Carnival Corp has exceeded Wall Street consensus as it introduces a new Sea Change programme that is designed to return the cruise major to an investment-grade credit rating by the end of 2026.
The New York-listed owner posted a $407m net loss for the second quarter of 2023 versus a $1.83bn net loss during the same period last year. As a result, the company registered a $0.32 loss per share for the three-month period, compared to a $1.61 loss per share a year ago.
On an adjusted basis, Miami-based Carnival recorded a $395m net loss for the second quarter against a $1.87bn net loss for the same stage in 2022.
This led to an adjusted loss per share of $0.31 that beat analyst estimates of $0.34 loss per share and the year-ago adjusted loss per share of $1.64.
Second-quarter revenue came in at $4.91bn, more than double the $2.4bn earned in the second quarter of 2022.
“We reached a meaningful inflection 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,” chief executive Josh Weinstein said in a statement.
“We are already executing on our strategy to grow revenue by taking up ticket prices, even while maintaining record onboard spending levels, building occupancy and growing capacity.”
In addition to achieving strong revenue, Carnival has implemented a Sea Change programme that is focused on getting the company’s credit rating back to investment grade.
“We are focused on the durable revenue growth and margin improvement that will deliver on our Sea Change Program and propel us on the path to delevering and investment grade leverage metrics,” Weinstein said.
Carnival did not say how it would address its current long-term debt of $31.9bn in order to get its credit rating to investment grade.
“We are excited about all the opportunities ahead and the potential to create outsized value for our shareholders as we work towards our 2026 targets,” he said.
