Carnival Corporation & plc has recently released its 10-K report, providing a detailed look at its financial performance and operations. The company, founded in 1972 and headquartered in Miami, Florida, offers leisure travel services globally through its various cruise lines, including Carnival Cruise Line, Princess Cruises, Holland America Line, and others. It operates port destinations, private islands, and a solar park, and also owns and operates hotels, lodges, and motor coaches. Carnival Corporation & plc operates through four segments: NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other.
In the 2024 Executive Overview section of the 10-K report, Carnival reported several significant milestones, including record revenues of $25 billion, a full year operating income of $3.6 billion, and all-time high cash from operations of almost $6 billion. The company also achieved higher ticket prices for 2024 versus 2023 for all of its major cruise lines and recorded record booking trends and year-end customer deposits. Carnival focused on reducing interest expense and rebuilding its investment-grade balance sheet, making debt prepayments of over $3 billion in 2024 and reducing its debt balance by over $8 billion from the peak in January 2023.
Carnival welcomed three new ships in 2024 and launched new marketing campaigns across all its brands. The company also made progress towards its sustainability goals, reducing greenhouse gas emission intensity by approximately 17.5% compared to 2019, on track to achieve its targeted reduction of 20% by the end of 2026. Carnival Corporation & plc is also pursuing its aspiration of net zero emissions by 2050 and investing in technologies to support its sustainability goals.
The report also discussed critical accounting estimates related to ship accounting, ship depreciation expense, valuation of ships, and contingencies. Carnival mentioned that it believes the volatility in the cost of fuel is reasonably likely to continue to impact its profitability in both the short and long-term. The company also acknowledged that the increasing global focus on climate change, including the reduction of greenhouse gas emissions and new regulatory requirements, is reasonably likely to have a material negative impact on its future financial results.
Carnival has historically earned its cruise revenues from the sales of passenger cruise tickets, onboard goods and services, and other related sources. The company is focused on delivering long-term value for its shareholders through improved operational execution across its cruise lines.
Today the company's shares have moved 0.5% to a price of $25.55. Check out the company's full 10-K submission here.
