What is the financial situation of Carnival Cruise Lines?

Key Takeaways. Carnival Corporation posted record revenue and its first quarterly profit since 2020, thanks to a surge in bookings as the post-pandemic travel boom continued unabated. Net income came in at $1.07 billion, or 79 cents per share, which exceeded estimates of 73 cents.



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Carnival (CCL 0.16%) has seen a rapid improvement in operations in 2023 and recently reported record quarterly revenue. But it's still dealing with tens of billions of dollars in debt from the pandemic that's an overhang on the stock.

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Covid-19 shut the industry for the best part of two years, leaving the Big Three — Carnival Corp, Royal Caribbean Group and Norwegian Cruise Line Holdings — under an unprecedented pile of debt that they will be paying down for years. Carnival is $35bn in the hole, Royal Caribbean owes $24bn and Norwegian owes $13.4bn.

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Now, more than a year after it resumed operations, its losses continue. In the first nine months of 2022, Carnival lost $4.5 billion. During the same period in fiscal 2021, Carnival reported a net loss of $6.9 billion, a time when it had barely begun to return to the seas. Still, improvements are coming steadily.

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The world's largest cruise line operator is trading 126% higher in 2023. It might not be too late to hop aboard. The waves keep rising for Carnival (CCL -6.60%). Shares of the world's largest cruise line operator have more than doubled this year, and the Wall Street accolades keep coming.

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Carnival now expects adjusted annual loss per share between 8 cents and 20 cents, compared with its earlier forecast of a loss per share of 28 cents to 44 cents. The company beat second-quarter revenue estimates and posted a smaller-than-expected loss. Our Standards: The Thomson Reuters Trust Principles.

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Many cruise stocks have outpaced the stock market and rewarded investors in 2023. Significant travel growth has helped cruise lines hit revenue records and get closer to profitability. Many of these same stocks also offered dividends and reliably paid them for several years before the pandemic.

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Even with the threat of an impending recession, Carnival Cruise executives and analysts think the cruise line is well positioned to handle any economic downturn. While certainly not recession-proof, Carnival's executive team expressed confidence in the company's long-term outlook.

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Carnival is planning to remove three “smaller-less efficient ships from its fleet,” according to the Fourth Quarter 2022 Business Update.

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Other cruise brands that have shut down over the past four years, almost all citing the financial effects of the pandemic, include luxury line Crystal Cruises and its two Asia-based sister brands, Dream Cruises and Star Cruises; Japan-based Venus Cruises; India-based Jalesh Cruises; Swedish-based Birka Cruises; U.S.- ...

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The Company intends to use the proceeds from the Refinancing Transactions to repay a portion of the borrowings under the Company's existing first-priority senior secured term loan facility maturing in 2025.

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(CCL) in the U.S. and as Carnival plc (CCL) on the London Stock Exchange. The top individual shareholders of Carnival are Randall J. Weisenburger, Arnold W. Donald, and David Bernstein, and the top institutional shareholders are Micky Meir Arison, Vanguard Group Inc., and Public Investment Fund.

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Cruise lines make money primarily from ticket sales, customers spending aboard their ships while cruising, sales of add-on travel services such as insurance and excursions, advertising, and sponsorship deals with brands.

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With this debt repayment, we now expect our year end debt balance to be less than $32.0 billion , an improvement over the November 30, 2023 debt balance of less than $33.0 billion provided in our June guidance.

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