Carnival Corporation Reports First-Quarter Earnings

Carnival Corporation & plc reported net income of $283 million, or $0.35 diluted EPS, on revenues of $2.69 billion for its first quarter ended February 28. Net income for the first quarter of 2006 was $251 million, or $0.31 diluted EPS, on revenues of $2.46 billion.

First-quarter revenues increased by 9.1 percent driven by a 7.4 percent increase in cruise capacity and a 1.7 percent increase in gross cruise revenue yields (revenue per available lower berth day). Net revenue yields
for the first quarter of 2007 increased 0.3 percent compared to the prior year.

Adjusting for the effect of movement in currency exchange rates, net revenue yields as measured on a local currency basis decreased 2.1 percent compared to the same period last year. Net cruise costs per available lower berth day (ALBD) for the first quarter of 2007 increased 1.3 percent compared to costs for the same period last year.

On a constant dollar basis, net cruise costs per ALBD decreased 1.3 percent from the same period last year. Gross cruise costs per ALBD increased 2.9 percent compared to the prior year.

On a cumulative basis, occupancy on a capacity adjusted basis for advance bookings taken for the last nine months of 2007 is slightly ahead of last year. Pricing on a cumulative basis is down slightly compared to last year (down 2 percent in constant dollars).

Based on current internal forecasts, the company continues to expect net revenue yields for full year 2007 to be flat to up slightly (down 1 to 2 percent on a constant dollar basis), compared to last year. Net cruise costs per ALBD for 2007 are expected to be flat to up slightly (down 1 to 2 percent on a constant dollar basis), compared to 2006.