CUK Q3 2024 Earnings

Call Details

• Call Title: Carnival Cruise Lines Q3 2024 Earnings Call
• Date: September 30, 2024 at 2:00 PM UTC
• Management Team:
  • Josh Weinstein (Chief Executive Officer)
  • David Vernon (Chief Financial Officer)
  • Beth Roberts (Senior Vice President, Investor Relations)
  • Mickey Erickson (Chair)

Call Summary

Financial Performance

• Revenues for Q3 2024 reached almost $8B, approximately $1B higher than last year's record levels.
• Q3 2024 adjusted EBITDA exceeded $2.8B, which was up $600M year-over-year and $160M above prior guidance.
• Third quarter net income was over 60% higher than the prior year, contributing to double-digit ROIC at quarter end.
• Company expects full-year adjusted EBITDA of $6B, which is $400M above original December guidance and described as a record outcome.
• Full-year September net income guidance was raised to $1.76B, a $210M improvement versus June guidance.
• Customer deposits in Q3 set a record at $7B, reflecting the strong booked position across years.

Guidance

• Q4 2024 yield guidance is set at up 5% versus prior year, which company states is driven primarily by price.
• Full-year 2024 yields are expected to improve to 10.4% year-over-year after Q3 results were incorporated.
• Full-year cruise costs without fuel per ALBD are expected to be approximately up 3.5% year-over-year after adjustments.
• Q4 2024 cruise costs without fuel per ALBD are expected to be up about 8% year-over-year, reflecting higher dry dock days and elevated advertising.
• Company reiterated that 2024 guidance improvements reflect $40M of Q3 revenue benefit and roughly $100M of Q3 cost benefit flowing to the full year.
• Management emphasized to judge cruise costs per ALBD on a full-year basis due to seasonal re‑timing of items like dry dock and advertising.