The cruise operator reported the net profits for the fourth quarter were $35 million, compared to $111 million for the same period in 2012.
The dip in profits for the fourth quarter meant the company reported a full-year profit of $1.2 billion ending November 30, 2013, down from $1.5 billion in the previous financial year.
The reduced profits were despite an increase in revenues, Carnival reported a total of $15.5 billion for 2012/13 compared with $15.4 billion for the previous year.
Despite the falls in profit, Carnival Corporation president and chief executive Arnold Donald added fourth quarter earnings were better than had been anticipated in the company’s September guidance thanks to better than expected cruise ticket prices and onboard spending for Carnival Cruise Lines.
The company also used the statement to warn of the year-on-year drop in advance bookings for 2014, while prices have remained the same with prior year levels.
H owever Carnival Corp. was upgraded by UBS and Credit Suisse. UBS analyst Robin Farley Farley boosted Carnival to a “Buy” from “Neutral,” citing improved confidence in the company. She said that the company’s pricing strategy is working. Farley anticipates Carnival will be able to recover from its image issues and expects gains in 2015. The price target on the company’s stock went to $2.54, from $2.42.
The company said booking volumes are up, although at lower prices.
