Advertisement
UK markets close in 6 hours 59 minutes
  • FTSE 100

    7,961.88
    +29.90 (+0.38%)
     
  • FTSE 250

    19,797.36
    -13.30 (-0.07%)
     
  • AIM

    741.80
    -0.31 (-0.04%)
     
  • GBP/EUR

    1.1678
    +0.0009 (+0.08%)
     
  • GBP/USD

    1.2593
    -0.0045 (-0.36%)
     
  • Bitcoin GBP

    56,130.25
    +666.36 (+1.20%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,248.49
    +44.91 (+0.86%)
     
  • DOW

    39,760.08
    +477.75 (+1.22%)
     
  • CRUDE OIL

    81.61
    +0.26 (+0.32%)
     
  • GOLD FUTURES

    2,215.80
    +3.10 (+0.14%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,492.61
    +15.52 (+0.08%)
     
  • CAC 40

    8,237.00
    +32.19 (+0.39%)
     

Caribbean demand sees Carnival push up 2017 earnings guidance

The Azura, a cruise ship owned by P&O, whose parent company is Carnival - © Dean Hoskins / Alamy Stock Photo
The Azura, a cruise ship owned by P&O, whose parent company is Carnival - © Dean Hoskins / Alamy Stock Photo

Shares in cruise line operator Carnival were buoyant after the dual-listed company pushed up earnings expectations for 2017 after increased demand for the Caribbean.

The owner of brands including Carnival Cruise Line as well as P&O and Costa said it now expected adjusted earnings per share to be between $3.50-$3.70 compared to the December guidance of $3.30-$3.60 and the 2016 figure of $3.45.

Chief executive Arnold Donald said its peak booking season had seen bookings at “considerably higher prices” and with fewer remaining cruises to sell this year compared to 2016, it had been able to push up earnings guidance.

ADVERTISEMENT

Earnings for the three months ended February 28 showed pre-tax income of $354m compared to $143m for the same period in 2016. A major factor in this was a net $27m gain on fuel-related derivatives this quarter under review compared to a net $236m loss in the same quarter in 2016.

Carnival

The company carried 2.76m passengers in the three-month period under review compared to 2.55m passengers, which helped push onboard spending to $978m compared to $923m in the 2016 period. Total revenue hit $2.80bn for the three months to February 28 compared to $3.65bn for the same period the prior year.

Mr Arnold said the company announced its Ocean Medallion at Las Vegas’s Consumer Electronics Show in January, which will debut on Princess Cruises’ Regal Princess in November this year. The medallion will provide various services, including helping customers find friends and family as well as gain access to various parts of the ship.

The company’s Fathom brand - which is aimed more towards millennials keen on so-called impact travel where volunteering excursions are organised - has also set sail to Cuba from the US, opening up the route for Carnival Cruise Line to start sailing along the route from June.

READ MORE ABOUT: