Carnival 2Q13 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“We announced today that our board member, Arnold Donald, will become CEO starting next month.”

“My experiences in operating businesses and as a board member certainly gives me the appreciation that it will be very necessary for me to spend some time getting into much greater depth on the company’s operations, finance, marketing and strategy, but I am optimistic for an accelerated onboarding process and being able to make a contribution as CEO relatively quickly, thanks to having the advantage of some level of understanding of the company from my governance role in many years of close observation.”

“For the third quarter, on a fleet-wide basis at the present time, occupancies are slightly behind last year at slightly lower prices.”

“our advisers are saying that the recovery will be gradual, and it will take 2 to 3 years for the Carnival brand to fully recover.”

“consumer perception of the brand has significantly improved since the incidents back in March, and we expect this trend to continue once confidence builds back in the brand.”

“when you’re carrying 4.5 million passengers, most of them coming from the United States, meaning that upwards of 1 in 3 passengers that go on a cruise in the United States go on a Carnival Cruise, and 99% of them are coming back happy and telling their friends and getting on Facebook and Twitter and then telling people what a great time they’ve had. That is powerful, 90,000 folks every single week coming off those ships in the U.S. and talking about the great experience and right now, the great value they got as well.”

“our consultants have basically used an analogy of 2 other non- — Greg, non-industry events, and we’re tracking the same way. In terms of consumer perception, we’re tracking the same way, which was a significant fall off in brand perception and then a gradual recovery until it’s 3 years out. So their view is that while we’re a very different industry, it’s likely that we will follow the same pattern”

“as you know, there’s a difference between being on the board and being in operations.”

“we’re talking about a number of different brands all doing — making changes. And I’m talking about anticipating — increasing their spend in the marketing area. A lot of it is going to be focused on travel agents and travel agent co-op marketing, more trade advertising. A lot of it is social media and web-based marketing and is also for the consideration to going back and doing more TV. So it’s a variety of these things.”

“things seem to be — I think maybe it’s consumer confidence strengthening or positive things that are going on. And so we’re very encouraged by what we’re seeing in Europe right now.”