Carnival reports record fourth-quarter, full-year revenue

(Sharecast News) - Carnival released its fourth quarter and full-year earnings on Thursday, reporting record-breaking revenues, reaching an all-time high of $21.6bn. The FTSE 250 cruise giant said cash from operations for the year totalled $4.3bn, with adjusted free cash flow of $2.1bn.

Despite a US GAAP net loss of $74m, the company outperformed its guidance range from September.

Additionally, it achieved a positive adjusted net income of $1m.

Carnival said it made debt payments of $6bn in the year, thus reducing its debt balance by $4.6bn from its peak in the first quarter of the year and ending the year with $5.4bn of liquidity.

Heading into 2024, Carnival said it was in its best booking position ever regarding price and occupancy.

Looking at the fourth quarter specifically, Carnival achieved record revenue of $5.4bn.

Net per diems in constant currency exceeded 2019 levels, surpassing the September guidance range, and record net yields at constant exchange rates.

The firm's performance around Black Friday and Cyber Monday was described as exceptional, with booking volumes reaching an all-time high for the period.

Total customer deposits in the fourth quarter also set a new record of $6.4bn.

That marked a 25% increase over the prior fourth quarter record of $5.1bn as of 30 November.

"We ended the year on a high note with another record-breaking quarter that exceeded expectations and achieved positive full year adjusted net income," said chief executive officer Josh Weinstein.

"In fact, we consistently outperformed in all four quarters of the year, buoyed by a strengthening demand environment across all our brands.

"Net yields for the fourth quarter continued on a positive trajectory, were significantly higher than a very strong 2019 and even higher than we had anticipated, enabling us to overcome four years of high-cost inflation to deliver five per cent higher per unit EBITDA than 2019, holding fuel and currency constant."

After the decisive second half, Weinstein said Carnival was already ahead of its plan to achieve 'SEA Change', its three-year financial targets calling for the highest adjusted ROIC and adjusted EBITDA per ALBD in nearly two decades.

"Based on our 2024 guidance, we expect to deliver another big step forward, positioning us more than halfway toward realising all our 2026 SEA Change targets.

"With nearly two-thirds of 2024 on the books already, we are well positioned to obtain another year of record revenues and adjusted EBITDA."

At 1425 GMT, shares in Carnival were down 0.86% in London at 1,319.5p.

Reporting by Josh White for Sharecast.com.