The earnings call for Carnival Corporation (CCL) for the period ending June 30, 2024, was conducted on September 30, 2024, at 10:00 a.m. ET. This call included prepared remarks from various executives, followed by a Q&A session.
The call was initiated by the operator, who welcomed everyone and placed participants in a listen-only mode, with a reminder that the conference was being recorded. Beth Roberts, Senior Vice President, Investor Relations, then took over as the host.
Roberts introduced the other participants: CEO Josh Weinstein, CFO David Bernstein, and Chair Micky Arison. She provided preliminary remarks focusing on some forward-looking statements and references to non-GAAP financial measures like ticket prices, net yields, EBITDA, and ROIC. She also mentioned where reconciliations to GAAP measures could be found.
Weinstein began by expressing sympathy for those affected by Hurricane Helene, before reporting on the company’s exceeding 2024 expectations and a strong setup for 2025. The third quarter was reported as phenomenal, with record-breaking revenue of nearly $8 billion and record EBITDA exceeding $2.8 billion. Other highlights included a 60% increase in net income and double-digit ROIC. There was an increase in full-year yield guidance for the third time, boosted by strong demand and improved cost efficiencies.
Weinstein projected confidence in 2025 and 2026 based on the high book position and occupancy rates. He cited success in gaining new customers and emphasized ongoing investments in the fleet and new destinations, such as the Sun Princess and the Celebration Key in the Bahamas. He also mentioned modernization programs like AIDA Evolution.
Bernstein provided a detailed summary of third-quarter results, noting a significant outperformance driven by higher ticket prices and onboard spending as well as cost efficiencies. He gave guidance for the fourth quarter, highlighting continued yield growth and stable cruise costs. Full-year guidance was improved, with expectancies for net income set at $1.76 billion due to higher yields, better cost management, and favorable fuel prices and currency impacts.
Questions from analysts focused on various aspects including momentum into 2025, balance sheet priorities, potential impacts from geopolitical events like the Middle East conflict, and details on cost-saving strategies. Both Weinstein and Bernstein reiterated strong fundamentals, record bookings, excellent commercial performance, and strategic marketing efforts as key drivers of their positive outlook.
In summary, Carnival Corporation’s executives highlighted their strong financial and operational performance, strategic focus on cost management, and robust demand across their portfolio, underpinned by record bookings and significant future potential. The company conveyed a stable and optimistic outlook for the coming years despite external challenges.
