Carnival (CCL) - 2025 Q1 - Quarterly Report

Revenue Growth - Passenger ticket revenues increased by $216 million, or 6.0$3.8 billion in 2025 from $3.6 billion in 2024, accounting for 66$189 million, or 11%, to $2.0 billion in 2025 from$1.8 billion in 2024, representing 34% of total revenues [100] - The North America segment's passenger ticket revenues increased by $159 million, or 7.0$2.4 billion in 2025 from $2.3 billion in 2024 [101] - The Europe segment's passenger ticket revenues rose by$52 million, or 3.8%, to $1.4 billion in 2025, despite a 2.9$267 million to $543 million in 2025 from$276 million in 2024 [116] - The occupancy percentage improved to 103% in 2025 from 102% in 2024, indicating higher demand for cruises [95] - Operating expenses increased by $62 million, or 1.7$3.8 billion in 2025 from $3.7 billion in 2024 [106] Financial Expenses and Debt - Interest expense decreased by$94 million, or 20%, to $377 million in 2025 from$471 million in 2024, primarily due to a decrease in total debt and lower average interest rates [117] - Debt extinguishment and modification costs increased by $218 million to$252 million in 2025 from $33 million in 2024 [120] - The composition of the company's debt as of February 28, 2025, was 61$3.8 billion of liquidity, including $0.8 billion in cash and cash equivalents and$2.9 billion in borrowings available under its multi-currency revolving credit facility [121] - Net cash flows from operating activities decreased to $0.9 billion during the three months ended February 28, 2025, down from$1.8 billion for the same period in 2024 [124] - Net cash used in investing activities was $605 million during the three months ended February 28, 2025, primarily due to capital expenditures of$607 million [125] - Net cash used in financing activities was $690 million during the three months ended February 28, 2025, compared to a net cash provided of$0.2 billion for the same period in 2024 [127] Working Capital and Future Projections - The working capital deficit increased to $8.6 billion as of February 28, 2025, compared to$8.2 billion as of November 30, 2024, primarily due to an increase in customer deposits [122] - The company operates with a substantial working capital deficit, mainly due to advance passenger ticket receipts that remain a current liability until the sailing date [122] - Future export credit facilities at February 28, 2025, are projected to be $0.7 billion in 2025, increasing to$3.1 billion thereafter [129] - The company plans to use existing liquidity and future cash flows from operations to fund cash requirements, including capital expenditures not funded by export credit facilities [128] Cost Management - Fuel cost per metric ton consumed decreased to $643 in 2025 from$686 in 2024, reflecting lower fuel prices [95] - The company anticipates a $46 million impact in 2024 due to the EU Emissions Trading System, affecting 40% of emissions under the operational scope [94]