs associated with the previously announced vessel enhancement initiatives and increased marketing expenses, as well as higher pension plan contributions.   last_img


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