The Carnival Plc (LON: CCL) share price rose 5.34%, extending yesterday’s gains following the release of upbeat Q2 2023 earnings results. The company generated $4.9 billion in revenues during Q2 but still made a U.S. GAAP net loss of $407 million, or $(0.32) diluted EPS.
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The cruise ship operator's losses were at the better end of the March guidance range of $425 to $525 million net loss for Q2 2023. The company’s adjusted EBITDA for Q2 2023 was $681 million, at the high end of the March guidance range of $600 to $700 million.
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Carnival saw a record jump in booking for the period, which surpassed the 2019 bookings before the COVID-19 pandemic brought its business to a halt. The new record high booking translated into a surge in total customer deposits to an all-time high of $7.2 billion as of May 31, 2023.
The previous record for customer deposits was $6.0 billion, achieved at the end of May 31, 2019. The cruise ship operator also noted that Cash from operations and adjusted free cash flow were positive in the second quarter of 2023. The company expects continued growth in adjusted free cash flow to be the primary driver for paying down debt over time.
Carnival noted that it experienced record bookings in its seasonally strong first quarter, but the trend accelerated in Q2 and showed no signs of stopping in Q3 2023. The record bookings will continue driving the company's improved cash flows and may lead to profitability.
The cruise ship operator also updated its full-year guidance, where it now expects to generate adjusted EBITDA of $4.10 billion to $4.25 billion, above the March guidance’s range.
Carnival Corporation & plc’s CEO Josh Weinstein commented: “We reached a meaningful inflexion point for revenue this quarter, with net yields surpassing 2019’s strong levels, and we achieved positive operating income, cash from operations and adjusted free cash flow. We are already executing our strategy to grow revenue by taking up ticket prices, even while maintaining record onboard spending levels, building occupancy and growing capacity.”
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The Carnival share price.
The Carnival share price rose 5.34% to trade at 1139.8p, from Tuesday’s closing price of 1082.0p.
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