Carnival Corporation & Plc Reports Record
Third Quarter Results And Authorizes
Replenishment Of $1 Billion Share Repurchase Program
MIAMI (September 27, 2018) Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced U.S. net income of $1.7 billion, higher than U.S. GAAP net income for the third quarter of 2017 of $1.3 billion. Revenues for the third quarter of 2018 were $5.8 billion, higher than the $5.5 billion in the prior year.
Also in the third quarter, the company authorized the replenishment of its $1.0 billion share repurchase program covering both Carnival Corporation common stock traded on the New York Stock Exchange and Carnival plc ordinary shares traded on the London Stock Exchange.
Carnival Corporation & plc President and Chief Executive Officer Arnold Donald stated, “Strong execution delivered the highest quarterly performance in our company’s history, overcoming fuel and currency headwinds. At the same time, our strong cash flow and balance sheet enabled us to accelerate our opportunistic share repurchase program, investing almost $750 million in Carnival stock since the beginning of the third quarter, bringing the total investment to $4.4 billion in just three years.”
Highlights from the third quarter include:
- The signing of an agreement between Princess Cruises and Italian shipbuilder
Fincantieri S.p.A to build two new liquefied natural gas (“LNG”) cruise ships that will be delivered in 2023 and 20255, bringing the total to 11 LNG cruise ships on order.
- P&O Cruises (Australia) announced the sale of Pacific Jewel, which will leave the
fleet in March 2019.
- Holland America Line announced the sale of Prinsendam, which will leave the fleet in July 2019.
- P&O Cruises (UK) announced the sale of Oriana, which will leave the fleet in August 2019.
- Seabourn received approval to begin sailing to Cuba from Miami and San Juan, becoming our third cruise brand currently approved to sail to Cuba.
Based on the third quarter results and booking strength for the fourth quarter of 2018, the company now expects full year 2018 net revenue yields in constant currency to be up approximately 3.5 percent compared to the prior year.
Now for Shareholders taking the above factors into consideration, the company expects full year 2018 adjusted earnings per share to be in the range of $4.21 to $4.25 compared to 2017 adjusted earnings per share of $3.82.
“We are on track to achieve double digit return on invested capital in 2018 as we deliver upon our strategy to create demand in excess of measured capacity growth, all while containing costs and leveraging our industry leading scale.
Going forward, we remain on a path toward continued growth in earnings and returns, driven to a greater degree by capacity increases as we add more efficient ships, replacing less efficient capacity. We believe the plans we have put in place will maximize returns to shareholders over time as we continue to execute in an industry that is both under-penetrated and capacity constrained.”
“At the same time, we remain committed to returning cash to shareholders as evidenced by the growth in our recurring dividend, currently distributing $1.4 billion annually, accompanied by our recently replenished share repurchase program.”
First Half of 2019
At this time, cumulative advanced bookings for the first half of 2019 are ahead of the prior year at prices that are in line with the prior year. Since June, booking volumes for the first half of next year have been running significantly higher than the prior year at lower prices compared to the prior year. Based on these booking trends, the company expects continued net revenue yield improvement for the first half of 2019.
About Carnival Corporation & plc
Carnival Corporation & plc is the world’s largest leisure travel company and among the most profitable and financially strong in the cruise and vacation industries, with a portfolio of 10 dynamic brands that include nine of the world’s leading cruise lines.
Together, the corporation’s cruise lines operate 103 ships with 234,000 lower berths visiting over 700 ports around the world, with 22 new ships scheduled to be delivered between 2018 and 2025. Carnival Corporation & plc also operates Holland America Princess Alaska Tours, the leading tour company in Alaska and the Canadian Yukon.
Additional information can be found on www.carnival.com, www.princess.com, www.hollandamerica.com, www.seabourn.com, www.costacruise.com, www.aida.de, www.pocruises.com, www.cunard.com, and www.fathom.org.