Carnival share price cruises higher as group posts first-quarter results

Shares in Carnival (LON:CCL) have jumped more than three percent in London this afternoon, as the cruise operator updated investors on its first-quarter performance. As of 14:38 BST, Carnival’s share price had jumped 3.61 percent to 3,678.00p, outperforming the benchmark FTSE 100 index which currently stands 1.58 percent higher at 6,202.43 points. In the year-to-date, the group’s shares have lost 5.48 percent of their value, as compared with a 0.65-percent fall in the Footsie.

**Highlights from Carnival’s statement:**
1Q net revenue yields increased 5.7% in constant currency compared to prior year, better than December guidance, up 3.5% to 4.5%
1Q net cruise costs excluding fuel per available lower berth day (“ALBD”) increased 1.6% in constant currency compared to prior year, better than December guidance, up 2.5% to 3.5%
1Q adjusted net income was $301 million, or earnings per share (diluted) of $0.39, before U.S. GAAP unrealized losses on fuel derivatives and other net charges of $159 million, or $0.21 per share

At this time, cumulative advance bookings for the remainder of 2016 are well ahead of the prior year at slightly higher prices
FY 2016 net revenue yields are expected to increase approximately 3% in constant currency compared to the prior year
FY 2016 net cruise costs excluding fuel per ALBD are expected to be up approximately 2% in constant currency compared to the prior year
FY 2016 adjusted earnings per share (diluted) are expected to be in the range of $3.20 to $3.40, compared to December guidance of $3.10 to $3.40 and $2.70 in FY 2015
2Q 2016 adjusted earnings per share (diluted) are expected to be in the range of $0.34 to $0.38, compared to $0.25 in 2Q 2015
President and Chief Executive Officer Arnold Donald commenting on these results:
“Our teams delivered another strong quarter of operational improvement by creating increased demand for our brands and leveraging our scale which resulted in revenue yield improvement approaching 6 percent and the near doubling of first quarter adjusted earnings. We thank our millions of loyal guests and valued travel professional partners around the globe for their patronage and support.”
“Our ongoing guest experience innovations coupled with our increasingly effective marketing and communication efforts have driven additional demand for our brands, resulting in a strong booked position. The lower levels of inventory remaining for sale for the balance of the year, particularly for our peak summer period, positions our brands well for continued revenue yield growth and builds confidence in our full year earnings forecast.”
“Additionally, the underlying strength of our operating performance, leading to sustained earnings and cash flow growth, has accelerated the return of capital to shareholders through our stepped up share repurchase program. Since resuming the share repurchase program, we have bought back approximately 27 million shares returning $1.3 billion to shareholders in the last six months.”
As of 14:41 BST, Wednesday, 30 March, Carnival plc share price is 3,620.50p.