Carnival Conference Call Highlights
Shares of Carnival (NYSE: CCL) closed Tuesday down 2.99 percent following its second quarter earnings release.
Below are some highlights and key takeaways from its conference call:
• And so first of all, it feels like we've turned a bit of a corner.
• We achieved not only better than expected results for the second quarter, but we also achieved year-over-year earnings growth.
• We were pleased to see our European brands revenue yields turn positive
• Favorable pricing trends emerging not only in Europe but in North America as well.
• Every effort to maintain pricing integrity despite aggressive price moves by other cruise lines, even if it means giving up a little more occupancy than we had planned.
• Capacity growth in both Asia and Australia is up mid to high teens next year
• We were the first major cruise company to enter China.
• we have home ported in China now for over eight years and we can feel the momentum building.
• During the quarter we announced deploying a fourth ship to serve the fast-growing China market next year.
• Announced the transfer of two smaller Holland America ships to support the growth of the P&O Australia brand.
• Also made significant progress on a number of strategic initiatives this quarter, which we expect will improve our operating performance going forward.
• Absorbed the smaller Ibero Cruises brand in Spain into the Costa brand by the end of the year.
• Costa's had a leading presence in Spain for many years and is already well-established there.
• We believe the Costa brand can serve our Spanish guests, exceeding their cruise vacation expectations while improving efficiency for our company.
Programs and Initiatives:
• Carnival Cruise Lines launched the first of its Carnival Live concert series this past quarter with a number of sold-out performances.
• In fact, just last week Jennifer Hudson performed sold-out shows on board two of our ships in Cozumel.
• We have received great feedback on the guest experience
• In March, we also officially launched our Foos At Sea [ph] program on Carnival Splendor and in May debuted a new marine-themed children's program, Carnival's Camp Ocean [ph] onboard Carnival Freedom.
• Both programs are extremely popular with our family segment and will be rolled out fleet-wide across the Carnival brand.
• Increasing our fuel efficiency fleet-wide continues to be a cornerstone of our strategy to improve returns.
• We remain on track in our effort to reduce fuel consumption by 25% in 2014 when compared to 2007.
• We have made progress on a number of other initiatives to leverage our scale as well.
• Our brand segmentation study is well underway and we are conducting conversations with thousands of consumers, both cruisers and non-cruisers
• We've reviewed 30 million guest records to understand what our guests love about our brands and what we can do to increase loyalty across our portfolio.
• We believe it to be the largest ever quantitative market research study of the cruise and leisure market.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.