7th Apr 2021 14:43
(Alliance News) - Carnival PLC on Wednesday said it has optimised its spend as its quarterly loss widened, while bookings have improved.
Carnival shares were trading 4.2% higher in London on Wednesday at 1,777.80 pence each. The stock has risen 30% so far in 2021.
The cruise operator reported a US GAAP net loss of USD1.97 billion for the three months to the end of February, widened from a USD781 million loss reported in the first quarter of the prior year.
Gains on ship sales and impairments totalled USD3 million, down from USD928 million a year ago. As a result, adjusted net loss for the first quarter was USD1.95 billion versus USD150 million profit the year prior.
The Florida-based firm noted that it ended the first quarter with USD11.5 billion of cash and short-term investments. Cash burn rate in the first quarter was better than expected, Carnival noted, as the company has identified and implemented opportunities to optimise its monthly spend.
"The company expects the monthly average cash burn rate for the first half of 2021 to be approximately USD550 million, which is better than previously expected," it added.
Carnival said its booking volumes for all future cruises during the first quarter were 90% higher than booking volumes during the prior quarter. Cumulative advanced bookings for 2022 were also ahead of a very strong 2019, despite "minimal" advertising or marketing.
"We are focused on resuming operations as quickly as practical, while at the same time demonstrating prudent stewardship of capital and doing so in a way that serves the best interests of public health," said Carnival President & Chief Executive Officer Arnold Donald.
He added: "Our portfolio of brands have clearly been an asset as we resume operations this summer with nine ships across six of our brands."
Six of the company's nine brands are expected to resume limited guest cruise operations by this summer. AIDA resumed guest cruise operations in March sailing in the Canary Islands, while Costa expects to resume guest cruise operations in May sailing to Italian ports.
Elsewhere, P&O Cruises, Cunard and Princess Cruises will each offer a series of UK cruises this summer, and Seabourn expects to resume guest cruise operations this summer sailing from Greece.
By Evelina Grecenko; [email protected]
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