CCL.L - Earnings call 4 2022 | Carnival Corporation & plc

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Josh Weinstein

Good morning. This is Josh Weinstein. Welcome to our fourth quarter 2022 business update conference call. I'm joined today by our Chair, Micky Arison; our Chief Financial Officer, David Bernstein; and our Senior Vice President of Investor Relations, Beth Roberts.

note be of forward-looking. please this remarks begin, will call I that our some on Before Therefore, cautionary press statement must in I refer today's release. you to the

upward close Our as on to business an continues we gap the rapidly to XXXX. accelerate trajectory

XXXX already gaining our strong we to diems, on per exceeding fact, and revenue In return profitability. are we're momentum

team ships believe a islands members to start-up, with guests. our and back and step XX-month our footprint monumental journey restarting largest XXX,XXX over back, Taking reboarding world's X and what welcoming service, our unmatched million Alaska and unrivaled of portfolio this to in the private we while a X plus Yukon, all returning the port destinations year, XX we've nearly completed land-based be scale,

around sincerely for to see I thank world and determination teams completion. to global our it the sheer that, that took ingenuity the For through

built the the less a we during XXXX. Throughout credits. record-breaking constant in significantly record from XX-point quarter, in this, process, levels of have we fourth overcoming X% was levels we returned this quarter. per and per in another points We onboard the dollar in XXXX's quarter. of fourth each higher revenue fourth of revenue XX diems higher. impact, been on in the of aggressively than And X the cruise passenger higher growing for achieved XX% to future year than Without cruise XXXX this our sustained XX% would gap higher capacity XXXX, day And effect X% the XXXX, have service fleet full on the capacity to as occupancy points our quarter our top first reaching in dilutive

inflationary adjusted costs to through and our up We're per also up XX% of excluding increase high in ALBD living QX. in reduced worked the to in our and from mitigate as cruise constant not base in continue the QX we've in. restart We environment all the currency absorb sight of we've cost been impacts losing fuel XX%

ramped to significantly first-time and of improve, we've the support And and the been has XXXX continued sales been partners, percentage of drive smarter levels Thanks also work We've teams time advertising having our future up to amazing our to our demand. guests now. our trade this gap hard reduced shoreside already closing sequentially from headcount levels. for with working significantly some XXXX to

X the first Toscana Venture. Princess of We AIDAcosma, delivered finest including ship, Costa Discovery our Carnival for the luxury and expedition world, in stunning our as well new Celebration, Seabourn flagships brands, as

All of these ships were higher purpose-built returns. to generate

We game broke we do new Line, our to baseline. all be environmental impact while private working compared millions a Port to we much-needed time, vacation doing reduction destination, benefiting a XX% and while experiences best, Most in ground in our unforgettable items the delivering waste changer will importantly, which are carbon port and from unique our what minimize guests food X captured XXX to for islands guests. single-use X% ever destinations, exclusive on and reduction million less our with back which visits million at existing same Bahama Grand more than Carnival Cruise our from a and a to of intensity,

outside with And sourced in of North truly of guests we are global company a America those XX% XXXX.

tailor source offerings greater and Australia, allows brand our as markets America, carried believe brand the practically such in We in any than of carried U.K., that outside or we cruise more peers In the largest each North having and X us #X France portfolio the total. to fact, penetration loyalty our and Germany, gain is and and specific the those stronger the to of U.S. to Italy, Spain, strategy enabling profit. of our markets, foundation generate us experiences people

the Ukraine environment, this has uneven an the around European COVID that the war had reopening world are on there cruise direct of factors in in countries. the impact though, had travel of In outsized the on an current results; our aftermath have X and impact more

of trajectory, the for has most factors. are upward pace these brands exposed trailed on all of While an recovery our to heavily brands the those

guests. was deployment triggered of point non-North ago, reopening XXXX, has of through of Japan vast time, and and were X In guest representing closer Australia's lagging impact in felt XX% Baltics. for and of reopening XXXX. changes X/X particularly from our The of years The approaches sourced Costa's America million and we the American people XX% The Costa year came guests, anticipate Australia, Princess, Asia first North a At guests Princess' this be sourcing is majority guests will half where the in and multiple behind. markets continue these of is to as X these to

to has Of yet reopen. course, China also

highly in with Line to rightsize significant ships competitive Asia X successful to Costa's home This its in taken closer addition another less efficient with of deployments X from Costa removal core our the to brand. planned the operate presence with Given their previously This fleet Cruise to the we've a positions brand fleet. Costa markets ships Europe. Carnival ships with actions to year-round the pre-pause, transferring Continental focused announced in is smaller, on Costa well X

the encouraged the been volumes booking recent in for brand. by already Costa have strength We

fact, these booking navigate quarter fourth they Costa's booking first in month, XXXX of the markets curve. in the core for were above XXXX XXXX closer a of as volumes In and last quarter levels

in war remains the all Ukraine in for those concerning the regions. The and us especially affected

closer regions, German war greater consumer both for and uncertainty booking patterns. the weighed confidence impacts those on heavily the in resulting Costa AIDA, in brand, Given in our associated and have closer and proximity

decisions into new-to-cruise attract closer air deployment alternatives guests we've in and the where reduce the versus well the our helping where friction help bringing cruises, itineraries us that cost To originate to make duration to and believe a lower of made leaning guests live. by closer We manage, port a our this shorter as ships strategic home land-based of more more more well facilitate us travel, positions as overall booking guests to even value proposition environment. us

last our furthered fleet fleet of again This month the with including the coupled introduction ship Cruises in Carnival this when the dispositions cumulative quarter, Arvia have successful nearly capacity. the week. XX more of the of number result bringing addition of Celebration will our new pause delivery of efficient last and We ships, to since efforts for X/X P&O of larger, optimization just consisting

increase with revenues revenue contributing a growth differentiated going more durable to transformation generate along This an in real deliver on experiences and fleet to forward. associated estate even balcony resulted board in X-percentage-point available increase in cabins tremendous onboard

percentage greater also lower We inflation efficiency costs. percentage costs unit remaining operating mitigate will efficiency ship in points with benefit X fuel from level to that higher and X points help

start, will off generation The benefit great to York. creative a and the with program and for New been revenue Our confidence strong launch from of prospects also in building demand high is initiative. Venezia's met Style Carnival Italian having this Fun prices

AIDA and assets Overall, generate hold of thanks over weighted our and have growth excitement our towards and profitability highest XX-year XXXX compared just Cruises along revenue time. will X capacity P&O dividends path is no And X% ships build higher yields Carnival optimization capacity still XX our portfolio Line, strong in we'll as doubt in to XXXX. efforts, growth demand brands, Cruise demand delivered U.K. fantastic to There is to XXXX, returning we while from retaining the

year. than we Having thanks felt start XX% Princess full the Costa disruptions. Cruises said than source has of North capacity until given versus to XXXX, by absorbing its won't and that, significantly its in will that this source is will is transition more more XXXX, as our XXXX at there capacity the P&O heavily completely high in capacity benefits optimization XXXX. before market more more brand fleet core brand, be growth and are In AIDA Iona Arvia. program have ever capacity from of managing year, markets America, XX% the

to I've with overall As revenue brand I this on been mentioned road support maps. to strategies actively call, previous and drive their growth generation, on working and each the help

past the a our advertising authorized a awareness As significant and increase a in step elevate consideration this for should new longer with take we X/X term. including about to over to nearly to to up investment to draw of brands land-based quarter near and take and share This from those be cruise, our both I've XX% alternatives. position in drive we our particularly impactful result, where the demand activities, as XXXX guests

for exist, alternatives, including a where We value XX% advantage to the next newly strong investments season. continue are brands. in advertising we as to disproportionately frankly, alternatives significant higher particularly captured new plan to from bookings on to to several not important with we launched year should our campaigns marketing communicate land-based digital value increased land-based capitalizing season wave promote summer We creatives to XX% our that, year, head into gap the these

for status focus renewed of paused top-of-funnel sales vacations, on growing force. trade part in cruise recommending been rebuilding the off are every our we the our our and coming of demand a army Having ships advocates relationships through also a X better day, years,

On ensuring best launch and maximize utilizing revenue to sailing brands. pricing we to side, each from philosophies the are practices sharing revenue management across that is brand

robust from revenue Our consistently by sale cabin many initiatives packages streams to teams incremental supported bundled programs. on from are market higher more capturing as and approach value-add focused a upgrade such

the optimizing our of enhancing price the yield building ticket term combination term. to management revenue maintaining while and tools While for and near deliver occupancy, bottom and the long to we are back onboard strategies, line, in the demand integrity

and the Given not the most curve reaching pricing marketplace. are result which protocols this channels the the higher while are rates time into and and have American the year, levels in occupancy variant us of distribution close-in particularly higher achieve North booking still our from revenues, in These preserving friends the in like occupancy as that earlier caused the brand. higher beneficial of channels rates, bulk nature over leaned heavily our in and offered power opaque onboard by to effect disruption revenue for are onboard they the allow friction year, brands to Omicron family from general

the have narrowed a already following start Cancellation North now months, brands our nearing have pushed brands have Since curve narrowed improving lead the the relaxation the in while by in measurable gap month the This than out strengthened applies and our across we board. American the X curve EA that times. by booking pushed year, are lengthening XXXX the protocols. a and of have booking more the volumes globally out gap and seen trends Booking curve.

the many to our early a and We long-awaited given of ahead. to winter And still of the half and enjoyed Black climates. in half marking a booked certain is our consist a recognize not occupancy has first booking are strong restricted first implementing return-to-world of relaxation our lengthier more recent base season exotic Friday European to important December, and an of building It which activity momentum long in including much actuality, conducive deployments cruises the are for heavily cruises continued was much these flights, and strong prior protocols Cyber profiles XXXX environment. itinerary the Monday long-haul in start operating protocols. response to And into wave brands relies on from colder closer this to our deployment, of

expect first and as travel, summer. meaningful way play be itineraries expect per quarter improvement closer-to-home and promotions open bodes in we our XXXX our build for over further we to occupancies hone net XXXX of our activities. aspects on to more cruise reduced occupancy continue pull all gap markets we And back for Nonetheless, relax, as demand, the to on to to to protocols to overall diems revenue-generating and ticket our are historical channels to well even invest This positioned on to opaque continue to out, their brands drive price continue time. higher to we

per end costs provides the XXXX consumption ALBD with underlying to Normalizing sequential progress, fundamentals bottom as of business of XXXX of XX% operating currency XXXX our this year. should XXXX, a complementary effectively up to line. we adjusted set quarterly the sense changes us XXXX revenue of levels of ALBD a more industry-leading and our per to levels fuel which the reach better rival that quarter the for the in deliver On of expect improvement the basis, of and progress first through strength by and we fuel EBITDA price the

look spending cumulative actively managed investment we've expenditures, $XXX and billion. by spend a during by million million capital a $X.X hard XXXX, we to and over $XXX down beyond reduction and Turning XXXX of our annually taken at for reshaped

compliance, while well-being absolutely guests, to rates communities excellence of members we current environment, reprioritized protecting safety We have to serve. and in maintaining lists project the environment reflect our and and the team our commitment the hurdle and

Going balance our in cash sheet repair build will making flow are and over expected forward, accordingly. to new committed strength rigorous time disciplined using we and to be the decisions

We our or lowest order one several and our plus any X incredible have each We just ships is year expedition in XXXX. on in just expect XXXX ship second This for new decades. builds ships through delivered anticipate don't be years to Seabourn order new X luxury thereafter. XXXX in book

back Turning operating to our performance.

We and addressing near-term time. occupancy our per and net measurable post-pause revenue we the growth higher quarter improvements levels are expected effectively portfolio historically drive high in with to transition return challenges over reshaping as have pricing to diems been delivering first

in effectively communicate too land-based level point day to amazing and out, tracking of temporary convenience fast relative a by from of are good at personalized every experiences unparalleled price service an our deliver and and investing at and to day to ultra We in offering support way value we the vacation luxury. mass marketing alternatives sales momentum

And investment-grade remain time, we the bottom more and the industry-leading will this credit and focused on our growth revenue expenditure deleveraging driving strong return and free significant cost profitability. focused higher propel over to ROIC. ratings flow profile our Overall, capital on cash accelerating base and line support path that hits our us to generation, revenue

where our truly These last And our come skill way greatest and an few first our enabling push set we deliver an what for to has This profit wave are that built positioning the now operating long XXXX period armed a greater years always strong incredibly remarkable of a -- will us forward highlight asset. a the been and perseverance bulk they creativity, the with agility known, year, in amount have for of up people and we've are over short generate X help time. strong summer our to forward. We're season year. even us looking efforts we our in years,

With call turn the that, like I'd to David. to over

David Bernstein

start I'll on provide with of Josh. today position. book XXXX. recap and you, some position I'll financial Thank color a our our Then cumulative

position, the records volumes. season, an year strong Turning breaking ended to early multiple to our cumulative and book Monday very start booking we with Black wave on Cyber marking Friday brands

than for average and pricing higher when prices Our is compared and XXXX full strong the year cumulative constant historical position book currency normalized to advanced book at XXXX FCCs position. is higher

XXXX protocols fourth and The quarters a by second, position above have average, position its period, was while that heightened have are been book relaxed. historical all third prime the the book during responsibly which booking first impacted quarter since

result XXXX, to the of sailings for have occupancy first expect points to XXXX. future XXXX with a relaxation quarter gap quarter from percentage in first protocols, of nearly we booking reducing all continue Therefore, the along XXXX X quarter As by fourth volumes our increased.

November billion position XXXX. book fourth cumulative as strong resulted $X.X of a XX, The of the of previous of record record $X.X customer as total XXXX, has November XX, billion deposits quarter in hitting surpassing

about Next, financial talk our let's position.

continued XXXX XXXX to and ahead debt take table by off of getting maturities our maturities. we refinancing XXXX, the During our risk addressing

this, $X.X a we the quarter XXXX with ended As billion of fourth result liquidity. of of

cash in this flow path back balance we expect continue free investment-grade positive credit to to half flow in our be forward, sheet utilizing to flow cash We cash free the Looking on beyond. free anticipate of and an rating. and XXXX XXXX our delever positive turn to back

color up I'll on Now XXXX. finish with some

XXXX. XXXX the to compared we as first and full For to year year capacity full the X.X% quarter growth compared X.X% first expect be when for to XXXX, quarter XXXX

Occupancy just point we on occupancy to to or be for gap to quarter expected XXXX first percentage to slightly levels. is XX close the or XX% XXXX, a XXXX higher, continue During expect better. gap

quarter before, nearly that I a fourth GAAP, enough. is would improvement this As be X-percentage-point said the but from XXXX not

XXXX. the hard close summer with We gap levels occupancy in of to to to expect are working and the historical XXXX returning

XXXX. front, we we compared net pricing the currency per as X% to On current year. X.X% to up X.X% expect great first X% in as and constant quarter to the in new A be accomplishment quarter to diems start dollars first XXXX,

are However, mix brand quarter for XXXX. XXXX net quarter benefit with diems to first expected per first compared from when

our has on XXXX, American they our be up brands. diems significantly to per as as absolute versus onboard During our XXXX with than been brands onboard North brands the revenue while European XXXX brands, our that less were other and expect on spending and in case North is European American

drink to guests more, little gamble but brand a European tend Our lot a less.

second the the make from larger total on onboard And ships, percentage we American occupancy the their will per-passenger longer the their up benefit fill average. diems, mix. North the brands with per with As changing European quarters during no will they of our revenue brand lower third catch and and brands a up historically

do we revenue per diems to net financial anticipate report per non-GAAP XXXX. returning we XXXX, to use for day as used Also, revenue measures to in cruise passenger opposed performance and

once to drive another diems For significantly diems be to expect net again per XXXX, XXXX, onboard up to helping revenue per up. we versus the

However, the offerings, as accounting past, bundled as reevaluate package we the the allocations. indicated change in I we revenue

impacting less As in will other left more of XXXX. XXXX revenue in revenue and the a diem result, both comparisons to per tickets onboard XXXX, to and the allocated and onboard, be

way to net our as metrics the to another Just by reason total list of our is best add to diems. such revenue revenue why cruise performance per to reasons judge the reference

the up versus without of expected in Now X% fuel structure, costs current and turning be industry-leading ALBD are our adjusted per currency. the X.X% dollars to to X.X% for to XXXX full in base X% XXXX costs. cost cruise Off constant to year

over lower XXXX accelerate demand. further up but XXXX per an to are increase ranges in first ALBD advertising cost versus XX% X does point dry the XXXX, driven quarter quarter dock quarter first by the first include For less

X are drivers cost There increase. the main of

First, mid-teen globally. our for cost an our across forecast level is of inflation average categories all

in drive to beyond Second, to add is third, further X investments expected points to X other point. likely advertising optimization small and add cost per to to demand pricing to percentage and And are our decision ALBD. deployment and XXXX invest in X percentage

Significantly drive sourcing resourcefulness ALBD our teams mitigating points without our creativity, the A producing ship adjusted fuel cost is productivity X that points. costs increases, per cruise to approximately savings in worth is these that improvement operating percentage program of by accomplishment. fleet work great the and X.X hard per and X-percentage-point ALBD and expected global optimization of

to would amortization, this you contributed the all release morning who team Information. this depreciation titled can say to members we Forecast section earlier the in in and issued details The thank fuel expense found I like expense update to be press the business of effort. and Selected interest

So I through the numbers. will all walk now

you those for MGO of we modeling that expect of represent for to XX% fuel note expense, consumption However, please our XXXX. about fuel

However, that during the the early of percentage be slightly year. may part higher

consumption, everyone to ALBD XXXX, fuel compared of to both for contributed year subject as and XXXX. the carbon on ALBD fuel XX% who like per to would the full emissions on consumption per I our the team are we expected both global While in recognize reduction

across can drive morning's underlying investing aggressively business. even update fully Air upgrades along our Lubrication and that and everyone We more are realizing the of through to with of on and itinerary portfolio destination the strength in benefits understand of our carbon business the efforts our while so port projects our optimization this fleet down focused out working brands, optimization technology like footprint, in fuel mentioned costs rolled Systems being consumption

price, an a full from mix full $XXX including I a currency to of did first fuel versus that prices approximately expect currency for that FX impact year the XXXX $XX rates, and impact million times of year and is we impact fuel point current XXXX quarter did out fuel and for that million. over at want negative multiple for

close Putting the we for factors quarter $XXX we as in to XXXX gap. sequential of first $XXX XXXX all XXXX million quarter million of the and compared these continue together, to expect adjusted EBITDA to improvement each

early better of of However, occupancy guidance ahead year. business next for net guidance season and wave the year March. given diems, a update that position significance quarter be plan in much We during will our on providing EBITDA provide us, the we first full per to in

let's operator, you. Thank now questions. the up And call open for

Operator

[Operator Instructions] Our Steve of first with Stifel. line question is the Wieczynski from

Steven Wieczynski

David. and Josh

the off first fall and into question keeping the and throughout that higher of lower? I quarter for were Just cadence is to any the year? pretty But why wondering around you you any for it throughout the other year? next high -- I And or is marketing be sounds might to for it And will would that then makes guys 'XX And marketing keeping first marketing we there be guess sense. cost fourth hope XXXX. high that throughout full So what if are year. thinking way are accelerated guess maybe entire the the might understand would look -- maybe question that quarters marketing levels there start 'XX all like guess then I like the were or spend quarter spend costs so be spend some. XXXX of be

Josh Weinstein

Yes. Steve.

in XXXX, the the been website, already just across to a with the moved respect we put strong with we the first really very and advertising in about on momentum has doing generate And do of really nicely the XXXX. the the season that all think and -- that's timers, Monday good excited so wave Cyber materials been amount a that Friday, We've meaningful to have up in across incredibly if reach started that and you got. we've we've really that are generate So whole to ratcheting position book of Black consideration with way. our advertising November, month awareness, saw

the board. getting partners. the brands. just our helps do the it's us, across to is we out. think helps got helps It a way mean better a I tremendous great And brands, good to it. And -- we've we've this got And it bookings voice need trade do it but job I not

you given So the XXXX, as far as across specifically we'll how the for we've quarter. guidance first it look at

now, performance the the media the board where where as really and down can and both having of we don't and in marketing, is advertising about it's activities we're think thing impact. But we to digital it's hit our dial starting side across stride. an up, right great much it's that mainstream the working dial doing The then

So the pleased results. with we're pretty

David Bernstein

additional structure I'd and that to full cost I've Steve, judge the our I other gave year, that remember, to is Yes, color add the you to there the as flexible. with we guidance along, the that go are appropriate make we remain is of seasonality most agile increase. historically, X-point best said X we only the is, and decisions way and The problem

But is with the in say in the to that terms a will in always has highest quarterly quarter said, I first that the the of quarter advertising be the But a basis likely been lowest low quarter. on quarter advertising. the third and traditionally third

that's the guidance give this best at probably can we you So point.

Steven Wieczynski

able guess, down that, a normalized the if to of pull of through 'XX. you still get you expect follow road, as on that guys a demand little 'XX we to that up kind would to those bit factors solid we as And I of further mean be the load get to majority think spend? I marketing on kind Would back back looks you pretty and bit good

Josh Weinstein

certainly it's back our just to really to are unit we're trying mean get pricing levels We're that to historical. not occupancy control. well. the as drive I Yes. within trying Ultimately,

of that. a And big component is so advertising

having we're hope conversation -- So Steve. we're I in months, X that

Steven Wieczynski

they were are And just be Great. housekeeping quick then going if possible. Costa, one sold? X they David, leaving Or are scrapped? Okay. ships to just the that

David Bernstein

No.

one have contract them, and actually in contract for a announced the we total moment working X on ships of we're we X at -- a sale. and for So

Operator

the line Farley next UBS. of Robin is Our question from with

Robin Farley

key clarify you -- if There wonder just that were us. kind a couple for I really of could things I of

price I -- higher, say for you First, FCC. comment think it's on adjusted 'XX the that

So only including constant or in would in including 'XX X% point, higher which than price on at books discount, 'XX, currency, probably is the your that? that impact the this of be X%

to is and EBITDA just all seems guess few gave yield I'm the -- to a XX% QX, by of be little haven't the I it math a a there's would for plus now. it have you call. I detail a of line, before lot QX including And surprised for occupancy to get because been in yield the guidance release no for the that since able out then you I'm only do like But mind book minutes sort and

might talking our I So with if you're wonder of to about sort the what range the help help get math? us just check to that just of EBITDA a us you could

And EBITDA help then get year? year. the you be It's that. QX, could could -- the million give $XXX help if comment just that lastly, comfortable us million if quite can EBITDA that full other billion -- full on the could number And guidance would after year with floor sequentially EBITDA. $XXX in so like low $X you floor. wonder up sort It of up I wonder to the full quarter up then in you higher is still a for a basis, we Like to a -- for than us and words, sort of I like each for a just on sequentially quarter, you're each

Josh Weinstein

of questions. hell lot a was that Robin, of Yes.

start -- backwards last the I the remember first one. me let can So because

basis, on respect performance EBITDA, so to to basis, that that currency, things? a QX XXXX. to get XXXX our back convey are we'd close looking said how a with we the levels we continue and we gap year, on So sequentially throughout basis, in the noise of and at And what is fuel XX% -- to on to when and unit what's of tried out trajectory you performing strip

I be do to but able we've a pushing am going do certainly time to that in get to got lot hopeful exceed to of we're XXXX QX, work levels we by the to that.

about guidance, we're want respect not sure do do With that? yield make -- to just to question so your you to

David Bernstein

about maybe said constant X% -- guess did you in net per the in up talk I specifically be to in dollars. expect this. notes diems And translate we to part that to I X.X% to where Robin, X% that missed does currency. my X.X% I constant

slightly or course, higher gave per gave of diems, the we Now the in release. we press also XX% of but occupancy

So you with revenue the calculate can that. associated

as right. be We the would pricing far trends X FCCs still would higher even booking We're as the the up if add point -- And that at the less indicate book still the concerned, FCCs. be did you're year. prices. And than are the we didn't back for

that think of follow-up? Any questions. covers all I your

Robin Farley

but will does. have back I more, in queue. I get the That

Operator

the Wightman is question -- of Research. next Fred Our Wolfe line me, from excuse with

Frederick Wightman

of I guys sort sort sort on build what improvement, just of and percent. to we of it expecting XQ, of points in we at are XQ, just you ramp. wanted If up the look XX XQ from X-ish to follow occupancy if look

So walk what's that that can how the relative the expectation context you you XXXX be about of to back that of summer? should us over sort improvement through the to are occupancy to sort full we guys think going maybe just driving sequential the And levels? lower in of

Josh Weinstein

Sure, Sure. Fred.

So one another XX-nighters. the thing QX year. ships to of longer very have World X you are it rest profile, host a about on grand of in on we what XX-nighters, deployment our ships Cruises, think exotic X doing voyages, voyages is XX-plus different think then that typically QX night from about when got the actually and We've ships

itineraries, longer with time so that things. lead of list of types And those profile, type some are bucket

and with And so get stopped QX, we progressing expect. would for that we where have we get QX And the that wind be is those of profile. thought given to itinerary back closing gap into the down it dynamic to or we exactly it -- cadence as occupancy respect the

Frederick Wightman

Or those comment the the release into just sort about XXXX some above booking sense. bookings continuing December. was volumes off XXXX December in about November? a makes Also talking levels? still in That November after promos levels. there the just booking exceeding momentum, of Understood. did tail And of Are on a momentum comment

David Bernstein

and very above strong, No. continued well XXXX They've level. they've continued the

So with that and very coming we're overall pleased position the to the in date. bookings are

Operator

Our next from Katz question with of line Jefferies. David is the

David Katz

Two quick ones.

getting in think past, back to the I you've XX% referenced ROIC.

about has to takes what talk the just to could happen the there you puts path If that occur? on and for and

that? around with confirm metrics it are And or measurements the advertising, of you that's do me. have that any demonstrate or And that of then the second, productivity sort some that respect you for shareable -- to

Josh Weinstein

our in respect track know Thanks, give correlation With brands track and has to impact without to track consideration, the David. are they wanting via to our respect tied which lead tracking booking. what performance away we that activities deals positions, exactly we competitive the conversions They and generations, awareness actually brands a the to -- -- with the from websites, track is on conversion taking. marketplace, they advertising, are

is effective do the discuss where we them might be them decisions we effective. we and and and not it board, about that's make the where with follow we and So how them with across it brands, them have

And not amongst about working what's X what's so from themselves, us sharing having can learn brands great other. working, we and each what's

I With ROIC. thing are to going industry-leading our focused. drive is where really, a mean That to the be our to the revenue. going that's mentioned brands revenue revenue David double-digit it's respect cost course. base. and But that's ROIC, to continue be back us to it's focus, the will of

David Bernstein

to the like we've months, new a we in brands. a One have X I'd add last have position increased we since And been the on a XXXX. David, for our at thing we to one lot is the advertising And seen more and thing, look book tracking take shift front. advertising,

improvement. X-percentage-point an it's fact, In

So at of position are guests and that new we're guests in half the the brand. other what it's this repeat roughly for Royal XXXX point book seeing is the to half time, are

have people an sales. these Unfortunately, old

is we'll I sail. a the lot fact booking cruise getting to and they So find in they're it the of seeing brand -- know don't we're demand shortly whether volumes. great or as out that new their we're switchers, But

Josh Weinstein

an board. to ability first timers of growing a trade partners drive of our they health on that's also the are of indication huge our because piece And

shout to them a well. out as So

Operator

question Morningstar. the is with Jaime from line next of Our Katz

Jaime Katz

In the on focus maybe reprioritizing remarks, shifting sizable prepared on away on focus Is there what there was guys comment you a list. or are update us from noteworthy to there? anything shifting anything project

David Bernstein

look change that at have -- fleet, fact lot had XX were the From a with that CapEx, left the in the a ships I CapEx saw when reason also to most prioritizing the CapEx that do a So comes smaller, you there's important is ships. to things therefore, are a big we if efficient overall think had you they And But their it why of the as XXXX. And timing. the of down less lot that's of perspective, stuff the the and it, we need number come high doing time issue necessarily first. previously. don't it's in timing some as

The probably grow. the only clearly, CapEx continue reducing to in of we amount really that where ways our significantly as offices noticeable -- with the we're as thing that far to working need our we'll expand of as today's space, office environment, new

Josh Weinstein

give Yes. prioritize. We wouldn't we of an and we -- where can example I would where you

critical remarks So the continue the b, of to We the on in returns doing prepared our fuel press release success about making drives ahead. in are long-term great and our is a, steam some front, That's we as that to see, consumption carbon which footprint part well. -- impact on and the full that. going we're sustainability our talk that; we and

on to speed that a things to of error comes There introduce less we out new can a trial those which experiences. could and bit pay a when creating we differently. take venues can particular making risk at on be the it board little decision We brand, new of want about

could we be, a all just the more appropriate of to and where risk managing think to cash focused it's the want what So take we we want question on where be return balance.

Jaime Katz

have you And across been on if a operator decent spend, North maybe Okay. be a the pretty spend. elaborated the guys of on more cruise marketing not landscape. ROI discussion know sure And American then seems I to there's there I'm consumers to lot push of sourcing marketing directionally

the wondering maybe as as prune you I'm so has spend productive or to be before is temporarily it expect if depressed been marketing that historically if you can back? that And

Josh Weinstein

which and champion it our brands can good to adjusting advertising. we and with we them appropriate. we'll we more, about I market feel real is what additional monitoring strengthen spending Well, we our are results happy and ability the But as repeat said, the with to very keep are

Operator

is question next Our from the Barclays. line of with Brandt Montour

Brandt Montour

the I Josh, a the more to on opportunity into as bit marketing want So well. front little dig

that channel promo to to upside activity. the isolate you're give to to magnitude 'XX were off the you diems much from sort of the -- are just mix and of those mix there us versus level try rest how a sort isolate that taking to for remove channel that to of way additional that the of additional Is that again, opaque channel that? shift of, If trying now opaque opportunity doing when able you and per

Josh Weinstein

a to to but answer, you love got give honest. I'd be I straight

sure make time. could I will way not that a I'm I that short a in So feel sense in of comfortable amount

David Bernstein

guidance want our prepared know of we is per I season Brandt, year. So which rest out, will I one EBITDA year. the to my another net for that we way like what yield that's The I diems of occupancy balance and for do in the said us of thing asking important, guidance remarks is and point wave for and will and -- is the the give the

when question. However, we guidance the per before, did reiterated quarter, asked the first diem the for I Robin net give as

worth you mentioned to X that want brand that brand point and points, one I do And mix the so about out I that was think as And thing quarter by mix. is first benefited But year what into through of you we the will the through as the with consideration describing. positives just as please as diem. that be the forecast think per there balance year, take you're that, also

Josh Weinstein

to our backwards helping I look improve great that's easy turn diems. -- is back, right, mean, pretty And thing we'll I on our trajectory you and looking and we off. guess it's turn I QX QX, to are at pulling could per and And the say from

further wave so we into gives the XXXX. able momentum It is being us it And we lot into -- gives this far, get about as of excitement a back get as season, good. us to pull

Brandt Montour

really was helpful. That Okay.

I related The second to is have China. question

like that go didn't we it are guys now they X going ships being removed. were You looks where the to know --

medium-term in are And means China. closely back now? still thinking you Or so no to that even or eventually return that markets? to potentially for to pressures you And market you? you other market watching a alleviate near maybe go opportunity China medium that longer-term supply Do are to that there's guys plans to how about consider

Josh Weinstein

mobile relying certainly thing about we're great our when mean, look not cruising, our on generation. not moved look, the demand really and our opens it. and assets, and We're and they're to again opens not revenue up, up at on Yes. them that, we'll but opens up to just I we've domestic If China counting optimize it. but

our we the in or the are penetration going X and we We like push on position, cruise brand have to there. today, -- and that we're increasing #X all hard major markets

Operator

from with Citi. Our of next is Hardiman James question the line

James Hardiman

those to it XQ like at its difference the recover look turnaround for per you way from like So channels. by like guys in focus criticism. booking guys. a in know I in and prepared there was the been obviously remarks of criticism be you the But disagree that anytime big at of it's a if seems also, seems comment. to through that opaque seems difficult I an with one discounting That such comment sort you about soon. have your It competitors important between diems, that XQ, going least is a is that discounting which

going pay your So that confidence of and maybe off? level speak it's to that to strategy ultimately

Josh Weinstein

Sure.

anybody for speak speak So for else. ourselves. I'll I won't

global company. a are We

We have as brands all just to a With competitors. revenue, channels, our how They to onboard different back we've are levers been much optimizing which and different mechanisms, our problem. of profile respect using a different which, than price, and opaque spending. is it over referenced, including time are able pull occupancy without you is

doesn't not caught operating going the that's or on not focus and that bottom not to revenue up line, just EBITDA revenue in focus, hit driving cost our We hit income, that where and and our get the focused. to get the revenue driving our we're but is that's

James Hardiman

if -- any been which RSV this and at my there's it. the brand got in now, this it for has question the their a school kids has point. -- the media helpful. something, in of class diseases COVID, news second whole obviously, Flu, And to to hand tripledemic anybody then right? idea you half to lot That's ability Got a right

diseases point? and at about largely metrics booking that, business to book over of the are and curious at their the anything seeing we would any impact you're viruses guess impact how is I it that on that's in cruise? statistics going consumer suggest to an your you think Or that this if having to I'm But as look willingness

Josh Weinstein

years mean, we through look, happy see people on Yes. of the I -- lives. COVID, X pretty I having to get board, what We with people are are across think their much come -- is

that those that some belittle to right family some people are trends what them to things trying you not of about But is dealing normal how about with pretty and see are could said types we back folks thinking going illnesses. there I'm are what now. that on are obviously, because their Now be tough

be knew back away always And come, come the point in some stride -- with staying and that's will going experience with masking a go what's the in of little we're fury our we And this a it on, seem bit of all and world, it we taking to would right? other a problem. When from things didn't not on ships. that would and each a and doesn't away

Operator

Securities. Our Truist from of Scholes the is Patrick line next with question

Charles Scholes

for you Certainly, on said theory. could Previously read slightly I technically, above. same thing, year? next semantic should they higher, How mean more your but mean, into little that, pricing comments it's a the now we please. regarding color

Josh Weinstein

our X, which answer, but significant my it's think we close hard trying position. a language gave is gap. book really Well, in that really you I to are occupancy not change the change, Half

going are plan prices. We we wave strong opaque it the lean onboard using keep as anticipate that a channels harder where makes great we back very we And through and supplement think our to we we're get and regardless, ticket season. where to pulling sense spending to

full us, it's So steam ahead. for intended, pun

Charles Scholes

an trends have through here in a on quarter XXXX Okay. or versus booking say quickly. been questions you the the in X What recent comparable quarter there? X update more give us book agency? direct what most And you the Can just travel seeing are then versus

Josh Weinstein

the been is And we've up and we've and do just lately. trade some to them that. along all doing other in itself back relatively held great What trying questions, the has throughout trade build had been the great we've pandemic saying as the referenced the support been the direct well to of business up that is, to thing

about they've helps we They're volumes. started too, as as excited are really advertising push to them the and it because our on

they're be And progressing. how we couldn't with happier so

Charles Scholes

and Okay. much lastly, it been just the what for year? if you XX%. in of ALBD that? like is How caught the previous sounds else I next by correctly, talked fuel older fleet think driven had that I legacy XX% reduction, being some And may about then reduction number the be it driving

David Bernstein

Yes.

new efficient the also and other the the combination release. press the itinerary of with my of ships all investment then smaller, as System, as of mentioned in And technology, optimization in well the fuel in which the reduction like I has the X% the delivered, things was notes with Lubrication removal less So make Air XX%. do that ships of were the up to X% the

Josh Weinstein

think I Chris one for more we question. time got

Operator

will question Cleveland Our Research Company. Ciepiel be Vince line of with from the final

Vince Ciepiel

on for when business. consumption real picture position for Obviously, higher the historical Just going of of dealing perspective all Kind cost kind 'XX, like long you -- Ahead to your historical here, foresee had your know, for And run? you're 'XX. to some operating the are occupancy, you side. with outlook levels? I the 'XX, you prices, with it then was I fuel kind get fuel over exiting close strong. view price on together big potentially quickly that there's put also levels? don't pretty And into be do historical path you're of of back efficiencies when for targeting the what even to coupled layer wanted real but margins sounds your you to -- decent as margins maybe getting a return pretty Like in

Josh Weinstein

guidance. giving not we're because Well,

I what levels to currency basis. exceeds when best prices, and can how that's rid fuel year, of about the that really noise think XXXX we're and a I where we focused. get unit end the do is the time EBITDA you of thinking operationally, by get on from the trying is per And we're the tell we're it you to the

in longer March be in more of we're the as full far going that more As our wholly can conversation guidance. a we about when term, to year talking have maybe

David Bernstein

fair there's we're that to a the increase well it's advertising relating But say to time bode capital, expect of or the X. the return we which all year of we potential for next move considerably as should invested revenues, through the which to doing on lot over

Josh Weinstein

Thank you.

us call, I'd website for and materials joining happy and encourage you some our thank schedules. and go presentation on everybody our to much you the holidays, to supplemental for to So very

much. very Thank you all

Carnival Corporation & plc (CUK) 21 Dec 222022 Q4 Earnings call transcript