20th Dec 2019 14:47
(Alliance News) - Cruise ship operator Carnival PLC on Friday said it is entering its new financial year with record bookings, despite a number of recent headwinds, as profit beat expectations.
Carnival's revenue for the 12 months to November rose by 10% to USD20.83 billion, with fourth-quarter revenue alone climbing by 7.2% to USD4.78 billion.
Pretax profit decreased 4.7% to USD3.06 billion for the year, with the quarterly figure decreasing 14% to USD437 million.
Earnings per share for the year declined by 2.7% to USD4.32, with the adjusted figure rising by 3.3% to USD4.40. For the final quarter, earnings per share fell 14% to USD0.61, with the adjusted figure down 11% to USD0.62.
Carnival had in September guided for annual adjusted earnings per share between USD4.23 and USD4.27. This had been revised downwards from USD4.25 to USD4.35, though both were beaten anyway.
Revenue was at record levels for both the fourth quarter and the entire financial year, Carnival noted, while earnings have beaten guidance for the quarter.
"Exceeding our fourth quarter guidance enabled us to have strong full year earnings per share and another year of record adjusted earnings. We overcame a high number of unusual events compounded by a significant downturn in leisure travel demand for our large source markets in continental Europe," said Chief Executive Arnold Donald.
"In that environment, to achieve record revenues and adjusted earnings is an accomplishment for any consumer company, a credit to our 150,000 team members and demonstrates the robustness of our business model."
Looking to its newly begun financial year, Carnival said bookings are at a record level, despite bookings being hurt by hurricane Dorian at the beginning on the fourth quarter.
Carnival expects in the future increased use of marine gasoil, rather than heavy fuel oil, in line with new regulations. The impact of this change in fuel mix, together with fuel prices and currency rates are expected to increase earnings per share by USD0.17 to USD0.24 in financial 2020.
For its year ending November 2020, Carnival sees adjusted earnings per share coming in between USD4.30 to USD4.60, compared to USD4.40 in the recent year.
Shares were 6.5% higher in London on Friday afternoon at a price of 3,577.00 pence each.
Carnival separately Friday warned the delivery of the new Mardi Gras cruise ship is to be delayed, resulting in the cancellation of eight sailings next year.
By George Collard; [email protected]
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