Carnival Conference Call Highlights

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Shares of Carnival Corp.
CCL
are trading down over two percent following its second quarter earnings release on Tuesday. 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. International 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 Inititaives: • 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.
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Posted In: EarningsNewsGuidance
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