Carnival Corporation & plc (CUK) 26 Jun 232023 Q2 Earnings call transcript

Good morning. This is Josh Weinstein. Welcome to our second quarter 2023 earnings 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.

Before I begin, please note that some of our remarks on this call will be forward-looking. is to milestones statement last we've and past you release. There today's X refer this many are hit quarter I'll the in cautionary press years, Therefore, exception. no over the

quarter reached second quarter XXXX was revenue, and midway as above income, there cash that, a to shore. Net revenue bottom in quarter. members point in to to In And a the EBITDA through constant credit for bookings yield on line, currency were fact, inflection turned flow surpassing year. phenomenal much hit and the strong team all growth positive. Adding meaningful customer achievements, net dedicated gap maintaining operating and ticket close we level. the those from celebrate second XXX,XXX prices remarkably, in in positive operations We amazing just strong cruise for continuing early, [indiscernible], the our the with XXXX of on the gained compared a cash for to all-time strength still we are highs and free and started efforts second experiencing demand ship And deposits. is XXXX adjusted onboard still which revenue drove of occupancy. and the to record while strength adjusted going in yields The delivered outperformance we top

XXXX benefit pricing, while constant is in were maintaining X.X by constant continued over for our for guidance bottom while X.X% be in in well cost will significantly we to increase another we diems in higher supporting the strength higher thanks up on. All per as levels, our over net constant guidance, second are achieve year, told, XXXX XXXX from second ALBD our for occupancy also have fuel were progressed guidance bringing revenue X.X the quarter per in net over a XXXX's net which than better occupancy. Based of than points XX% in we are second holding line David was XXXX elaborate first currency the the half meeting currency to in price the quarter. in to as to on our our the of growth the currency. will yields in of fact, revenue the expectations, This expectation This the half capturing diems XX% which from million we again, we midpoint points strength raised In $XXX able forecasted and basis to second the which our interest expense in deleveraging. On back quarter. and of EBITDA

way for quarter. expect We quarter for be to about fourth hit all and the back third XX% the the

billion are guidance now expecting $X.XX billion, our above of to adjusted We of range. end prior EBITDA high the $X.X

we in curve brands our is comparable strategically and XXXX brands booking we demand strengthen exceeding up North volumes all-time Atlantic. our reached record our normally our achieved high and essentially booking while XX% volumes an are levels behind far brands it, European ever that's the year levels. are building is us, to base of June. the mentioned, which of at has I our XXXX, a quickly peak second catching the which as America, is volumes America would the of We capacity and double-digit in we revenue the this strong on As XXXX. were booking multiple a to the XXXX be of quarter, books, outpacing both growth have higher for for volumes in In over on now rate in is With our continued strength than XX% Demand first period. Booking as carried to experienced North seen has booking European XXXX now sides quarter, growth. into out

times than prior position In quarter at also the as $X.X multiples peak at grew XX% our and an significantly XXXX are fact, high Customer added strategically once we out wallet. pull all-time off stands capture to more of over higher of sales. Onboard growth and measured $X spending deposits our this enabling levels. Reflecting of prior our for us pre-crew on packages performance, chart elevating capacity guests billion, customer the this vacation book the are deposits through our record push also strategy of our billion. of as bundled forward spend revenues our delivers booking lead and were board, once onboard again quarter more an benefit

spend, base. brands our onboard which pull ticket forward only are our visibility both laser-focused to predictability the strategy enhances and and of Our on revenue recurring

XX% onboard revenues over and of sailings. next in books months, at X/X both have of time now XX over the or given We the advance on any

demand full Our swing. in are generation efforts

cumulative Our with level. XXXX's and have new-to-cruise sailed who guests second of in the number new-to-brand exceeded already us quarter

a search up natural is is of marketing campaigns quarter, success our driving and the from with awareness XX% performance Our increase XX% which last consideration. increase board in across up an over affirming XXXX new the

the the increased time, clicks see just paid staff also efforts accommodate is generation quarter. the lead over is demand increase last trade. a with it working sales our Our with nearly To support and having are profile, the and success double which search XXXX, months. the XX% we've our also in by XX% increase we over grown in At impact XX% same recent sales can

advertising as great As seeing training, and channels be decision with critical course, benefit The volumes And our sequential continue. is paying who I've investment in engagement to sales in suggests support our partners activities. improvement advertising I've of is for KPIs on will increase order demand trade the continuing that significantly strength are The said we before, includes XX% rebound up agent investments we us off. that all and only successful, for helping trade to certainly we guests. these to of pipeline as but widen our well. By excel, are And travel sales in got not our us, our front. news to measure, year-over-year increase the need in any in our partners important new-to-cruise us

EBITDA improvements ALBD XXXX not to All of of XXXX. but Sustainability our this our intensity through launch very demonstrate has that ROIC. progress we indicators. and Adjusted each expect acronym outlook, in for our important targets carbon items, per SEA towards well our financial rebuilding reduction, significant these and built for ability and fortress. The X-year in Three stands key profitability will level Change, to performance S-E-A just strong delivering see above from current And confidence

in X intensity carbon and decades measures the will the almost financial rate fact, best X have be the unprecedented. seen we In be will

to intensity for XXXX. S our than more and to improving a XXXX impact our to the we we critical early. deliver plan X to carbon and improving performance. our our XX% to by environmental goal financial been compared continues to Reducing intensity reduce decarbonization has our carbon is be plan priority For for company. our years Essentially, sustainability, It on

fleet are the to We peers on most widening out gap the there. what already fuel-efficient is

on reach our fuel our EBITDA measures improvement high-quality we We lowest deliver in from a more and compared our outsized EBITDA the already do XXXX brand to of the They ROIC drive continuous growth. And efforts designed industry-leading currency happen, A, increase in increasing XX% structure. These profitability also sustainability on E, per improvement debt of invested business both XXXX cash measurable we targets generation XX% targets revenue growth as these and per XXXX it's years. are adjusted base cost on all make us we targeting yield than is rebuild step and while low-capacity our change markers in pay down sense maintaining efforts towards leverage lower build the our guidance. increase to investment level. to over and recognize capacity just while goal return are returns a forward have expect importantly, most under improvement. To ALBD yield our Essentially, finally, the growth XX% which net have X.X% in profitability on allow the compounded for a not we these strategy the over to of urgency we grounded revenue through doubling capital to ALBD strategy deliver to industry, levels and For time. are balance best will would we use to expect angle. work to constant. investment-grade we price X of this working, further pulled both and our execute our metrics. flow our represent are as unit annually This sheet a important our Adjusted and And yield-driven

means me now all the functions we direct having at target representing between less we strategies to brands amazing also own up success brand guest we over facilitate generation and marketing increase acquisition loyal fewer Scores optimized the me. from advocacy that curve among in our ensure to awareness calls, Accordingly, previous allow to and been of the with of revenue it identified overall brands on this capability is consideration brand major market is provide by over markets, the reporting This booking market on leads layer experience between during a bandwidth our do working executive to costs, our under revenue more target our and capacity the This space our leaders, large to brand X base each this, capacity across streamlining for make me resulting to and structure of generation and ensure I quarter, appropriately time, company To generate and removing on continue I've higher. X/X and the our organization. as management levels, market. more mentioned they will our the help of engagement to execution drive will corporate the vacation previously. This to delivery completed pricing road This us and up brand I leadership maps demand to their Net consolidated one happen, corporate growth organizationally. onboard Promoter lowest guests I of several truly new-to-cruise our XX% restructuring global hone and work the guests. To need in potential, with also drive leaders. set of As of on than possible actively to their capacity will clearly and have to support management sized building

a better smarter, more changes for organizational sales also and direct While excluding this number positioned sales to nimble are accountable work overall, me opportunities. And market support. structure we leaves the able respond to these and with to of same make reports

down is Carnival work XX% Corporation and side to is we an are grow doing shore board level. that recognize the part at make our we need high And I count each sure the to career. team team to place Our make from staff XXXX. across amazing a executing member's

goal long-term leisure's our and initiatives And so driving internal we've improvement ship and really choice, The is metrics and across on of shore meet being it been are employee travel showing. phenomenal. our board, of and we have satisfaction in the to improvement culture seen employer

important assets, Turning from our best-in-class our our people most hardware. to

We travel. in cruise are the which diverse brands are actively our of portfolio world-class largest each #X of or for #X markets managing

newly overall XX% in and further our a portfolio from These representing the our which fleet concentrated nearly and supports efforts XX accelerating capacity. brand. has with our our AIDA U.K. Carnival capacity of Cruises and in our demand driven efforts, by delivered Cruise P&O we Following have optimization our improvement, still returning yield growth, highest growth strong purposeful capacity retain reduction outlook and been combined Line, excitement ships, been also

Cruise highly of such with transfer Carnival Jay amplify of Style his successful godfather, aligns Fun Leno target and with seamlessly himself, a personality very Culinary Chief unpretentious messaging I Cruise couldn't the and the think completed as Venezia Officer, Guy spectacular Phone Lines Chief ambassadors gregarious of featuring Shaquille Emeril Costa Leno. Jay it Carnival's we who Lagasse, our Officer, naming O'Neal; better Carnival and our appeal the its Cruise ceremony Line a with Mayor month, brand's personification brand launching Flavortown perfectly which Italian comedic segment. Keep Line help ship Fieri. to first icon, this with than Carnival brand, of Just

X.X our generated Venezia, us of second pre-pause trends. entry success being million confirmed to not and Line We Fun over supports and pre-pause Costa So only to portfolio by Carnival is of Carnival supporting for also media to Cruise the of specific impressions. The These next compared Line our the generate far, the Carnival booking to XX% of pricing Lines now cost than by recent part transfers instant Italian to Cruise the Style Fun rightsizing capacity, revenue is to desired ship outsized capacity gear. profile And of earned it's of committed growing company, added has brand more Italian Style which contributing portfolio Carnival's year. transferring cost returns strategy, to strength will Cruise its of into XX% the capacity expectations. The expectations shifting management reduced are remain high effect is of having which strategy truly markets. owning brands, world-class this clear many are portfolio but a the dedicated

In live. deployment increases supported fourth respect brands, for nearly the third our that guests our taken volume quarters, strategy European XX% second achieved puts both in with the capacity to brands double-digit the bookings is quarter our to compared price and for fact, European homeporting This where percentage of each of and also XXXX. by our in

assets We the further are also working industry-leading Caribbean land-based to in Alaska. and monetize and our leverage

to revenue Cruise Carnival Line deliver largest private the the wide guests It's being designed higher Bahama our margins. with reduction We strategically our carbon of best itineraries, [indiscernible], are destination our yields yet, drive islands It's strategic located among expansion consistently array of and leaning into voted a fuel factors of efforts. in wow the Caribbean consumption furthering to Grand tailored and development port. also to to the deliver Caribbean lower advantage

port million Our million our upon X.X And serve guests Grand brand's year. to each of about Caribbean push destinations X.X annually. that completion, already will

hotels, in into of deliver own footprint a rail even assets. benefits by Bay. an more to Glacier the strategic marketing across of lean far, sea cruising most as the iconic as motor We itineraries well of these also to Alaska coaches We the unique plan lifetime all unmatched featuring with land packages and

Turning to capital our structure.

our deleveraging our already indicated are we last we sheet balance billion off on now call, As peak. have begun and $X.X the

remain to prepay while liquidity During order billion over the rebuild making deleveraging. liquidity, retaining expect pathway ratchet to sheet balance further we decisions time. of billion capital provides we decades $X.X excess book $X debt, our in as quarter, for and in used disciplined down We opportunistically which over we lowest a allocation of our still

profitability We clearly strong upward positioning on financial deliver are and us gaining momentum rebuild trajectory, our an well to fortress.

strategy by up We occupancy grow onboard revenue building spending are growing ticket maintaining a prices even our ability record on demonstrated taking already while executing levels, to with and capacity.

to land-based range a and for value XX% the of warranted over capture gap to time. vacations We incremental are implementing initiatives outrageous close hard working to demand to cruise offerings and are XX%

penetration mitigate build given unit in positioned X high well are We our advertising so and we maintain our And demand. to are do inflation, to years support to working low costs, satisfaction of hard and levels. future reinvesting industry-leading all sales while

providing on end holders We shift deliver metrics, company delevering propel debt of equity investment-grade Change and improvement value are revenue every on durable us visits over the partners enterprise growth touch. With we support shore and best-in-class path continued day focused like the for turn thanking to agent happiness margin our while place and ocean program, our once and leverage by the to unforgettable our again of and guests holders. I from I'd to deliver sail, honoring our our integrity on travel SEA we cruise of back that their every the extraordinary to to can't we life the people the who will David. and that, drive ship call without vacations

Josh. you, Thank

I'll fuel without advanced Before currency cruise prices, my today our summary provide yields of of I results. net start book a I'll otherwise XXXX ticket of quarter references all unless position. to a will net costs diems, per and constant in recap Then begin, our adjusted please cumulative second note with be stated.

give SEA on impact our our describing our of June some Change up and position. on color year full guidance financial I'll the program Next, XXXX finish

quarter, we the second in indicated, our guidance. outperformed Josh As

quarter, the our was from our range. March prices. Net March million higher the million X.X revenue X.X%, EBITDA guidance adjusted of range. up $XXX of end guidance by $XXX our For second improvement midpoint of high driven higher the at The diems points were per was ticket and than in favorability

In to billion turning record positive fact, significant achieved a with milestone XXXX. compared we of net was second $X.X revenues a yields and as quarter

net higher However, fuel $XX that of other prices to costs and between will full was from offset $XX favorability our timing cruise cost as unfavorability partially and for in due unfavorable without fuel our expenses of the a million million quarters as year. factors the adjusted impact by revenue well impact currency, the guidance

Turning our to cumulative book advanced position.

destination loss position end occupancy for For our at range. historical the XXXX, the marquee XXXX near of as is cruise compared a is higher the due Despite to to remainder the of credits to Russia cumulative and from book high Petersburg normalized advanced with the prices a suspension position headwinds booked that of of future cruises when strong pricing. St.

strength achieve position compared inventory with of in the booking the to in XXXX to less we remaining despite sell volumes levels, capacity the are XXXX the in as With guidance above our X.X% half a to year. XXXX for great increase second

Next, our we or to levels to XXXX the is June I close some give year expected at be to historical is XXXX the quarter on guidance. occupancy as each will XXXX on compared continue Full gap the higher end range. which full higher as XXX% occupancy color of year

which previous acceleration our by We on front, net the all of continuation included full were diems the guidance to a to we second than by in of onboard of X.X% our Atlantic. per is is sides diems XXXX half points, XXXX, second up net experiencing, we strong the we of which quarter. We revenue the expect March saw the guidance. driven see increased during revenue passenger have half do both over year compared a substantially improvement second X.X been in trends for ticket XXXX X.X higher X.X% points of to for strong the pricing guidance booking based per be on and trends the On

industry-leading XXXX costs than This the base June our second, Off of improvement expected to first, program turning per for to the ALBD, year points point, lower now in the guidance. X.X multiple available believe long-term The in full are to change by in investments structure, costs. compensation XX% performance X.X adjusted advertising Now X.X were XXXX without slower-than-expected cost further crew expected driven with pressures cost versus by SEA which company's the was port a the the we benefit programs ramp day and and fuel our incentive various berth area and are cruise previously XX%. point. air up XXXX is factors: increases March due X to guidance be higher travel costs, particularly than reflecting the in compensation point; worth will inflationary consistent current third, times Change and of worth investment; crew down in freight, anticipated, collectively X.X or

bottom the in disappointed slower ramp previously net inflation and improving we increase, While been the doubt in There in far our guidance per a factor significant than is costs margins are X.X-point XXXX guidance our increase line. XXXX. diem by versus cost driving has inflation no outweighs anticipated, down higher

However, and the of managed inflation talking about forget, inflationary much situation impact. of let's X have our are mitigating years the we well, not teams

per will in in morning we the guidance, to the section to earlier well of be press so costs details walk ingenuity increases XXXX issued time and lower in available than our day fuel you significant the amortization, crew of less creativity expense our take depreciation berth the not the earnings teams benefits testament fact, the globe. of In as found are scale June release despite the in expense a and around can The versus is and I our numbers. through this as X% airfares. This up interest guidance titled

out like combined to increased XXXX to However, us year which with mostly billion drove end all over we of the these will $X.X our of other of debt protecting that reduce XXXX, portion by and of interest and which EBITDA guidance. the from XX% interest maturities, previous full for I high factors the in rate liquidity the use together, $X.XX to variable of prepay factors, billion the a billion adjusted to with XXXX $X.X our $XX year million point future expense confidence rates would our expect of rising leave fixed is above with us us having rates. Putting for approximately our debt

share. And our reach with be milestone up we Change XXXX SEA We to another return expect $X.XX in our $X.XX EPS describing the to the financial to adjusted as impact profitability program per to the finish now I of in on range position. expected will third of quarter

we maturities the I peaked of As delivery. quarter, on said Cruises feel EBITDA the the time pay for billion when for in P&O We last of I $XX $X total our peak over that well as first Arvia at foreseeable positioned report beyond the great profitability export return improving believe we over to our in of credit XXXX at drew the of quarter debt I half of XXXX, second to our down are Total billion with we very and the liquidity, debt are future. debt.

debt billion. With at announced expect $XX in be below prepayments the debt today's to we earnings our now release, year-end total

Now guide. looking targets beyond as the program XXXX using Change SEA our

EBITDA adjusted ALBD, in billion investment-grade of to the reduction through quarter years. year average an over over flow in first annual This CapEx, export the during approach with during are XXXX, with end inclusive order average average annual $X X the export from in level financing through next per of adjusted cash will decades, year $X of billion flow than of build the X $XX XXXX, XXXX of expect billion will over build will years, and billion non-new drawn operations metrics. reduction less optimized per $X the of in capital leverage and to reduce significantly expecting XX% new a increase XXXX. At We billion $XX debt and $X net next in result billion total credits peak lowest and the during driving lower commitments $X debt book from debt of a debt, than billion $X of we billion XXXX more cash credit the free period the in per

transfer from program an holders $XX debt per Change also metrics represents will improved operating approximately billion ROIC in representing enterprise deliver will decades. level top highest SEA of $X share. of debt which to value X ROIC XX%, shareholders, from that, alone the adjusted On of Our it of over almost reduction and

over and operator, remind me release visit Before earnings press I the to quarter presentation. call to let turn website our our the for you second

open operator, questions. call for the let's Now

Our Instructions] comes Farley from first [Operator question Robin UBS. with

[indiscernible].

can Robin, hear me? you

Yes.

It's a little hard to hear your question.

coming and in You're out.

Sorry.

a -- hopefully is bit this Is better? this little

Thanks. Yes.

Great.

then X EBITDA in X the of And of you're you guidance of your full the So in I X-year to comments I wanted strong ahead constraints, just even clarification given do Is 'XX growth a it able looks it points come at But on means sort yield about ask increase the increase up first, time gap for the your least implied through like assume this kind 'XX. of the walk fair that I to and is haven't but points to that growth in and just period to there. on that terms XX to kind that or targets, 'XX about what a from question year-over-year, is want means on would books price briefly. And above today. and guidance. of bookings. In yield strong comments prices. what -- just quick XXXX implied been about the thinking 'XX occupancy X-year it's per maybe say up kind get of the like diem just us just that can price? closing, price of strong math, volume clarify release seems you you based to mentioned, expecting 'XX just It on between

Got it.

we're more when lot brands and is we we'll going So overall respect very that XXXX happy at first it with levels XXXX, play at the strong give book for to XXXX go What do pricing you depth on to the about it and some and into good quarter, get to getting for. at we're next in to at to way we're that ahead But a suffice more to half. price. position going our with color in record job a and doing long a still are doing the talk say,

still very about that been the over we're the we've as the of talked pleased on So course year. down we've ratcheting with making this every progress quarter while occupancy,

is time. the as XXXX about back end look So make over good up close to the experience with but XXXX, step got expect at trajectory to to we're looking around we increases we what We're probably price there. get and and real so to X-year talking period from at probably of to with normalized of I 'XX, profile we in all good. With it's the of for low On respect operations. -- be as our occupancy, And it's points top over feel sub-X targets, digits very going about make respect very, -- to we make of ability -- from mid-single on the that, you're that we've get type to low 'XX as probably 'XX. expect able to those types to that probably this back pretty make point, up of XXXX we to

from comes Steve Wieczynski Our next with question Stifel.

outlook. the the Congrats and solid year in the quarter change on full

to back last the in So there actually SEA go Change program. the Josh, to want question I

low how mid-single-digit So also But you yields. maybe about of to can too. kind you're you us in perspective, that the talked think help a bump -- thinking cost from about on

right this? bump yields maybe growth So to X- NCC. in mid-single think Is kind about a about kind of in we way like of net the yield X-point spread digit thinking and to are between then that kind low of a to

to Steve. getting norm, aside, increases. digit cost back talking you if hear the which I from basically, putting anymore, I'm expect nice is don't to that know to to be But you. low single we'd We --

expecting differential but our that occupancy, there's going We're what outs, we'd step-up planning cost to advertising before, it nice the very heard the ins thinking think be with a we're very to a you've drag, There a on And does as occupancy -- side. type expect that's news gets which of a the talk yield good on through bit about will of of is with we'd we we little and news, So still between and is what to happy come expecting side have as bit the be and which us it about 'XX take. in as been beyond. cost be bad successful.

for come the so following more we'll plans as get concrete into And year. to the fall we

as there expect you expect difference so we particular -- our those can things think trajectory. overall, some a are between would growth about rates. But I And a

then have I'm in handle so that need the from of aggressively. the guidance have stay now and hope me, bit. versus guys But look, fact costs you perspective confused want year more inflationary a -- I'm don't quarters the on guys pay a off little understand more remainder Okay. all, of first to for a in the I today I what demand row. to investments expect X now going a you costs comp understand just those just since you a And how you to stock make around your remarks already you the pressures. -- your to that But mentioned advertising I you sure good stuff, I cost raised like seeing bit we're the guess over time. prepared that and I on about And little you've market

color any would be So helpful. there

Sure.

it advertising with There's want do 'XX, to. we it to at. advertising looking it just spend doing for has the think way effective, we a So getting at been the been on get where fourth can the getting it maybe get occupancy to volume we to taking and up up X we and getting take getting comments that price about not we've quarter to but the And it at things. the want a where place the that to price respect and spend it there's the

to, where to And with see to at will we look continue be you. so we honest that can get to

So I at as and maximize, advertising wouldn't to look We've one gotten to to want want something. we somehow We done. back a optimize.

there's doing sirens the to going we're some so background And here. in -- keep sorry,

up its and thinking ratcheting So that we'll on ratcheting or keep effectiveness. through depending back

comes next Citi. from Our question with Hardiman James

going everything Hopefully, okay over is there.

need know, right? all in New That's you York. I'm to

Exactly. That's all to I need know.

for we EBITDA billion number leverage -- X.Xx X get be also, And that thinking XXXX. generally you're 'XX? get metrics Just there. think getting you $X.X grade, that investment Are in the to to as a line math? about to then target and And clarification for how the with would I on EBITDA about presumably then seems adjusted about back the X-year those math. leverage is in right

Yes, head. you on it the got right

year that Got it. you think bunch What's paying Really billion. us at I helpful. number? expect said what's total terms cash to XXXX. you this the for through And through walk finish you then the a us you then XXXX. expect? think good you about both going? Or how of down year and gave $XX you cash this where -- year see debt, the balance math of Maybe similar debt the debt net in balance And question

look total billion out you reduction. I think called What's net like debt debt basis? $X that a on

Yes.

the James, So over down cash should balance time. start coming

other our portion and deposits, cash. that expect get to will Remember, there's trying to billion, $X.X liquidity decline our that precision $X $X.X it we over good together, billion a our customer wind rebuild targeting end the bring second we to of goes just time. Pre-pause, the will of was items. at You're revolver. putting our we of level. mind that fortress, And a were the in down the to liquidity Keeping be to But that up most our do not financial undrawn see as level we of of billion. Remember, time, quarter debt all it's level liquidity into balance sheet beyond and forecasting.

So or even only cash be of it if that. may billion liquidity, we something of have $X $X like billion

the do continued we is math -- and cash very the is in project. But all work difficult are balance to precision achieve quarter year good but by of through down, numbers by the and we're and we your level coming those. that So see confident can

One clarification. more of point

queues, and the $X.X there's funds in cash What's opportunity mention So status of the from reserve other balance? that customer assets. bring the sort that, of onto billion of of deposits the a to

that rest following that, that be nicely, the in cash, majority next the off ratcheting year and and down confident end that of of pretty year. will into the are of our by -- in the majority get it line and should we Yes, of the item we back

good So progress. we're making

with from Our next Wolfe Research. Wightman Fred comes question

are sort assume 'XX targets you in the so, And if Do there? of return to you what that China? baking

to No, there is we China. no that assumption in these numbers return

our to through at able brand to and move our Costa As were the efforts Line, platform gone and China that we tonnage them you has was portfolio know, was which our management, take Carnival Cruise fantastic.

far. it As Carnival embraced the guests frankly met by Fun them so exceeded expectations to was Style Italian and a matter of with Carnival fact, how our respect

so would than assets place, yielding they're they course, speaking, a we And in I more our are good and stayed the believe. had frankly

for about with the be cruise we're we're assets to assets real for China we'll of relook we going think we be. we very that, right a are because where we are great for mobile, and years a the up that's industry. but companies, And and at fact Obviously, on sidelines But probably opening want is do can few our them excited that to good. always the thing feel international So our travel that.

in the then guys sounds And today that talked even sense. in everything said America some frame what the based sort It performance quarter, quarter, European you've just out you accelerated. about of trend North think see how you recovery exiting on Makes you've versus But back and improving you about to seen can Europe. and that has the cruise half? of continued like maybe that that, last where

Yes.

brands in the alongside America. remarks, fact talking over about prepared there me heard profile about that bookings, the you that was record in So quarter. this last our my had that European thing North quarter Europe I encouraging right we was second this and And really in

both the the digits volume is side, majority by of which, specifically the price deployments. itineraries, our for way, On double and for versus the their bookings European European brands in vast XXXX,

the second half talking take. more in It's less or You're give of year. XX%, about probably the or

our in #X and Italy in ships U.K., got really our markets fruit. France is brands, specifically in with X and to strong #X of the starting the #X really the deployed strongest or catering those in having Germany, to that the And brand we've brand strategy bear Europe, so and Spain, doing

And are they to first the against think think the comparing quarter, when trajectory versus made that you about quarter improvement second is European how so And brands about fantastic. our the the with 'XX saw 'XX respect our against improvement in they are XX-point to for the in comparison yields? a quarter European comparing We the quarter? the their first brands. And how in second

And the like Our North as over quarters. several a They're catching the brands, everything our we They improving and for XX%. American North have but just than And brands less forward. up. catching too, started much that been they're last they've bad thing European wildfire to great said, that's American not pull brand. up, really it's improved see to

from comes Katz question next Morningstar. Our with Jaime

are talk booking to there's is with a on on this the the about guys table curve. you there if pricing want and extending I some the articulating I it's being know always booking bit little extension left optimal the of curve. contemplation that

So talk thinking of managing next that few can about over quarters? you the how you're

you next like going been the back markets holistically, their the what what's sale really say, right? as of right? not the booking for definite they're really their increase look been more the hard a brand-by-brand even are capacity they putting demanding. question, holistic hey, all in are state What where give the it's obviously to So the brand actually a are it. does when only pattern, guests in? to XX What That's dynamics It's What's revenue over answer booking normalized than we've to brands, leaves, Because market? each ship we've there to for to our of a generate also give source source our about, goal is And out they most things months? other getting curve?

diligent push can to got. we'll the very there just on It's we encouraging to they the that for point variables where it far is it is So table. It's statement I see equation. I'd very, have out. It's best how can not that's the each very the how in to would worth say optimize stop. of answer been say you your is part -- I give that it thinking leaving a about about

but consider. it's it there the might and it's lot not are because for a a So -- be answer satisfactory to you, of factors complicated

elaborate were some like you'd structure is come to then anything there maybe opportunities play and how And going course. to on the add and or see we forward? you might reorg think to the business sort that improve Of of there of where

Yes, sure.

brands to and operating it are within ideally scale that of think units you operating operating how get then unit. opportunities. purposes I you're the there with organize away an quickly the that to of and not advantage scale, taking with the agility going appropriate unit, you're corporation nimbleness to doing because level And for of if you're ability you're getting move the from and take

purposefully flexibility directly speeds looked nimbleness. couple units -- around we so by I direct a able being the and of line process, and to autonomy same have it's And a it the the more, nimbleness did quicker giving and give the say, time, and deconsolidate up basically it whole of we reporting lets brand's I would them much about operating into and me, needs. At and more not brands -- act for just us much and

the more things a holistically. level up corporate pulled also to brands to few We support

my which side actually with in great Cruise Australia. got it's as -- of both P&O well. and we Seabourn America for Cruises heard piggybacks capacity scale capacities, benefited specific can the -- as deconsolidating, who particular our X can effectively, notes, to a brands, through by XX% on piggyback Australia result, and finally, Line, brands. Carnival So year of presidents players are now X% having full nimbleness corporate which bigger in a the P&O works effectively U.K., but Holland on they reports in very, Q&R now we've and me And on on you the the that that piggybacks our brand. brand. And of do small, it are both same in lead very directly I've

from JPMorgan. with comes Matthew question next Boss Our

on Congrats nice quarter. a

embedding Or maybe SEA could you Change if that help plan, within 'XX? increase level the in break little So have about speak XX% annual we to path on the deeper think improvement Maybe the X-year embedded X-year opportunity specifically, visibility the us years today, you're down the the versus to maybe given of the plan? the outer we EBITDA that target in as that just year-over-year dig plan? you glide a in

to Well, not since yet. question tough 'XX answer you it's we're guidance a giving

last returning full one as would we is curve of best talked for The commercial in shape. to yields be those our the talked pluses is swing. going in on the over say in are about pickup that about if we I'd at we X.X% in booking Carnival in and that highest the which our to and XXXX that excited all I've X/X mid-single going improvement. The about. occupancy quarters in of that of The have, maybe expect There's start history, book goes 'XX minuses be nice XXXX. several position there. low is in Cruise we're capacity activities which -- backs digit to what about a price to can a it's we're very We're So think Line, brand, our of XXXX jump, growth I we good big top versus calls, a and be to on lot about earlier which wind is capacity

should expect nice some in good the XXXX. and trajectory feel So pickup we about we what

trades. won't be not We're going Ukraine, to I get having that planning dry heard don't such energy We back ball crystal more say, me high can St. do Petersburg forecast question a XXXX. really don't there. back. hopefully, challenges. not of China, and that docks come a reversal is to we concerns as types mark, The we XXXX on Now without have you've security already have But yielding those in

good and where versus full you'd back that in like be pluses sure recent... of I'm not are. We to trajectory normal and then now there's So minuses, frankly. anything 'XX are are the getting There feel step-up ahead. David, if to nice a add because expect do and there we pulling we with to always

fact looked you what similar calculated. Josh, to of annual going it the that James into that that if Yes. call, only had the add was $X.X indicated, EBITDA our towards is I'll The billion thing to at consensus, step-up you

that, look that going into and So you but call. at was just see, a the can take

are historical maybe think we you delayered And a out. operating follow-up, about Josh, more in structure this that of your the say? back maybe I there guess Great. as plan? think in to then maybe rank as just simplified conservatism new areas you've Or X-year about particularly what the a way profitability, end not that is would laid as plan, potential that you and now of plan, the

will take Getting we I CEO we set which as wouldn't into meet begin we that would the Rank, that's ROIC EBITDA unit with XX% I targets in I to about does in set the expect line to go -- highest frankly, even our in strive to will about what years, growth just EBITDA expect margins try. get to our exceed out and out Look, XX expect to EBITDA trajectory. you'd I hope back not say, showing account and historical well capacity to in to our I a in said, what a best, benefit -- like we'll our points be think norms. beyond. I the number. good And do

of that's different So take it in part you crack you best but the at way, I'll it. to that's a you. let another give certainly I'll probably asking

Securities. with Truist Patrick Our next from Scholes question comes

that would still that cash Is at I release we realistically, might and that used able at think accumulating? about bit that does card assume had how to Where funds Last balance for right probably X billion you'll sheet. a about forward? if you that here, And be stand -- would balance be quarter, that your $X.X when that wrong, gears think debt of from going processors. should reserve I'm Shifting credit looking time? reduction me, you correct now? And

Yes. Thanks, Patrick.

they the of by different vast But of on referring in earlier back by probably rest it expect the a the to it XXXX asked XXXX. end be way. effectively we little to would of end were to Somebody majority the that a us released call, with of bit the

expect. trajectory we the that's So that

deleveraging. using And and process we'd increased point, of cash, be our and continue to yes, to that liquidity that's your

the the XQ, $X.X what And that Okay. billion, now? today, was balance of where which are specifically you end is at

the correspondingly. you'll reserve funds see QX, has of up, $X.X it's end It filed, since billion. the up customer is went At when the deposits went queue

with Fargo. question next from Dan Politzer comes Our Wells

you wanted XXXX what things to get plan, there threshold ROIC maybe -- the your of XX% brands? in you business brands How X-year the to Can bridge that hit talk terms on now? things higher are along that you've mean your there it's -- in referencing? investments you been help mix For are And we about higher. obvious the are bridge going current obviously that further what that target. I by there to or strategic of for not focusing as in that, Are capacity about you're the about there? cost of and terms maybe changes are think changes I do on reallocating that capital, are the ROIC And costs improved to us with now think to this,

so strategic with perspective from portfolio. marching we're Well, and assumes that a and in -- a of the Okay. portfolio forward current brands, it same brands are our

were timeline period, to -- me? closer about, in about you yes, talking that it, taken if have our about don't me, this I to of on within in they assets the action have about And such Beth? Yes, XX% We over it back XX%. portfolio I pre-pause XX%, the front X/X Cruise but Carnival look makeup in of -- X-year last capacity. was our XX%, our reallocate be our Line will Pardon period what that -- a was

XX%.

XX%.

our been to in brand the and time, continue. being from demand we've back And you're pace of our generating all booking So incremental is expect strategy. At looking which at business, every we is performance our that our talking accelerated which see think certainly single I same you part about, our coming highest the and return for X/X numbers of the brands. been at that focus up we've of really X/X, quarter,

So of wind letting very well and shine for And I our pay backs in portfolio, we've to our not We take with willing currently that though amazing in even is will folks nice will carry to expect their and the through. pickup give. land-based our that guests the on who that's the port the from they Grand to do brands we have are and as respect a in expect our annual number starting X.X we business. footprint because the amazing some year focus got alone that we about think in an experiences they with operations, to from unparalleled million, really be everything perspective, that commercial build this portfolio million an it's capability very do X.X in footprint capacity our to ensure a that ships strategic got Caribbean, their

Got just it. the And to then gap. pricing turning

is do You that and about that extent on have To How relative lodging these extent your uncertainty, elevated peers prices in do your And the considerably still, that there cushion about here? impacting RevPAR, some vacations. the land-based as consumer were your land-based resilience? have slowdown to on we think stability talked you a side to you and about the the think side. certainly or in see how pricing to

a slowdown, we today, months, good, you been Well, very obviously, telling are sticky. we don't are is see have well very is of the the Sure. for XX on bookings one we've especially which benefits those based what booked next because and we

So outlook. that is helpful to our incredibly

dollar us out. And strategy your ships porting reasons because We top right holiday how a to dollar. vacation in of their a to. in XX% land, outrageous our they hotels down take stick call far value are out home our stretch a are a on of the -- I trying because gap slowdown and whatever there very, people that is get there rates go. value. to where actually that chose might rates recession, ridiculous our as is resource, and and very who result, down and stick we up can be, guests positioned flagship I is not for call Now our for double-edged out to what don't with take how because That favor it a a our if sets their of we have that, sword about airlines if bit well a on figure bit still and outsized to their if And of

XXXX our one got we in honest call. happens for with more to there's you, calls. our this on So experiences, of to back, time where and And for one Every record end one with said This for is quite feel purchase focus more factors for people all well loading to different. bodes be quite particularly or unemployment, the be wanting we've those which ahead we I at recession pulling base other good. question. Operator, one got question time us. We've just still travel, could probably

we've think I lost operator. So our

see you, So tomorrow, for you everybody, for I the And forward seeing look to those I very today. will we'll you Investor do us joining Day. for that. Thank much. that Thank

That does conclude the your participation thank conference for lines. today. Thank you ask We your for you. please you and that disconnect call