Carnival Corporation Reports 15% Revenue Growth, Net Income Turnaround in Q3 2024

Carnival Corporation & PLC reported significant financial improvements for the three and nine months ended August 31, 2024, compared to the same periods in 2023. Revenues for the third quarter reached $7,896 million, a 15% increase from $6,854 million in 2023. For the nine months, revenues rose to $19,083 million from $16,197 million, marking a 17.5% increase.

Operating income for the third quarter was $2,178 million, up from $1,624 million in the prior year, while for the nine months, it increased to $3,013 million from $1,572 million. Net income for the third quarter was $1,735 million, compared to $1,074 million in 2023, and for the nine months, it turned around to $1,613 million from a loss of $(26) million. Basic earnings per share for the third quarter rose to $1.37 from $0.85, and diluted earnings per share increased to $1.26 from $0.79.

The growth in revenues was primarily driven by a 19% increase in passenger ticket revenues, which reached $12.6 billion for the year-to-date period, and a 15% rise in onboard and other revenues to $6.5 billion. The North America (NAA) segment saw a 19% increase in passenger ticket revenues, attributed to higher demand and ticket prices, alongside a 10% capacity increase. The Europe segment also reported a 21% increase in passenger ticket revenues, driven by strong demand and higher occupancy rates.

Operating expenses increased by 10% to $11.8 billion, influenced by a 5.3% capacity increase and higher commissions and transportation costs. Selling and administrative expenses rose by 9.5% to $2.4 billion. Despite these increases, the company achieved a consolidated operating income of $3.0 billion, up from $1.6 billion in 2023.

Strategically, Carnival announced the sunset of the P&O Cruises (Australia) brand, consolidating operations into Carnival Cruise Line by March 2025, with no expected material impact on financial statements. The company also reported a decrease in long-term debt to $26,642 million from $28,483 million, while total current liabilities increased to $12,265 million from $11,481 million.

As of August 31, 2024, Carnival had cash and cash equivalents of $1,522 million, down from $2,415 million at the end of November 2023. Total current assets also decreased to $3,626 million from $5,266 million. Customer deposits rose to $6.8 billion, up from $6.4 billion, reflecting strong demand for future cruises. The company generated $5.0 billion in net cash flows from operating activities for the nine months, an increase of $1.7 billion compared to the previous year.