Carnival bookings strong but lowers guidance

18th Jun 2009 14:56

Shares in cruise operator Carnival rallied as its second quarter came in slightly better than expected, despite revealing a sharp fall in revenues and profits.Carnival blamed lower cruise ticket prices, weaker onboard spending and unfavourable currency exchange rates for the decline, though passenger bookings are up by a quarter since March.Profits in the three months to June slipped to $270m from $396m. For the six months, profits dropped to $508m from $622m. Second quarter revenues fell to $2.95bn from $3.35bn, with the first six months in total seeing a drop from $6.53bn to $5.81bn.Going forward, Carnival expects net revenue yields for the full year 2009 to decrease 10 to 12% in constant currency terms. Net cruise costs excluding fuel for the full year 2009 are expected to be in line with the prior year on a constant dollar basis.Full year 2009 earnings per share should come in the range of $2.00 to $2.10 versus previous guidance range of $2.10 to $2.30 due primarily to higher forecasted fuel prices, Carnival added.Third quarter earnings are forecast between $1.15 to $1.19, versus $1.65 in 2008.""As we have progressed throughout the year, booking volumes have continued to accelerate with less discounting, as consumers have come to recognize the extraordinary value proposition our cruise vacations represent," chief executive Micky Arison said.