Sun Sentinel Broward Edition

Cruise line posts boost in profits

Net income rises to $222M in 2Q

- By Arlene Satchell Staff writer

Carnival Corp. & PLC posted significan­tly higher profits in the second quarter, aided by higher onboard revenue and lower costs, the company announced Tuesday.

The world’s largest cruise company, based in Miami, reported that net income increased 126 percent to $222 million, or 29 cents per share, up from $98 million, or 13 cents a share, a year earlier.

During the quarter ending May 31, the company’s North American brands saw strong improvemen­ts in revenue yield, with its Carnival Cruise Line brand “performing particular­ly well” in the period, Carnival Corp. President and CEO Arnold Donald said in an earnings release.

He said efforts to increase cruise demand and leverage scale across its cruise brands helped buoy ticket prices and onboard revenue during the quarter.

Total revenue in the quarter totaled $3.59 billion, compared with $3.63 billion last year.

The quarter’s results beat analysts’ estimates on both revenue and earnings per share, Carnival’s stock slipped 44 cents to $49.48 in trading Tuesday on the New York Stock Exchange.

Bookings for the next

three quarters are running well ahead of last year during the last 13 weeks, but at slightly lower prices due to currency effects, Carnival said.

“Current strength in booking volumes clearly demonstrat­es strong con-

sumer demand for our brands, leaving less inventory remaining for sale,” Donald said. “We are stepping up our marketing investment for the remainder of the year to further solidify our base of business for 2016.”

To that end, the cruise company has increased its 2015 earnings per share guidance, which is now ex-

pected to be in the range of $2.35 to $2.50 per share, compared with $1.93 earnings per share in 2014.

For the third quarter, Carnival said it’s expects earnings per share to be in the range of $1.56 to $1.60 a share, versus $1.58 per share a year ago.

 ??  ?? Arnold Donald is president and CEO of Carnival.
Arnold Donald is president and CEO of Carnival.

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