Carnival profits nearly double in earnings call

[tallnthensome]

I got to say this is the oddest thing I'm ever reading.

 

More money out of the customers pocket, and more money into a company's coffers....

 

And the customers are applauding.

Because these slappy Carnival loyalists are crazy blind. Unless you own stock why would you applaud? They enjoy paying more than they used to for less apparently. Profits with cuts, higher fares, and being nickle and dimed at our expense even with low fuel prices doesn't warrant an applause from me and probably MOST people. Do these same people applaud airline profits while being charged high fares and being packed in like sardines? I wouldn't doubt it!

[rkacruiser]

This is the corporation, not the cruise line. Who knows how CCL stacks up against their more upscale siblings?

 

A frustration of being a shareholder of Carnival Corporation is the impossibility of obtaining detailed financial information on each of the brands. The stated goal of the Corporation is to reach double digit returns for the entire Corporation within 2-3 years. I recall reading in the current Annual Report that Carnival Cruise Lines has met that goal already.

 

I truly appreciate the efforts, experience, and knowledge that the Arisons and other Senior Executives put into this Company. But, I am of the opinion that Mr. Arison's decision to resign as CEO and turn the Corporation over to a new group of executives has benefited Carnival Corporation as well as us shareholders. I am also pleased that he chose to remain as Chairman of the Board.

 

Carnival Corporation is a well run Company.

Edited March 31, 2016 by rkacruiser

[Mutumbojimbo]

What a fun thread! :rolleyes: I think the reaction to this news can be (and is being) taken several ways:

 

1. Obviously Carnival stockholders are happy that the value of their stock has increased.

 

2. Some Carnival fans are happy that Carnival Corp. is doing well.

 

3. Some non-stock holders are upset because prices are higher this year.

 

I think that all of these are reasonable reactions, I would probably fall in to the 3rd category myself. Maybe the bookings for 2017 and beyond will slowdown, but as long as Carnival is filling their ships at these prices, I don't see them dropping fares or offering the incentives that you see from other lines.

[cruizinisthebest]

I don't hold any Carnival stock but am happy for those that do and the company at large. I have trouble understanding why people can't be happy for others even if it doesn't have a personal tangible effect on them. I'm just different I suppose.

 

As far as the prices go, yes they have gone up, but so have prices on many, many things including other cruiselines. My net increase between this year and last year is about $60. So as long as I am willing to pay, I see no point in complaining. That's why I don't. This year we're going on a ship with more features added then when we originally booked it, so there really isn't a thing to scoff about IMO.

[bassmaster150]

Sounds like, instead of reducing fares due to the plummeting fuel costs, Carnival Corp. just pocketed the savings.

 

And since they are a publicly traded company with responsibilities to their shareholders, how is that wrong?

[bassmaster150]

I got to say this is the oddest thing I'm ever reading.

 

More money out of the customers pocket, and more money into a company's coffers....

 

And the customers are applauding.

 

Businesses are in business to make a profit...that is why they exist....so in your logic, what are they supposed to be doing?

[bassmaster150]

Because these slappy Carnival loyalists are crazy blind. Unless you own stock why would you applaud? They enjoy paying more than they used to for less apparently. Profits with cuts, higher fares, and being nickle and dimed at our expense even with low fuel prices doesn't warrant an applause from me and probably MOST people. Do these same people applaud airline profits while being charged high fares and being packed in like sardines? I wouldn't doubt it!

 

Ummmmmm.....then choose another type of vacation...Carnival is a business plain and simple, and their job is to return value to their shareholders and investors, and that is done via....wait a minute.....here it comes...PROFIT. Simple business. If you don't like being "nickel and dimed" then you are free to spend your money elsewhere...it is your choice...you can vote with your wallet.....oh, and let's not forget, that everyone on these boards is always complaining that Carnival's ships are old and they need new ones...which is cool....but remember, they have to spend $1 billion for every new ship. Someone has to pay for that, don't you think??

[tallnthensome]

Ummmmmm.....then choose another type of vacation...Carnival is a business plain and simple, and their job is to return value to their shareholders and investors, and that is done via....wait a minute.....here it comes...PROFIT. Simple business. If you don't like being "nickel and dimed" then you are free to spend your money elsewhere...it is your choice...you can vote with your wallet.....oh, and let's not forget, that everyone on these boards is always complaining that Carnival's ships are old and they need new ones...which is cool....but remember, they have to spend $1 billion for every new ship. Someone has to pay for that, don't you think??

I just gotta laugh! Don't lecture us about businesses and profits. We get it so save your breath. What we laugh at is people applauding handing out more money for less. Why is THAT so hard for you to see and understand? Do you enjoy reading about oil profits doubling when gas prices go though the roof? Do you applaud profits when you're insurance rates go up? Do you applaud when your cable bill goes up and Comcasts profits double? Look, I enjoy my cars but I would rather buy when the car company's profits are down and prices come down with incentives to me. I don't applaud when car prices skyrocket with no incentives. Everything has gone up in price. It doesn't mean we have to like it and applaud. Airline prices are still high but you're suggestion would be to walk to Miami instead if you don't like it more or less. Most still want to live and that includes cruises. Anyone besides shareholders and Carnival that think it's wonderful that Carnival's profits doubling at it's guests expense while getting less has a screw loose. Maybe you enjoy paying more for a box of cereal half the size of what is was three years ago, but 99.9% don't. Like others said above, what's good for Carnivals bottom line us usually bad for the guests.

[Hog Rider]

Sounds like, instead of reducing fares due to the plummeting fuel costs, Carnival Corp. just pocketed the savings.

 

Profit made possible by the other lines acarnival owns. CCL is a loss leader.

[Hog Rider]

I don't have any stock. But what is the dividend on a share?

 

Last quarter was .30 a share up from .25.

[Podna's]

Ummmmmm.....then choose another type of vacation...Carnival is a business plain and simple, and their job is to return value to their shareholders and investors, and that is done via....wait a minute.....here it comes...PROFIT. Simple business. If you don't like being "nickel and dimed" then you are free to spend your money elsewhere...it is your choice...you can vote with your wallet.....oh, and let's not forget, that everyone on these boards is always complaining that Carnival's ships are old and they need new ones...which is cool....but remember, they have to spend $1 billion for every new ship. Someone has to pay for that, don't you think??

 

 

Bass most of hear you loud and clear and know a successful business when we see one. On the other hand you'd probably have a better chance explaining this to a rock than the posters you replied to.

[tallnthensome]

Bass most of hear you loud and clear and know a successful business when we see one. On the other hand you'd probably have a better chance explaining this to a rock than the posters you replied to.

Sure, people who don't want to pay more for less don't get that businesses want profits ..... If you believe that then you are ignorant. Perhaps when gas goes back up to $5 a gallon and profits double you can act like the court jester and jump around the gas station with your arms raised yelling "Hallelujah" "So wonderful that the oil companies are doing so well" See what kind of looks you get ...... :rolleyes:

[Podna's]

Sure, people who don't want to pay more for less don't get that businesses want profits ..... If you believe that then you are ignorant. Perhaps when gas goes back up to $5 a gallon and profits double you can act like the court jester and jump around the gas station with your arms raised yelling "Hallelujah" "So wonderful that the oil companies are doing so well" See what kind of looks you get ...... :rolleyes:

 

 

Well believe it not I work for the 3rd largest refinery in the US, so as much as my wallet benefits from the low gas prices, believe me it's doing a lot more harm than good. But this is not an oil and gas forum so maybe you can do a little research and you'll see what I mean.

As for cruising, I'll pay a little more than I used to too sail with a very successful cruise line such as Carnival. No biggie.

[cruizinisthebest]

Sure, people who don't want to pay more for less don't get that businesses want profits ..... If you believe that then you are ignorant. Perhaps when gas goes back up to $5 a gallon and profits double you can act like the court jester and jump around the gas station with your arms raised yelling "Hallelujah" "So wonderful that the oil companies are doing so well" See what kind of looks you get ...... :rolleyes:

 

Gas is inelastic. You need it and will buy it no matter the cost. Cruising is perfectly ELASTIC - meaning you are 500% free to opt of cruising Carnival or any other line at all. So your comparison to gasoline makes no sense. If any of us had a choice whether or not to purchase gas when it was sky high, nobody would buy it for more. Nor would oil companies have the ability to raise prices with total comfort that it will sell at ANY level.

 

Also, your argument supposes that everyone is getting less from Carnival. Simply not true. As I indicated in my previous post, the price increase from this year's cruise was a net $60 for us. For that extra $60 we are sailing on a bigger ship with features that weren't present when we booked it. We still were able to book two rooms, so the type of comfort we like to enjoy in our cabins during down time hasn't been sacrificed one bit. We also will have the benefit of traveling to a new country - something no other competitor for the same time frame could match for similar pricing. Believe me I checked as I am welcoming of a chance to cruise on another line that will take me to Caribbean ports that I haven't been to before WHEN I want to go.

 

The $60 increase is minimal if nothing for what I'm receiving back. But if I had a problem with it, then I wouldn't do it as it is completely within my own will where I spend my vacation dollars. Oil in its various forms of refinement is far less optional.

 

I don't know why you and a few other folks around here feel the need to call people names and try and suggest their intelligence is limited just because they don't agree with you. I may not give a rip about my bank (for example) profiting from increased revenue but cruising is different. For most here it's a hobby and a passion that people enjoy. There's nothing ignorant about being happy when a company you've sailed with - with whom many memories have been made with family and friends does well. What is ignorant is trying to turn every positive post into a negative just for sport. Or is it hobby and a passion of yours? :rolleyes:

[richstowe]

Good for shareholders and management who have stock options and bonuses.:)

 

But as a potential customer, not so good.:( I always like my service/goods providers to be struggling just a bit. That way I can get better deals!;)

I see your point and have enjoyed great deals when there were momentary issues that caused demand and therefore prices to go down . Or when there was oversupply in a given area (in my case the Mediterranean ) that made for great deals . Overall I want a reasonably profitable cruise industry but maybe not for my particular cruises .:D Edited April 1, 2016 by richstowe

[LaCal]

I've been a shareholder for years so am very Happy and even doubly happy because the casino keeps giving me comped ocean view cabins each cruise and $1,000 cash

 

😜😜🍹🍹🍀🍀💰💰💰🍀🍀

[bassmaster150]

I just gotta laugh! Don't lecture us about businesses and profits. We get it so save your breath. What we laugh at is people applauding handing out more money for less. Why is THAT so hard for you to see and understand? Do you enjoy reading about oil profits doubling when gas prices go though the roof? Do you applaud profits when you're insurance rates go up? Do you applaud when your cable bill goes up and Comcasts profits double? Look, I enjoy my cars but I would rather buy when the car company's profits are down and prices come down with incentives to me. I don't applaud when car prices skyrocket with no incentives. Everything has gone up in price. It doesn't mean we have to like it and applaud. Airline prices are still high but you're suggestion would be to walk to Miami instead if you don't like it more or less. Most still want to live and that includes cruises. Anyone besides shareholders and Carnival that think it's wonderful that Carnival's profits doubling at it's guests expense while getting less has a screw loose. Maybe you enjoy paying more for a box of cereal half the size of what is was three years ago, but 99.9% don't. Like others said above, what's good for Carnivals bottom line us usually bad for the guests.

 

So then you are ok with no new ships ever again? I mean, it costs Carnival Corp almost $1 billion for each new ship.....so if they cannot make any profit, then how to they keep the company afloat? Who pays for all of those nice shiny new ships that Carnival Corp (all of their brands) are building if they cannot make any profit like you are suggesting. ANd finally I must ask, what do you consider a fair profit for them to make? What is a "fair" price for all of us to pay for a cruise?

[bassmaster150]

Bass most of hear you loud and clear and know a successful business when we see one. On the other hand you'd probably have a better chance explaining this to a rock than the posters you replied to.

 

Good point..... :):)

[bassmaster150]

Sure, people who don't want to pay more for less don't get that businesses want profits ..... If you believe that then you are ignorant. Perhaps when gas goes back up to $5 a gallon and profits double you can act like the court jester and jump around the gas station with your arms raised yelling "Hallelujah" "So wonderful that the oil companies are doing so well" See what kind of looks you get ...... :rolleyes:

 

So the next time you are sailing in the ocean and you pass by some of those deep water oil rigs that are drilling in 15,000 - 20,000 feet of water...just remember that those oil companies have invested billions of dollars into that infrastructure to be able to get that oil.....which is not only in the gasoline you use, but in all of the plastic you have in your house (TV's, Computers, etc etc) and other things. Also, the price of oil is a commodity set on the open market...so if you want to be upset at someone, be upset at OPEC as they are the ones manipulating the market by controlling the supply in the world. We are not an OPEC nation and if we had a president who understood these economics, then we would use the resources that we have here....then again, we can just use up everyone elses resources, and then we will make all of the money back. Maybe its time to buy some oil stocks. :eek::eek:

[bassmaster150]

Oh and one last point.....I do always look for deals, and if you search for them, trust me when I say you will find them. As you can see in my signature, my wife and I love to cruise....and we are booked on the Vista on October 1 from Barcelona to Athens...a 10 night cruise.....in the Mediterranean.....with a balcony on Lido Deck.....on a brand new ship....for a grand total of....$1238 per person. That is cheaper than quite a few Caribbean cruises. That doesn't seem like an obscene profit / price to pay for a 10 night cruise on a new ship in the Mediterranean.....you just have to be persistent and look.

[Sweet Dutch Girl]

I often wonder how many people would be "altruistic" in their business endeavors if they were held accountable for the profit/success of their own company. The economy is doing well, unemployment is way down, people have money to go on vacations....all things based on the fact that our capitalistic economy is working. I can charge more for my professional services because people can and are willing to pay...should I forego my net worth so that the people who use my product can get "great deals" thereby leaving me to have trouble paying my bills. I don't think so.

 

Sure the rich get richer in good times, but people like me also benefit when times are good. It's my choice to vacation, to spend my new found dollars. You aren't about to see me taking financial cutbacks so that others can sail through life on a cheap ticket. I just have never understood the idea that "someone" else has to take a loss so that I can "save" money. Reeks of economic systems that have failed over and over again.

 

Good on Carnival and any entity that makes a profit. It means that their business plan is sound and that, realistically, the people purchasing their product are OK with what they offer. Sure I'd like to eat at the Ritz for the price of a pizza but it just isn't going to happen...I'm realistic enough to understand that. Seems some people aren't.

[riclop]

That is why you are seeing more reduce deposits which people like.

[skidawg79]

Sounds like, instead of reducing fares due to the plummeting fuel costs, Carnival Corp. just pocketed the savings.

 

It's called running a business. Law of supply and demand, good for them for selling out their ships and making some money! If people will pay the money, why lower prices? It's simple economics.

[Clarea]

Thanks for sharing.

[Twintowngirl]

This stockholder is very happy. :D

 

So is this one. Love it!