30th Mar 2016 14:01
LONDON (Alliance News) - Cruise operator Carnival PLC on Wednesday said its cumulative bookings for 2016 are well ahead year-on-year as its net income and revenue grew in the first quarter of its financial year.
Carnival said bookings for the rest of 2016 were higher than at the same point a year earlier and had been made at slightly higher prices.
Net income for the first quarter to the end of February was USD142.0 million, significantly ahead of the USD49.0 million made a year earlier, as revenue grew to USD3.65 billion from USD3.53 billion.
Cruise revenue was boosted by growth in passenger ticket sales and onboard revenue, while tour and other revenue was flat in the quarter.
Net revenue yields increased by 5.7% on a constant currency basis, beating the company's guided range of between 3.5% and 4.5% growth.
The profit was helped by net cruise costs, excluding fuel, per available lower berth day increasing 1.6% in constant currencies, although this was below the guidance for a 2.5% to 3.5% rise the company had given in December. Carnival said this was due to the timing of expenses between quarters.
The group expects net cruise costs to rise by between 0.5% and 1.5% in the second quarter and by around 2.0% for the full year, both in constant currencies. Net revenue yields are expected to increase by between 1.5% and 2.5% in the second quarter and by around 3.0% in the full year, both also in constant currencies.
Arnold Donald, Carnival president and chief executive, said the company delivered a "strong quarter of operational improvement" and said the guest experience strategies it has used has driven higher demand for Carnival services.
"The lower levels of inventory remaining for sale for the balance of the year, particularly for our peak summer period, positions our brands well for continued revenue yield growth and builds confidence in our full year earnings forecast," he added.
Carnival shares were up 3.8% at 3,685.00 pence Wednesday afternoon, one of the best performers in the FTSE 100.
By Sam Unsted; [email protected]; @SamUAtAlliance
Update by Karolina Kaminska; [email protected] @KarolinaAllNews
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