Half-year results from Carnival (CCL) included a downgrade to full-year earnings forecasts, as the cruise operator now expects full-year EPS to be between $4.25 and $4.35 (£3.34-£3.42), down 10¢ from the upper end of guidance given in March. This is due to a combination of voyage disruptions related to Carnival Vista, the US government’s policy change on travel to Cuba, combined with lower net revenue yields in the second half of the year. President Trump’s move on Cuba has had logistical implications, as operators have been forced to reroute cruises, many of which are booked well in advance.
During the reported period, revenue growth from higher capacity and improved on-board spending during the second quarter was not enough to compensate for the drag from rising fuel costs and adverse currency exchange movements. Gross cruise costs including fuel per available lower berth day (ALDB) increased by 9.6 per cent, but strip out fuel and these costs decreased by 1.3 per cent.
Cumulative advance bookings for the remainder of the year are modestly ahead of last year at comparable prices, although they have softened since March. Chief executive Arnold Donald said that higher yields in America and Australia will be offset by Europe and Asia in the remainder of the year.
| CARNIVAL (CCL) | ||||
| ORD PRICE: | 3,414p | MARKET VALUE: | £24.6bn | |
| TOUCH: | 3,413-3,415p | 12-MONTH HIGH: | 5,030p | LOW: 3,354p |
| DIVIDEND YIELD: | 4.6% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 3,490¢ | NET DEBT: | 11%* | |
| Half-year to 31 May | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2018 | 8.59 | 955 | 133 | 95 |
| 2019 | 9.51 | 797 | 114 | 100 |
| % change | +11 | -17 | -14 | +5 |
| Ex-div: | tbc | |||
| Payment: | tbc | |||
| *Excludes $5.82bn of customer deposits. £1=$1.27 | ||||
