Carnival Corporation & plc (CCL) Q3 Earnings call transcript Sep 30, 2024

Carnival Corporation & plc, the world's largest cruise line operator, recently unveiled its third-quarter financial results, revealing an impressive performance that surpassed expectations and laid the foundation for a strong future. The company reported record-breaking revenue of almost $8 billion, an increase of $1 billion over the previous year, and a remarkable 60% growth in net income, signaling a robust financial health and a well-executed business strategy.

Record-Breaking Performance and a Strong Foundation for the Future

The third quarter of 2024 saw Carnival Corporation & plc outperforming on every measure, with revenue hitting an all-time high and EBITDA exceeding $2.8 billion, marking a significant leap from the previous year's record levels. This achievement was driven by high-margin same-ship yield growth across all major brands, indicating a successful focus on revenue optimization and operational efficiency. The company's net income also grew by over 60% compared to the previous year, reaching double-digit ROIC, demonstrating a strong financial foundation and a solid business strategy.

A Focus on Growth and Innovation

Looking ahead, Carnival Corporation & plc is poised for a record-breaking 2025, with high occupancy and higher pricing across its entire portfolio. The company's strategic focus on demand generation and baseloading is paying off, as it enjoys a widening pricing advantage for the full year and each quarter individually. Additionally, the company's investment in the existing fleet, including major modernization programs, is expected to deliver additional revenue uplift in the coming years.

Navigating the Future with Confidence

Carnival Corporation & plc's robust financial performance is underscored by its ability to navigate challenges and seize opportunities. The company's balance sheet is on a clear path towards investment grade, with a clear line of sight for further debt paydown. The limited order book through 2028 positions the company well to continue creating demand in excess of capacity growth, further enhancing its market position and financial stability.

A Shining Light on the Cruise Industry's Future

Carnival Corporation & plc's strong performance and positive outlook serve as a beacon for the cruise industry as a whole. With record bookings for 2024, 2025, and 2026, the company's trajectory is set for continued success. Its focus on innovation, operational efficiency, and strategic investment is paving the way for a future that is brighter and more promising for both the company and its stakeholders. As Carnival Corporation & plc sails into uncharted waters, it does so with confidence and a clear vision of a prosperous future, leaving a wake of success and innovation in its trail.