FTSE 250 movers: Carnival sails on; IDS fails to deliver

Mon 27 Mar 2023

LONDON (SHARECAST) - (Sharecast News) - FTSE 250: 18,621.71, +0.69% at 1328 GMT.
Shares in cruise line operator Carnival surged on Monday after the company reported a smaller-than-expected first-quarter loss and beat revenue forecasts, driven by robust demand for leisure travel and on-board spending.

Carnival also benefited from easing of on-board Covid-19 protocols that ensured strong spending in casinos and spas. Chuef executive Josh Weinstein said the company was well booked for the remainder of the year at higher prices.

Revenue rose to $4.43bn from $1.62bn, beating estimates of $4.33bn.

Total customer deposits reached a first quarter record of $5.7bn as at 28 February, surpassing the previous first quarter record of $4.9b at the end of February 2019 by 16%.

Cash from operations turned positive in the period, with Carnival saying it expected continued growth in cash from operations to be the driver for paying down debt over time.

It ended the first quarter of 2023 with $8.1bn of liquidity.

"In the first quarter we outperformed our guidance on all measures," Weinstein added.

"We achieved record first quarter net per diems, exceeding the high end of our guidance, driven by improving ticket prices and sustained growth in onboard revenue, while delivering an additional seven points of occupancy on higher capacity compared to the prior quarter.

"We are enjoying a phenomenal wave season, achieving our highest ever quarterly booking volumes and breaking records in both North America and Europe."

Weinstein said the company's strong performance had extended into March, with the board expecting the favourable trend to continue based on the success of its efforts to drive demand.

"We remain focused on executing our overarching strategy of driving net yield growth, while maintaining our industry-leading cost base.

"With adjusted free cash flow for the year expected to be positive, our revolver renewal behind us, more committed export credit financings in hand, a reduced capex profile going forward and over $8bn of liquidity, we believe we are well positioned to pay down near term debt maturities from excess liquidity and therefore have no intention to sell equity, except in connection with our advantageous and non-dilutive stock swap programme."

Royal Mail owner International Distribution Services was the biggest loser on the FTSE 250 after JPMorgan slashed its price target on the shares to 250p from 285p.

FTSE 250 - Risers

Harbour Energy (HBR) 256.30p 4.53%
IWG (IWG) 150.65p 4.33%
Wetherspoon (J.D.) (JDW) 686.50p 4.02%
Aston Martin Lagonda Global Holdings (AML) 221.30p 3.99%
Caledonia Investments (CLDN) 3,470.00p 3.58%
Carnival (CCL) 675.60p 3.52%
Darktrace (DARK) 270.50p 3.01%
National Express Group (NEX) 121.00p 2.98%
Man Group (EMG) 244.60p 2.95%
TI Fluid Systems (TIFS) 99.90p 2.88%

FTSE 250 - Fallers

International Distributions Services (IDS) 218.70p -5.08%
Clarkson (CKN) 3,090.00p -2.68%
Centamin (DI) (CEY) 101.00p -2.37%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 426.00p -2.07%
Bakkavor Group (BAKK) 106.40p -1.85%
Pacific Horizon Inv Trust (PHI) 574.00p -1.54%
Inchcape (INCH) 720.00p -1.37%
Quilter (QLT) 82.18p -1.34%
Barr (A.G.) (BAG) 536.00p -1.29%
Templeton Emerging Markets Inv Trust (TEM) 147.40p -1.21%
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