GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Carnival plc Reports Operating Results (10-Q)

July 01, 2010 | About:
10qk

10qk

18 followers
Carnival plc (CUK) filed Quarterly Report for the period ended 2010-05-31.

Carnival Plc has a market cap of $6.92 billion; its shares were traded at around $32.41 with and P/S ratio of 0.6. The dividend yield of Carnival Plc stocks is 0.6%. Carnival Plc had an annual average earning growth of 34.9% over the past 10 years.CUK is in the portfolios of Jim Simons of Renaissance Technologies LLC, John Hussman of Hussman Economtrics Advisors, Inc..

Highlight of Business Operations:

As of June 22, 2010, we said that we expected our fully diluted earnings per share for the third quarter and full year of 2010 would be in the ranges of $1.43 to $1.47 and $2.25 to $2.35, respectively. Our guidance was based on current fuel prices of $493 per metric ton and $495 per metric ton for the 2010 third quarter and full year. In addition, this guidance was also based on 2010 third quarter and full year currency rates of $1.24 and $1.29 to the euro and $1.48 and $1.51 to sterling, respectively.

Almost 76% of 2010 total revenues is comprised of cruise passenger ticket revenues. Cruise passenger ticket revenues increased by $185 million, or 8.3%, to $2.4 billion in 2010 from $2.2 billion in 2009. This increase was caused primarily by our 8.1% capacity increase in ALBDs, which accounted for $182 million. Our capacity increased 4.0% for our North American cruise brands and 13.3% for our European cruise brands in 2010 compared to 2009, as we continue to implement our strategy of expanding in the European cruise marketplace. Our cruise passenger ticket revenues were adversely impacted by lower air transportation revenues due to fewer guests purchasing their air travel through us and from cruise vacation disruptions caused by the volcanic ash from Iceland and the earthquake in Chile (see Key Performance Non-GAAP Financial Indicators).

The remaining 24% of 2010 total revenues is substantially all comprised of onboard and other cruise revenues. Onboard and other cruise revenues increased by $64 million, or 9.5%, to $737 million in 2010 from $673 million in 2009. This increase was driven principally by our 8.1% capacity increase in ALBDs, which accounted for $55 million. Onboard and other revenues included concession revenues of $218 million in 2010 and $199 million in 2009.

Operating costs increased $208 million, or 11.0%, to $2.1 billion in 2010 from $1.9 billion in 2009. This increase was caused primarily by $162 million of higher fuel prices and our 8.1% capacity increase in ALBDs, which accounted for $150 million. These cost increases were partially offset by lower air transportation costs due to fewer guests purchasing their air travel through us, fewer dry-docks and benefits from cost reduction programs and economies of scale.

Net cruise costs increased $225 million, or 13.3%, to $1.9 billion in 2010 from $1.7 billion in 2009. This was caused by our 8.1% capacity increase in ALBDs between 2010 and 2009 that accounted for $137 million, and a 4.9% increase in net cruise costs per ALBD, which accounted for $88 million in 2010 compared to 2009 (gross cruise costs per ALBD increased 1.6%). The 4.9% increase in net cruise costs per ALBD was primarily the result of a 64% increase in fuel price to $498 per metric ton in 2010, which resulted in an increase of $162 million. Partially offsetting these increases were fewer dry-docks and benefits from cost reduction programs and economies of scale, as well as the timing of certain expenses. Net cruise costs per ALBD as measured on a constant dollar basis increased 4.2% in 2010 compared to 2009. On a constant dollar basis, net cruise costs per ALBD excluding fuel decreased 4.9% in 2010 compared to 2009. Gross cruise costs increased $221 million, or 9.9%, to $2.5 billion in 2010 from $2.2 billion in 2009 for largely the same reasons as discussed above for net cruise costs, partially offset by lower air transportation costs.

Over 76% of 2010 total revenues is comprised of cruise passenger ticket revenues. Cruise passenger ticket revenues increased by $324 million, or 7.3%, to $4.8 billion in 2010 from $4.5 billion in 2009. This increase was caused primarily by our 8.9% capacity increase in ALBDs, which accounted for $395 million, as well as another $100 million due to a weaker U.S. dollar against the euro and sterling in 2010 compared to 2009. Our capacity increased 4.5% for our North American cruise brands and 13.9% for our European cruise brands in 2010 compared to 2009, as we continue to implement our strategy of expanding in the European cruise marketplace. Our cruise passenger ticket revenue increase was partially offset by a $171 million decrease, primarily due to lower air transportation rev

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 5.0/5 (1 vote)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide