Despite fears of the ‘Costa effect’, Carnival Corp has reported its Q3 net income was the same as last year. THE company made a profit of US$1.33 billion in the 2012 third quarter, almost equal to US$1.34 billion in the corresponding period in 2011. Revenues for this third quarter were...
Despite fears of the ‘Costa
effect’, Carnival Corp has
reported its Q3 net income was
the same as last year.
THE company made a profit of US$1.33
billion in the 2012 third quarter, almost equal
to US$1.34 billion in the corresponding period
in 2011.
Revenues for this third quarter were US$4.7
billion compared to $5.1 billion for the prior year.
According to the latest financial
announcement, Carnival managed to make
more money from its passengers.
“The significant efforts of our brand
management teams were successful in
partially mitigating the decline in cruise ticket
prices,” said chairman and CEO Micky Arison.
Onboard revenue yields (constant dollars
excluding Costa) improved 3% during the
quarter.
There was also a 3% reduction in cruise costs
(constant dollars excluding fuel) as well as a 6%
reduction in fuel consumption on a unit basis.
Arison noted that the company repurchased
two million shares valued at US$67 million,
demonstrating a continued commitment to
returning excess free cash flow to
shareholders.
The reporting of the better-than-expected
profits on Tuesday sent shares in New York 3%
higher.
In the future, Carnival plans to focus on
emerging markets, including the shifting of
Costa Atlantica to Singapore and then
Shanghai.
The statement said: “For 2013, the company
will capitalise on the increasing popularity of
cruising in Asia with the deployment of a
second Costa ship in China and the launch of a
new Princess Cruises program for the Japanese
market.”
