Some of Carnival Corp’s bonds moved higher by 1.2-1.4 points after the cruise company reported a smaller than expected 1Q 2023 loss whilst beating revenue estimates. The company posted an adjusted net loss of $0.55/share in the previous quarter vs. estimates of a loss $0.60/share. Its adjusted net loss of $690mn was better than the December guidance range it gave of $750-850mn in net losses. Its revenues stood at $4.43bn vs. $1.62bn a year ago and also beat estimates of $4.33bn. Carnival’s improved financial performance comes on the back of strong demand for leisure travel, higher ticket prices and strong on-board spending. CEO Josh Weinstein said, “We are still experiencing a record wave season, which started early, gained strength and has extended later into the year”. Its cash from operations turned positive during the quarter and liquidity stood at $8.1bn. Carnival’s occupancy rate stands at over 70% for the remainder of 2023. The company said that the continued growth in operating cash will be the driver to paying down its debt over time. It has $13.4bn in bond principal repayments due until 2027.
Carnival’s 6% 2029s were up 1.4 points to trade at 78.48, yielding 10.93%.