Carnival Corporation & plc (CCL) 25 Jun 242024 Q2 Earnings call transcript

Greetings, and welcome to the Carnival Corporation & plc's conference call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Beth Roberts, Senior Vice President, Investor Relations. Thank you, Beth.

You may begin.

you. Thank welcome Quarter and Call. Earnings our to morning, XXXX Second Conference Good joined Josh and David Arison. CEO, by our our Micky I'm our Officer, Weinstein; today Chief Financial Chair, Bernstein;

be on that will I you All to in of note references forward-looking. statement refer please forward-looking press begin, unless ticket on will be we our and will be fuel cruise costs prices, without diems Before basis. net remarks today's this per net to the constant to call a DMs, otherwise currency net yields References yields Therefore, will and some adjusted release. stated. in

may stated. cruise cash net flow comments adjusted will without free income, all ROIC, fuel, an of which Our EBITDA, also reference and be share, otherwise earnings unless per on costs basis

measures corporate financial investor measures With in other also press our references our that, to release our non-GAAP found. in earnings reconciliation A call are our to release these in earnings and I'd be earnings GAAP over and most release. are visit like directly presentation. turn U.S. contained website investor the can Josh. financial defined press the where and presentation associated disclosures comparable press to our Please All

which of made Inside the best formulating reallocating in the incredible operating years, efforts, income, team across records. March revenues, Off and on growth, a sailing operations, over strong shore increased closed and these strengthening back This global we've quarter ship combination occupancy plans, delivering customer in of capacity guidance X.X Beth. even at commercial and X and our improving our Thanks, measure. up growth yet strides composition, continue we've to time diem strategically historical portfolio further days, another QX, the our business. drive over of is over passenger in levels, over guidance booking our we levels. exceeding Yields and every cruise more is X%, as deposits points growth XX% this more than per XX% on

to last brands XX%, extraordinary high, quarter outperformed our on highest had a improve bottom roughly delivered the up fuel, this improvement are up second continued flat and America yield We experienced our cruise over on We European with million. David years, unit again which also by yield we expectations quarter, year's record over EBITDA, quarter growth. adjusted X%. by Our continued million second while driven to $XXX by North a more up basis, our EBITDA second mark and only in per line highlight higher strong on on was with earnings improvement fuel to costs, not guidance XXXX, operational even $XXX adjusted it quarter significantly surpassed double-digit demand guidance. than Based million ALBD coupled taking prices, excluding a also of will trends, healthy for the more elaborate Encouragingly, year-over-year basis XX $XXX full on. year million, the $XXX

Now is ROIC year. this nowhere delivering. would our capable is that outcome be XXXX, of while what near it get strong us a double-digit will this business for And to

booking testament to trends that. a Our current are

previous building continued to of bookings on term, year. another to for us by year and guidance have enabled in clearly run of top considerably the per us that's higher into And record we top has for basis take points. on demand is This second taken records, fourth again, yield the strength records We quarter each our third the been last near and pricing are of and which quarters. year on XX hitting the In diems next has tells beyond. continuing the strength

which quarters per balance would or are We diem of mark X the consistent per consecutive expect higher growth improvements. achieving diem the deliver mid-single-digit we to that year through mid-single-digit

quarter second just focus a yield and Accordingly, did more of entered [indiscernible], less months, are we early our bookings demand with meaningful much $X.X position periods. unprecedented than for by remaining to while level our have future and record a optimizing X during occupancy been inventory in on both not XXXX. growth quarter. in future we last coupled even we to more for is for bookings curve power. with able into year's second not benefit. post-XXXX is XXXX already for translates capacity lean which for last of continued less sailings, us also Our leaving the near-term sell the shattered of with yet take shows the in billion flat ever did sailings more most where set taken year, another only for customer still billion. The the We than It XXXX, in-year And deposits, pricing inventory year, price last record into XXXX were next $X ahead strength it of we

yield cruise our This brands the improvement You further that demand, and consideration over of prices our to not time consumer. of is before. the techniques have heard in effect higher is pent-up this me increased building of say management translate evidence demand strength it into compounding it our ticket in and is

repeat enjoying new we're this segment guests XX% year. Encouragingly, over quarter consistent with each up growth and guests last in both

continue also actively our further accelerate portfolio our manage We underlying to improvements. to execution

Australia Carnival will vessels XX-year-old lines. year, Australia's P&O to Cruises the next Explorer early Cruise the announced, transferring selling Pacific previously we brand sunset and remaining X As P&O

will presence Of the market all winter, since Northern retain with great coincides course, us, Hemisphere for we flexibility a the the gain leading of in optimize XX% this Australian market, brand. and Not now And carrying scale, back-office It compared ultimately ships capitalize have summer seasonal on Carnival Australian cruisers. especially our greater only enabling consolidating we Line. Cruise our still is in we will Aussie operational, over X presence will deployment our dedicated a summer administrative to by Australian market into periods. to to get we

Cruise over Line class this These ships By from Cruises. successful XXXX. X reshape XXXX to with scheduled brand, continue as delivery actions, will fleet Carniable from brand XXXX to the boost represent joining for bringing about since XX% capacity up the further we of XL same vessels the the highest XXXX, new the Carnival time, our combined X including At to Costa Cruise move ships of X our total by XXXX, maximize will shift and portfolio, for Carnival XX% portfolio XX% Lines grow our in ROIC. will capacity returning

improved the calling half XXXX. course, returns of XX celebration Key Celebration Of voyages Line coupled that efficiency key Cruise growth revenue experience, XXXX soon uplift destination to in key introducing in its and ramp and built the amazing our strategic support second for Carnival location. with purpose ships We're given beginning bolster to will fuel incremental up celebration

tens and This godparents. Cunard's amazing thousands Queen a joining moment England The we [indiscernible], Liverpool, also It Queen were as with delivered Cunard's Liverpool birthplace. entire quarter, festivities the an the an people city wall ships historic in of time was with fourth naming of official Liverpool the city the of of streets [indiscernible]. first became celebration ever

with scores. ceremony had hit and one-of-a-kind The event experience. expansive for. intended, as Waddington DNA refinery focus on it. We the step been Hanna event of beverage British is high-profile specialty enjoyed generated the [indiscernible]. booking class back naming is for and and yields that known The Princess with high elegance the guest the guests as Castle and satisfaction leading on its way while particular first by a [indiscernible] of Queen Barcelona broke [indiscernible] Magic coverage Godmother dining up overwhelming evidenced a brand still has forward new media the for to Princess every retaining in offerings and coverage records of [indiscernible] has another Cunard, of great big its naming also Princess, and outsized following with in

West Last fun least, Italian Bennett, Carnival home [indiscernible] Carnival [indiscernible] billion style triggered event media impressions ship [indiscernible] and Coast a generated X.X in to Italian to nearly featuring style we Long but held Beach, Welcoming up with for Godfather, of step not California, second date, bookings. Broadway starring naming a fun course, [indiscernible]. for and in Jonathan the

amazing them, demonstrating were in second improvement new digits basis. up existing to strength contributed we on even our fleet ships yield strong same all fundamental ship While a excluding double yields the generated on the quarter, these

addition, onboard throughout changer and real quarter, the available In us deliver service to of rollout a another revenue completed our WiFi our enabling game this fleet. land on experience, we Starlink high-speed the for connectivity same uplift opportunity

only in our mid-single-digit our out from receive will Celebration be increased focus yield improvement, long-term the key development, build in low realized enables our set book future Not on It friends and achieving technology to our destination yet enhances does commercial to targets. the our portfolio crew management activity a connected. this position, provide record, with more in our our stay to flexibility onboard systems, stay consistent win-win-win. with and track ones, touch it Also, our benefits our operational to growth guests loved confidence and

[indiscernible] targets. will our of In upwardly on confidence in gives [indiscernible] of greater way us be, average, achieving achieving and just we fact, X/X based years our ROIC even X after per the carbon $XX, year targets. reduction XX% a XX% on X with intensity remaining ALBD it guidance, revised to in our

solidifying you. has amazing well and another hand same global years over since happiness achievements in which proud this a so experiences With an for believe month, The all XXXX team, unforgettable improve I'll return Equally manage yet over down of elaborate top travel our XXX,XXX up down the David. to had continue accomplished Everyone it the reducing CEO. our to many I the other to had At of it on And X and over again ratings without strong we stepping very to in sheet further to this the we such David quarter, amazing [indiscernible] a all our debt puts and stakeholders. to the time. privilege credit X of time, the to we've quarter. will to short a it strong. delivering will into investment-grade capital turn time. all us partners interest deliver path from XXXX. to aggressively role our number our hard very taken yet It's support do amazing actions to million amazing on. worked important, been Thanks am I we've couldn't setting course, thank just structure agent of the of and team, us complexity of guests quarter expense go call while in they've of have balance you. vacation our Credit hard in that, to our

second you, today of a Josh. quarter summary start XXXX with results. Thank our I'll

and full Next, highlights I'll Then third improved and update guidance color I'll some of our on efforts. guidance. with refinancing our on year finish an up our deleveraging provide the June quarter

to the of turn quarter results. summary Let's our second

revenue came in nearly as worth almost March we outperformance driven once million by $XXX as prices points X driven spending. bottom in year. first, exceeded over guidance This was in XX% essentially to than as as The compared more by the outperformed onboard March closer was well line favorability guidance, prior million by $XX Our yields up than ticket things: X.X better again. strength

without and were cost compared worth per ALBD, million. fuel came in X cruise $XX which March points lower to year Second, over guidance birthday was flat prior than available the or better

Some cost guidance. June were flowed savings to the year through which quarter, as during identified improvement our full

favorability the cruise the of quarter between second the expenses most of due However, the was for to cost quarters. timing in

time, and higher of worth operational XXXX. back in the Other improved on prior occupancy slightly of the quarter prices both $XX second European points fuel path outside growth over second onboard sides as higher quarter occupancy saw the were versus brands of prices percentage the their currency same compared XX the considerably driven ticket to third, improvement for X% historical At million. diems offset on Per spending. improved year to our Atlantic their and And by by

fantastic Our record with operating income. prelims strong and across second record quarter record was the delivering demand, board yields, record revenues,

of positive a simply quarter is between second quarter quarter The third for one difference yield yield we quarter greater thing are we second strong the in our in XX% the quarter saw trends the guidance occupancy began of The third our the the Yield XXXX expected the is highlight in the to the for half third third. result range set X%. historical had improvement occupancy to Now about of the as in opportunity June sailing at we guidance within the second second continue quarter XXXX. guidance. and over

majority anticipate strong It we third we improvement. in is drive that continued the the forecasting to great which X% premium yield quarter, see are the growth will of

XX.XX% driven approximately Turning June and in in this forward. first, an for full by seeing year continued guidance. we so million. guidance going our June to guidance the things: X to year $X.XX we demand improvement on increase trends of our was considerably income been improvement net improved This [indiscernible] billion, approximately yields over based in anticipate strength have $XXX March the higher far prices booking is

in to this about expected of of All is million. drive $XXX net an increase revenue

mentioned, that I as we year cost through we flow guidance. Second, to June full previously identified savings our

will by driven And refinancing, However, cost net operating We flowing both improvement industry-leading improving offset be our spending always they the that year. of improvement we higher third, the a partially higher our forecast an million by income. in increase occupancy Net debt are be XX.XX% of opportunities, can the full on prepayment The structure, strong in improved all $XX and our for in through compensation and of there for recognize with $XX second the million, prices, driven X on by levels variable Atlantic. activities. interest expense cost components we and higher quarter XXXX repricing -- of yields focus cost is within parts, historical higher over result component which at harvest time. sides onboard even ticket all savings will

during quarter, will second there. we the not identify cost savings we While stop opportunities

of our endless We quest with efforts. up for will summary I greater deleveraging cost continue efficiency finish structure. refinancing in and will a our our

interest flow program from free quarter, second of took billion facility, cash our finance associated billion. preferential the of continuing generated at her export new to drew of on new build credit X rates. operations [indiscernible] and During spectacular strategy and cash we our $X.X We delivery $X

secured to manage proactively profile We our loan billion efforts continued the of quarter. prepaid throughout debt term $X.X facilities. Our

net the our reducing due unsecured $X.XX facilities. notes extending expense and an also annualized expense $XX $XXX These in XXXX by our We due basis. same issued for million loan those capital interest of $XX XXXX, on $XX interest second billion quarter net notes repriced of transactions reduce approximately term we million reduced and interest by simplified expense. maturities secured unsecured XXXX, And refinancing structure million the will million

second on future. $X.X Our improved quarter the was our prepay to and decision billion about optimism performance our during financial the our debt of strong liquidity, based

We more time. to will over opportunistic for refinancings continue look

compared and positioning around approaching of our in to as X-turn billion, year-end grade our guidance XXXX, metrics and to net debt-to-EBITDA continues leverage invest will our XXXX continue improve. way Our of levels improve we $X.XX path EBITDA down metrics. June improvement EBITDA debt to the Using grow a leverage X/X to the in expect X.Xx us

back execution Looking of in leverage continued driven further book cash forward, rebuilding we debt lowest us process our moving and expect order substantial transferring our free holders improvements continuing fortress and road down shareholders. the flow, sheet, build to financial to the deliver by our balance while value ongoing in decades operational from to new the metrics

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

[Operator Boss comes Instructions] Matthew question Our the line first from of with JPMorgan.

on congrats quarter. nice really And a

just for than given XXXX, which promotional elaborate you then a how And to cited outs call higher maybe forward Europe? on of that the in -- the and notably booked 'XX the ago, pricing power just progression the as view? year maybe could periods translate your backdrop does Josh, you that versus momentum So any historical you're in seeing, global position

Sure.

global momentum, global probably that's think It key So I the is term. momentum.

ever In this to ago. as really last bit helps cylinders, the Diversity And higher our quarters from brands, and America, all gratifying. X me seeing different say at right is we're sometimes come from because of a times, been. got North this it highest different than our brands, its probably we're hitting about it's wait portfolio, you strength North booking hearing and started situations places European you now little is out seeing we're really in Europe, curve sometimes so American which XX that and is the years. the in different strength on it

So pricing and good getting really the happy. are people consumer, speaking a the right job to teams ships doing things of our on and

is both of first the once, out this stop to able year an have goes, where figuring and short XXXX the currently to at booking also easy -- managers curve to to as how which brands do the we things those for to the balance do term firefighting in been revenue where we've to trying far and As is extend are, that while not do.

and firmly really do you So as call, is days, longer-term bookings optimizing they're I focus that early doing. positioned are and to heard and we say exactly on a feel our can what it like ahead on pricing place the ahead period, in in although which is be, us good is team being

line Steve question of next from Our Wieczynski with Stifel. the comes

around early a I encouraging -- that Josh, bit demand really that on, XXXX? commentary And mean, add last certain still versus or the your Is more little point. bookings but strength to pretty much So others? strong I are it's on question showing know the elaborate could in across you itineraries is to there board seeing this you're XXXX about more at the where look, strength or there. are brands

point, it's It's Yes. the global. At this tell I'll brands it's and just deployment. you, the

So getting commercial a out good And extraordinary that their the across -- getting messages job people lot hard an there's space. are behind of doing a work hard brands the of and interested.

I so it because broadly. we're shout-outs or wouldn't seeing way any So one another give

And then, David ahead. go sorry,

Yes.

in also next also Josh we of year. modifications well about XXXX flat. celebration talked mind, as increase portfolio So relatively keep in It's we -- have that, the top key on which don't help as made, should capacity and

move power the us that hope in we provide pricing booking should cycle. with some So I XXXX through as

picture question, around allocation. second And bigger a capital Okay. question

slowdown any taking how So this at bookings, doesn't demand place. based year there's is like seem for strong just next early on it point

and if solid. to a year the look out look guess bookings I continue question now, is, we from So

rating. it story. you to something is just you're in mean and [indiscernible] the sight, are to back mean, position I dividend closer more that a milestone investment-grade even Your fair on. be an another think bring focused it's and becoming this I the guys could in targets investors essentially I are to think to important

get is our sound And the conversations, wait do. to from restrengthen balance premature. the there, got holders. those returning record Steve. a I'd probably a and you'll can't work too. now, equity like value be free flow, priority when generate that's that broken debt We've have process, in cash to of the I Right lot know sheet. to debt Yes. down that say we side the I but here, pay first all to And

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

I have return questions capital. on invested on some

First for one, target on then could that. a I'll give if capital kind have question. return celebration of wonder invested some and follow-up What color I key. you on do ballpark you us

talked about this we've What at look could investment. a Yes. like almost build new is you

from from benefit well. of key celebration perspective, not teens, new a least build. to so [indiscernible] and time, land-based we're looking obviously, less we'd investments our it beauty expect is across over And ships the of build at dozens for no high mid- as And will

Okay. luxury going the company question. A -- space, river public an in new -- XX% with existing public a follow-up Certainly, new they're ROIC. doing

granted, business? good certainly popular for being a out river a ever quite folks you existing crossover bit line a I of of could envision Now that in and niche. seaborne rule Would your you customers. it's getting cruises

Just around some that. thoughts

It's on make the like us me -- never all niche, we our We've on And course doing impact needle do pretty more I we look and it's we focus at say that it's and in an say if the for have will Patrick, of heard River again. much looked to and something this things move in business. as better think brands wouldn't it a the focus normal just on and and rather past, we'll you've I at grand. before, pretty small cruising the

comes Mizuho. Our of from next the Ben question line Chaiken with

way the to of years with X XXXX X/X targets You're your remaining.

to X As yield on the tied necessary or a yields the remaining costs leverage to opportunity around you're the where leverage feel related Can I better to toggle what to the specific generate goals? And you threshold? Or between your enough then you're you reach expected? quarter. requirement getting costs little follow-up. cost specifics more think maybe in is bridge there a then greater provide and have were -- about do operating And quick or seeing the more side and operating your targets you than

forward you we increases norms well So certainly that get certainly tell after basic outsized going both, as first focus pricing back, at cost mid-single-digit company and out and position. when on revenue to our would what to set a on to the beyond looking [indiscernible], question, trying historical we're and side, on that's we we're revenue the a a low that the set We move math expect versus from generating leadership maintaining price to our SeaChange. continue perspective I expect, I out occupancy

do We good of also the managing need cost. to a job

I just don't tether jobs well think see to to we have one our doing It's particular change any So thing. board. the across

As as yes, do you -- go want ahead? far to David,

Yes.

as the the seeing but concerned, well. cost year, other of if at is broadly majority the opportunities you look quarters. we sourcing the the in far we area, in second timing But between the efficiencies of as are As cost did was a identify remember, favorability number quarter, savings,

isn't one it broad-based. any There is particular So item. -- one

there hundreds flowed items that working savings. are across board, cost and year all are . into savings teams of the hard Our full that

the then, will you And Josh, into sunset [indiscernible] announced in it. Got Australia Carnival. quarter, the

can You and areas customer you realign. you across and still are the of Do a have streamline of preferences. brands portfolio geographies number other feel there

in but a Yes. a unique. P&O small it's to dedicated It Cruises is a market, bit market. a brand Australia is tremendous

that single-source ability grow of as size brand market And a is very not so the to feasible. really

that figure made frequent . to it's on P&O retiring our years, basis We'll looking continue moves optimize know, growth to how of so portfolio out time. management to of to something you brand from for horizon, another We've X try we but plans. there's Australia. last get on that. very as ships we ships, of at the our with over the been lot a And couple we're synergy to formulating to moving out going do the do operational a nothing

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

there, The commentary of a pricing QX especially, has slide the momentum showing lot think that out I showing been very in concerns you particular. helpful have in addressing in

additional giving for you thank So clarity. that

one on number that so been to something Islands just words, the limiting some Greek somewhere be there Tuesday Just just being might Wednesday, is ships next not go the is official next just there whether year be some some rather of -- or call year. have about? that headlines considered. that context there we about put a go the changes looking that, you to that been would or that a In in year, whether around anything question. than all. out to not as There actuary should even able anything think so right, ahead different opposed clear that's just thinking about of we at last Can that It's changing is other -- [indiscernible] when there's to

Sure.

great our a and to with have sure Greece communities. things we're we it's sustainably. obviously, make local So job And relationship its doing

well. had work years, needs a I we'll as with in for job. to out we fact, with news have them them, to have the as lot caps that's islands figure place our continue can In up we mean, work their that's these then lately, really work many come with and and of coincide how we

to course, the successfully. expect just all So partner relatively work small relatively Dubrovnik, in of with local our mix. us, know, and on. places, -- move -- of seen you've benefit in it's We you disruptive. it unfortunately, and part the -- economic for right? who incredibly so do you overall I a we'll this par communities want We our if a anything lots places just this time like I It's don't for want continue mean, context, and is

it's and talking and show single-digit to we low well. want us, up want we You're to up show to important percentages, but

follow-up. Okay. and Great -- just one

more on quarter have something new given you little give percentage color different new-to-brand cruise that might a you this can overall. quarter I growth as bit Is to versus for think last well.

Sure.

about was to was bit to XX%, a X%. up cruise up New less new little brand

moving with So repeaters components. forward XX%. up we're And . much also you Brad is as heard pretty all

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

Question.

So bigger clarification, then with Can just that had picture you've digits. up the point of some getting X for question us how per there a sort benefit there. pricing? help much mid-single-digit same of yields occupancy is of, you ship talked diem double I And is Obviously, you growth you're being guess, quarters. about

don't think you You decelerates? point of couple pent-up demand. When it's made ultimately you like Josh. It times, do that sounds why a and think that

Sure.

So almost price, occupancy little a see. well, occupancy. same which It's it's XX-XX and on between the really price more gratifying the fleet, than bit to are but is premiums there as

for As end, far as you line when that. time our wouldn't growth give to has I a

to grow front us, making doing people with great board and of and deliver all a with have lot actually the we're room X,XXX think our been The book we making and people marketing love and sure our through things right with trade in that partners. is the I one we on XX-year-old of book sure we're them things performance, X,XXX say creative our [indiscernible] back. the marketing ways, getting actually right And to or people, far we've to whether that I'd newest talking thing right a we and guests what still click in ship it's do. in with one process, of the it's guests, coming as the the about as for last right the years still reach are of getting

point things. don't see natural as those ending we're I long a focused as So on

to tremendous And let land-based me are alternatives. add in to value that because compared we still

job And people cruise. our call, the that time. think, continue to vacation great that, a close be on we're and up. And on price, last keeping able should continue as levels our we guest ships, raise to in as a we love resorts satisfaction And levels keep so gap, on mentioned the free to mind of progression service on I value have and deteriorated. And Josh, people top that land-based it's doing the -- over the hassle

demand position, XXXX up keep generation we price can are efforts said, in to expect as expect we so to our see and Josh book improvements. we prices And continue. continue see that in And to hopefully, high and

the you've And Got as a diems. follow-up mid-single-digit like per occupancy diems, we about the the we a next NAA the about Europe last of I had is now each than right, think up, that they as along range quarters. it quarters. And X of of pretty lines, sort North as that are Obviously, similar the to per we stronger tailwind same could big then move or diems in at way other? Europe be sort think, couple for per X seems slice of it. Any dissipating, forward is we versus versus Europe as think America guided

peg in that Sure. quarter that the any in and particular I one it up normal on noise always in over comparing. EU to the that America there's I'd show thing both we say But you're given time wouldn't pricing. -- expect North course.

do particularly I significantly the catch higher not to to it's occupancy, per it's think at actually means on were brands but working. the gratifying, so able frankly, only that up diems EU

they've the deems thing are -- I end maintaining yes, so and And for still quicker, for of America. lower. day, a recovered pricing. I'd they're and little bit say the they're But mid-single-digit same at North the mean,

well very bodes future. that think I the . So for

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

you and any optimal. is on on you there booking certain is booking 'XX. that? again a strategy quarter. year's optimal about the next little have you do was length, that curve further think I ahead want maybe My not know on Josh, hoping don't you're point you curve. curve I a feel management where bit length, you But to already. revenue it's the necessarily could more the like How the go booking Congratulations than on for elaborate question

yes. Yes,

with Brandt, you, is do congratulations. it booking that ship could lots that thank say I booking So And by our that very not history. farthest brand our me very But you mind, do by curve is hear in they okay. way. sailing through the we point going well The up also it are brand basis, time the overall for out that x XXX%, is reasons, number and what that's when be what you're go on increasing in is daily over to ship feel optimal When keep teams by out say figure we give we this our of curve. occupancy -- to and and a a rolled-up we sailing

Our ship not as leaves it get goal is to time revenue possible the long much for the as as is as humanly to by possible generate sailing.

talk other, a so it into the call. into what you you just versus are And that but balconies the variables price this on not many what matters there's are basis. It's against base the base I we How so it loading, at? your is And managing about lot go mean, each that a output mix. inside. detailed goes loading on

means So the optimization. . very does optimization -- it mean not teams are elongation, much aligned.

them brands. ROICs I versus you is know that or watching That's Princess, across those of super about helpful. describe others follow-up own those on focused talk your you've X in are the been we've point guidelines. guys X How at sort on Those My would and And been outperforming brands the America. X Costa, on this benchmarks success along that X improving improvement? any are you [indiscernible] those of brands. your X them. -- in

Sure. showing point improvement world. in from They Well, single a expect. of coming I'd all the starting were the that X fact every with start them in I'll which pre-pause year-over-year significant different back is ROIC,

where So they one were. is of them actually above

actually where them. where higher brand One to for and were. it they of were bit below is But wasn't very because XXXX say one them is it's irrelevant be of at little I'd because that's higher. expect even good they the I them of a

of the are yet none in ROIC. perspective, news good XX% this is them my at from So

them and the of potential All that, to got that time. over for place do to we've have plans in do them

progress the So across board.

line comes with the next from Conor Our Research. Melius question Cunningham of

in customers How new prior they're engaging Is Just talk anything changing I if little much you is think the the was -- I your that than about there on with just different general. product? the or demographics cruise. XX% curious project doing to you the of a could said demographic generations? younger bit

everything Sure. is right? comfortable everything than ago and Well, XX and is more digital with So engaging everybody getting online. everybody X they that's because did differently years a deep question,

got generation be when year got comes to brands average going that's years So society. when in a not mix, to might don't or millennials, want We've shift grand a millennials. We scheme pandemic. to age you be that a with remember got huge like a that might carnival, in X than were We've a it that we've mix it younger to we've younger millennials. And just it's X do about [indiscernible] before cater outsized to swing. that's be really about our portfolio like they also and comes they're our the attracting brands the just got got some things, In and us, older. not of -- it's

Cunard, they're crowd that So an has say America, strongly like have time hands Holland a time or want like can't brand a it leads generally enough, need place which working it on to a maybe because and where not they playing brand money, anymore. and in that people older I is their crowd

And so getting X, take we're in happy boomer we board. the generation and because we're are mix, it. and mistake, make a name our church Gen to we're But no that with Z, broad Gen folks many across the Gen happy I'm Y, you happy very

want all. . we So it

needed any the into like Appreciate curious on is investment Okay. this away, on impact there or potentially there it the Australia as is P&L as Carnival, that -- then P&L time? brand being during it. headwind Just it. [indiscernible] cost you associated transition consolidate goes with that And like any

from with obviously brand. do experience quite CapEx have some great on But but are have, we're There get minimal and onetime effectively to aligned We it's for that the Cruise us, we're absorbing, going do much stacks a market. ships, that Carnival really investment for we're particular ships costs to some they're those because We're instance small. this sunsetting Line. in -- primarily guest to don't we a standpoint, the Sure. going to IT to

speak significant nothing of. to So really

And on the on flip well. the side, there will be some operational efficiencies, which costs will also as P&L save

question of Georgieva the line with next Research. Assia from Our Infinity comes

for Excellent what questions. quick quarter. have Really you I X accomplished. had happy

is the one external first environment. on or competitive The more

guys you about XX% follow [indiscernible], and public quantitative, and know the pricing surveys, do really of are this we companies. we extensive private David which As and

into and the discounting risk some seeing one also may how a QX private territory of your a may XXXX comment Josh, David, we're competitors these to external on QX and pressures So carry seeing towards out by Would your of the possibly encroaching willing sort is be be winter potential into one. best of season? to another that you, brand

I you for thanks -- so kind mean for words the us.

full quarter you effectively the As each you we giving for the you the our gave third heard, of year. -- forecast for and quarters by

So with respect companies. you competing not us. improvements should because traveler grand the continued competing expecting companies price with to see about None progress, thinking can space cruise to competitor continued be one of scheme you any We're their With to taking us vacation the disruptive cruise over type things. to of with vacation of mid-single-digit it just the get in remember, got time. we're we're in

really talking for one to yet choose what about, that And with of which job great the our and the all our how amazing deems providing size you're perform in here operate. to feeling. continued you even we scope, record if strength brand, experiences. our are our no themselves momentum. which brands revenues, seen brands, over It's matter some I how and the markets have I they this know Given record nameless we've described given further, really And in given differentiating and a it, have focus world.

a follow-up quick question. And

described especially continued that in higher from somewhat occupancy out will subside ticket do again, XXXX. next QX. because Should QX, QX on. going the in on a QX start expect think, we price we passenger just You and I occupancies, both the being the And and with being believe that benefit catch-up been year, that's slower Europe uptake in to but tailwinds a possibly European benefit of into lot, going or source of

Yes.

you got the of call, back to recall you last actually last occupancy historical earlier levels second heard If half David in the on year. year, basically we

make by the So a were side, we range than certainly farther more a the QX, specificity we to say we But opportunity on little we in doing were right thing to guidance time giving got the you've before, there's as are want the point bit the occupancy really, little an QX. with behind the in brands at and decimal shouldn't as doing target that where reason into and on heard curve demand managing we be price will is sure we're forward that trying got simply not But the increases be of expense to push want for. of mid-single-digit beyond, managing to me why to or revenue the we fringes. not the and that XXXX doing that make to the they keep opportunities with at the the type point occupancy occupancy in always we There momentum get up something you on our move to pricing.

we very we making over is time, the dismount generate kind and most the yield is goal that occupancy and combination much do our there. sure So which price of of how nail the

I on appreciated. total especially the Josh, that sense, understand makes guidance. occupancy And and

expecting September. luck, things great in good we're So

Morningstar. Jamie with comes Our next from question of Katz the line

I have a question. quick

the risk? environment keeps risk? regulatory Is What been ESG has you night? Is up Is at Given there guys. you some nothing for now. it right that so it strong

hear Just side the sort of of curious the to other [indiscernible].

We got XXXX, got through and I kids. X

keeps night. up comes I comfortable all, much the to it When I it team can So mean very this, at control, within manage not we feel that our me frankly. anything

so worry have a swan miserable Black about because don't really you spend you'll about life. life I Black And much Swan your worried can't or

what what us, keep adapt as flexibility throws it and We'll attitude we So and take have need out. we mobility, us we'll on. move do. about at part and things world greatest when and figure people And of a you at to is gives to modify performing. this business throw needed from got the to our And mobile. the that perspective lot we're that you is

from comes Dan question Fargo. next with the of Wells Politzer Our line

you're you point? mentioned then the one up maybe to those uplift in and on mentioned Celebration of fuel you're at which extent on spend? is change calling this whether Josh, what tracking built ramping about XX there you know targets, First well Can XXXX. Key. the sea prices, you that onboard ahead already port ticket this of there, in it's expecting, you're ships form into I talk

Dan. Sure. Yes. Thanks,

island, comes to incremental components because to are next returns amount of because our we're overall be out did XXXX that capacity But those which spending as fairly of people. be its X-year It's as But X you we this we X things the plan. into a when components, as second factor yes. -- really we us because not yes, for savings to in price answer of that starting it benefit going breaking uplift fairly for next it on it's It's the the So that minimal demand. circumstance. year fuel going celebration It's be key. really the going that to to through half for incremental question, thinking the think We're in of were insignificant that's nailed onboard year. the hitting drive And on those location. call in spending ramp the your the

you it. think of have year, ton we think -- kind advertising growth end item marketing of follow-up, to Got But about I'm my capacity relative in year, acknowledging with you that and on for starting a key, early. XXXX? line very the Celebration terms opening it's but should still to component the one in don't back of about hand, just that And costs next of the then for as how

key So add on and side. the that return be anticipate benefits side. is, onboard we perspective, and a a and will revenue hopefully, from fuel celebration it great spend clearly cost it will savings the the costs, the and but do

any not make to to to bottom and income managing key afraid we're and line not it we're our to success. We're operating item. celebration it -- managing invest is a line So our great in particular

front the for the -- be on thing going we XXXX, also into on guess do Evolution those dry we program, only announced ships will cost is the we're [indiscernible] other I'd that dock. While I add and

see will also in days corresponding XXXX impact versus dock increase we'll a So cost. 'XX, which also in have an on dry

we if last talked we're ultimately, And I that or for call right doing remember not. the think we can't about the reasons as -- though, I on this

and time, about I gushed a is to on think significant a we going I one investments. fleet, which asking us about those get think AIDA's were going and as we've our this great outsized returns brands, to then for your long question did. to of them specifically because And is their existing to enhancements make highest is investment for a advertising we're -- you returning well.

be we year. selling We're to booking that optimize whatever cruises growth. But as do on right, curve beyond go we going might no current part incremental my in with marketing of not brand. we're the outsized it there's mandate going that presidents there spending but floor You're might or a try revenue key our or and planning cap year, is to a flat is our no the the thoughtful as be have make year to for that do outcome. so The sure the space. particular I'm our and for remember, that well capacity throughout truly what we're And process, is predetermined Is brands, -- thinking talking right? . I only being every those the not is on? into initiative are brands go spending have whatever through advertising, a plans it future it generate effective? to How we to

the the where and at working. look been up the to seen, as -- we've critically. significantly to we helping momentum talked we we now. where you support stepped to about It's continue that think I pandemic it results been got, we've before we'll you've have are today It's that and were

credit one mentioned your very just IG, know it. getting I to I quick And goal make no just IG an in sure very returning to back want you of metrics. rating. David, change that Got then investment-grade clarification. last to . there's

rating the and No can't can change. the control metrics, of the control We we agencies. decisions

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

balance rate wanted the that. And follow a look, quarter. with a we're beyond progressed obvious we balance think you're with Well, what us just you balance respect little cut. where Nonetheless, maybe a maybe wanted one, the sheet. on rate sheet. period making you Can I to I light I around progressing would through could easy on in good math last congrats question the that a to the very progress or expecting for follow-on on help do respect to to sheet? cut that just some all to number shed probably

if Well, our is about look rate whole to profile debt variable of start with, you XX% at our portfolio, debt.

our we're rates future it release, double of and would XXX an from half of the But cuts not year, come I on environment an the the we're -- improving earnings basis our back top because in $XX of will rate -- in to credit. that, for year, refinancing it's perspective, the really, saw rates our at where improving rate credit cut in you lower expense those credit interest and just drive we should interest hopefully, us, do the because as million point down, And the full refinancings think expect was interest And or a spreads. think of -- the down. it's that. for rate interest would reduction I So some benefit a

time. value opportunities do and refinancing positive, at looking which in evaluating good present over we be some have the should about hear at that we're you'll So that, keep future, we'll and very more

up I follow if appreciate that. may quickly. And I

performance a where more Josh, please? new us a next, how one talked that which going I things et marketing, of it's specific an you believe, is, it's update back, bit done, initiative. you to on relatively the Just Could give cetera, what's about, was,

Sure.

just in clarify, approaches. the a was just initiative. the right focused So had more right resources, new right ensuring capabilities it wasn't It to we the and

consumer can how and we adapt curve. as sure that ahead things of making be do going that's the changes forward-thinking time do to we and mean us, be to going to thinking in actually to we're how shocked how digest stay that We've is which we around progressing. we're and being as I'd -- nimble things ever point about So that where if and to world a keep to is about the consumer talking always I and and see got at not we're performance marketing we're dictate. if

brands it sourcing how certainly from as It happens, me. cetera. from markets, it far as source does because group Miami different So centralized from in different different doesn't happen segments, et a happen not are corporate

have for as that operating sure as are X teams can. doing their we're focused really optimally make that brands our on to it units So we

we've think time one more, operator. got I for

Zackfia question comes line Blair. of from next Our William with Sharon the

I marketing on about I'm attention historically, to about our of gap per Carnival kind to wanted there an set of far of cost the the spend And leader. does Is that been are the you opportunity known go willing these as harvest has cost to relative birth to more as Carnival kind how that of savings in convinced you there? mean, going you're of Josh, But and harvesting you guess, reinvesting order elements creation savings alphabetical ask creation. kind different I mean, in calls. demand on these how between I garner I you versus and think touched cost that? demand competition?

Sure. Yes.

-- want be heard to you leader. we continue as So so to cost the

not mutually think I they're exclusive though. be they -- have don't to

have more in It so it's been been bringing not And reinvesting cost has And business. into on we marketing. marketing. on just the

ALBD pandemic. per since versus think before pre XX% to what, per I ALBD the XX% it's XX%

in we bandwidth. you -- we're people are ever bandwidth we're food more it's pay value experience we making for. providing like -- people certainly, and on sure that. if alternatives We're So our the see We're about the and and to service. of something But generating -- have, love outsized it's reinvesting amazing think spending services. land it's and willing returns It's than because onboard

we're happy a examples revenue metric and the for. don't much particular we're get year. particular metric. do up we're there's I very P&L, in says, to So that to this down reinvest where how the a to I don't that or have the any is right to behaviors drive have quarter looking going any

our we got work mean do. operating I to still clearly, margin,

were EBITDA us if last and in June from it where a about points 'XX. leaves get be will we few Our bump year margins, to we short a of it guidance, X-point

to do. more got we So work

it. from both is And on that come will the sides. so very team And focused

So to that cutting point, to right sure things drive won't We the to be make your got revenue. we're doing just it costs.

you. Well, call thanks, again in everybody, and Thank to for today talking to joining September. look the you forward

Thank concludes today's you. call. This conference

disconnect participation. time. you may your at Thank this You lines your for