June 24--Miami-based Carnival Corp. & PLC on Tuesday reported better-than-expected fiscal second quarter earnings due partly to less impacted revenue yields and lower costs.
The world's largest cruise company's net income increased 158 percent to $106 million, or 14 cents per share, up from $41 million, or 5 cents a share, in the year-ago period.
"It feels like we've turned a bit of a corner," Carnival Corp. President and CEO Arnold Donald said during a conference call with analysts, noting the year-over-year earnings growth.
Revenue in the period ending May 31 was $3.63 billion, up from $3.47 billion last year.
Carnival Corp. saw revenue yield improvement for its continental European brands in the quarter as well as favorable pricing trends in Europe and North America, Donald noted.
Although net revenue yields fell 2.2 percent, results were better than its earlier guidance of a decrease of 3 to 4 percent, the cruise company said.
The cruise operator's 10 brands include Carnival Cruise Lines, Princess Cruises, Holland America Line, Seabourn, Cunard and Costa Cruises.
In the third-quarter, Carnival Corp. is expecting net revenue yields to be flat to down 1 percent compared to the prior year, because of significant capacity increases in the Caribbean.
As for its 2014 outlook, fleetwide booking volumes for the next three quarters are slightly behind last year at higher prices since March, Carnival Corp. said. Meanwhile advance cruise bookings for the rest of 2014 are slightly ahead of last year at higher prices.
"Collectively our brands are gaining momentum in our efforts to drive higher ticket prices and we continue to expect sequential improvement in revenue yields, despite a more competitive environment in the Caribbean this summer," said Donald, in the company's earnings release.
Shares slipped $1.18 or nearly 3 percent to $38.23 in trading Tuesday on the New York Stock Exchange.
firstname.lastname@example.org, 954-356-4209 or Twitter@TheSatchreport.
(c)2014 the Sun Sentinel (Fort Lauderdale, Fla.)
Visit the Sun Sentinel (Fort Lauderdale, Fla.) at www.sun-sentinel.com
Distributed by MCT Information Services