Carnival plc(CUK) - 2025 Q1 - Quarterly Report

Revenue Growth - Passenger ticket revenues increased by $216 million, or 6.0%, to $3.8 billion in 2025 from $3.6 billion in 2024[99] - Onboard and other revenues increased by $189 million, or 11%, to $2.0 billion in 2025 from $1.8 billion in 2024[100] - The North America segment's passenger ticket revenues increased by $159 million, or 7.0%, to $2.4 billion in 2025 from $2.3 billion in 2024[101] - The Europe segment's passenger ticket revenues increased by $52 million, or 3.8%, to $1.4 billion in 2025[103] Operating Performance - Consolidated operating income increased by $267 million to $543 million in 2025 from $276 million in 2024[116] - Occupancy percentage increased to 103% in 2025 from 102% in 2024[95] - The company experienced a 2.5% capacity increase in Available Lower Berth Days (ALBDs) from 23.0 million in 2024 to 23.6 million in 2025[95] Financial Expenses - 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] Cash Flow and Liquidity - As of February 28, 2025, the company had $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] - 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] - 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 for ship improvements and port developments[125] - During the three months ended February 28, 2025, net cash used in financing activities was $690 million, compared to a net cash provided of $0.2 billion for the same period in 2024[127] Future Projections - 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] - Future export credit facilities at February 28, 2025, are projected to be $0.7 billion in 2025, increasing to $3.1 billion thereafter[129] Debt Composition - As of February 28, 2025, the company maintained a fixed rate debt composition of 61%, with 23% in EUR fixed rate and 7% in floating rate[131] - The company plans to use existing liquidity and future cash flows from operations to fund cash requirements, including capital expenditures not covered by export credit facilities[128] - The company is not a party to any off-balance sheet arrangements that could materially affect its consolidated financial statements[123]