Carnival Corporation 4th Quarter Financials!

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Carnival Corporation & Carnival plc (ticker: CCL, exchange: New York
Stock Exchange) News Release - 12/18/2003

Carnival Corporation & plc Reports Fourth Quarter and Full Year
Earnings in Line With Previous Guidance

MIAMI, Dec 18, 2003
Carnival Corporation & plc (NYSE: CCL; LSE, NYSE: CUK) reported net
income of $205 million, or $0.26 Diluted EPS, on revenues of $1.82
billion for its fourth quarter ended November 30, 2003. This was in
line with the company's previous fourth quarter earnings per share
guidance of $0.24 to $0.28. Net income for the fourth quarter of 2002
was $191 million, or $0.33 Diluted EPS (pro forma Diluted EPS of
$0.29), on revenues of $1.04 billion. Earnings for last year's fourth
quarter included $0.03 per share ($0.02 pro forma) from a nonrecurring
income tax benefit from the company's Costa Cruises unit.

Net income for the year ended November 30, 2003 was $1.19 billion
($1.66 Diluted EPS) on revenues of $6.72 billion, compared to net
income of $1.02 billion ($1.73 Diluted EPS) on revenues of $4.38
billion for the same period in 2002.

Carnival Corporation and P&O Princess entered into a dual listed
company ("DLC") structure on April 17, 2003, which effectively made
Carnival Corporation and P&O Princess a single economic entity
("Carnival Corporation & plc" or the "company"). Also on that date,
P&O Princess changed its name to Carnival plc. For reporting purposes,
Carnival Corporation has accounted for the DLC transaction as an
acquisition of Carnival plc. Consolidated financial results for the
company for the fourth quarter of 2003 include the results of Carnival
Corporation and Carnival plc for the entire quarter. The twelve month
results include Carnival Corporation for the entire period and
Carnival plc from April 17, 2003.

Consolidated revenues for the fourth quarter of 2003 increased by $777
million compared to the fourth quarter of 2002 primarily due to the
inclusion of $675 million of Carnival plc revenues, an 18.0 percent
increase in Carnival Corporation standalone capacity, and a weaker
U.S. dollar, partially offset by lower cruise ticket prices. Operating
costs and selling, general and administrative expenses increased by
$622 million compared to the fourth quarter of 2002. Approximately
$532 million of the increase was due to the inclusion of Carnival plc,
and the remainder was primarily due to increased capacity and the
weaker U.S. dollar.

In the cruise industry, most companies, including Carnival Corporation
& plc, generally consider net revenue yields and net cruise costs (net
operating costs and selling, general and administrative expenses) per
available lower berth day to be the most meaningful measures of
operating performance. Given that the company's reported results for
2003 include the results of Carnival plc for only a portion of this
year and none of last year, the company believes that the most
meaningful presentation of these measures is on a pro forma basis,
which reflects the results of both Carnival Corporation and Carnival
plc for the entirety of both periods. The company has also presented
these measures on a gross and as reported basis.

Pro Forma Results

Pro forma net revenue yields for the fourth quarter of 2003 declined
4.1 percent compared to the prior year, which was in line with the
company's previous guidance in September of a decrease of between 4
and 6 percent. Pro forma gross revenue yields declined 4.6 percent.
Pro forma yields declined primarily because of lower cruise ticket
prices.

Pro forma net cruise costs per available lower berth day for the
fourth quarter of 2003 were down 3.5 percent compared to the same
period last year and in line with the company's previous guidance. Pro
forma gross cruise costs per available lower berth day decreased 4.3
percent compared to the prior year. During the fourth quarter of 2003,
the company realized synergies from the combination with P&O Princess,
as well as scale benefits from its 2003 capacity increase.

Reported Results

Reported net revenue yields declined 4.3 percent for the fourth
quarter of 2003 compared to the same quarter of 2002. Reported gross
revenue yields declined 2.0 percent. The decline in reported yields
was primarily due to lower cruise ticket prices. Net cruise costs per
available lower berth day increased 1.4 percent (3.3 percent gross)
compared to the fourth quarter of 2002 primarily because of the higher
operating costs of the Carnival plc brands.

"This year has been one of the most exciting in the company's history.
We emerge from 2003 a much different and stronger company than when we
began this year, despite it being one of the more challenging years
for the leisure industry. We completed a historic transaction through
the merger with P&O Princess, creating a true global vacation company.
We are confident that this merger will provide greater value for
shareholders of our combined company," said Carnival Corporation & plc
Chairman and CEO Micky Arison.

Arison also noted that the company introduced a record number of
cruise ships during the year, with seven new ships entering service in
2003, unprecedented in the cruise industry. He also pointed out that
the company increased its regular quarterly dividend in the fourth
quarter by 19 percent to 12.5 U.S. cents per share.

Earlier this month, the company completed the previously announced
sale of its A'ROSA brand name and the three A'ROSA riverboats to
Arkona AG, a German- based leisure travel supplier.

2004 Outlook

Looking forward to next year, Arison said, "I believe 2004 will be a
transforming year for our company. Our new ship deliveries line up
extremely well and are across five of our strongest brands. We
recently took delivery of the Costa Fortuna, the largest ship totally
dedicated to the European market. Cunard's Queen Mary 2 is expected to
enter service in mid-January 2004, and the Carnival Miracle, Holland
America Line's Westerdam, and Princess' Diamond Princess, Caribbean
Princess and Sapphire Princess are expected to enter service later in
the winter and spring, which should help bolster our seasonally strong
summer cruise programs."

Arison noted that at this time, occupancy percentages for 2004 advance
bookings are slightly behind last year at this time because of the
closer-in booking curve, with pricing at about the same levels as last
year. However, over the period of the last six weeks, company wide
booking levels have been running 33 percent higher than during the
same period last year and pricing during this period is running
slightly ahead of last year's levels. Given the strengthening booking
trends, and assuming a more stable geo-political environment, the
company presently expects pro forma net revenue yields for the full
year 2004 to increase in the range of 2 to 4 percent, which includes
some benefit from the currently weaker U.S. dollar.

Costs per available lower berth day for 2004 are expected to be flat,
compared to 2003 pro forma costs. Anticipated annual synergies of $100
million from the P&O Princess combination are expected to be achieved
for the full year 2004. However, also affecting these costs are the
weaker U.S. dollar and higher ship introductory costs.

The company also plans to make several significant investments in
2004, which will benefit future years, including Holland America's
highly acclaimed Signature of Excellence program, and a significantly
expanded television advertising campaign for the company's Carnival
Cruise Lines brand.

Based on current internal forecasts, the company is comfortable with
current consensus estimates for the year 2004.

Turning to the first quarter of 2004, the company expects that pro
forma net revenue yields will increase approximately 1 to 2 percent
compared to last year, partially due to the weaker U.S. dollar. Pro
forma net cruise costs per available lower berth day in the first
quarter of 2004 are expected to increase approximately 1 to 3 percent
also because of the weaker U.S. dollar, higher ship introductory costs
associated with the introduction of six new ships in the first half of
the year, and higher fuel costs. These increases are expected to be
partially offset by synergies from the combination with P&O Princess.
Based on these estimates, first quarter 2004 earnings per share are
expected to be in the range of $0.17 to $0.20 versus 2003 pro forma
first quarter earnings per share of $0.16 ($0.18 less a $0.02
nonrecurring gain from insurance settlements).

Also during the first quarter of 2004, the company will launch Cunard
Line's much-heralded Queen Mary 2, which at 150,000 tons will be the
largest passenger vessel ever constructed and already has become the
most aspirational ship in the world. Her Majesty The Queen will name
the ship at ceremonies in Southampton, England, on Jan. 8, 2004.

"This is a unique, one-of-a-kind vessel that will create tremendous
excitement in the cruise industry and should increase awareness of
cruise vacations, helping to spur demand," Arison said.

Carnival has scheduled a conference call with analysts at 10 a.m. EST
(15.00 London time) today to discuss its 2003 fourth quarter and full
year earnings. This call can be listened to live, and additional
information can be obtained, via Carnival Corporation & plc's Web
sites at www.carnivalcorp.com and www.carnivalplc.com.

Carnival Corporation & plc is the largest cruise vacation group in the
world, with a portfolio of 12 cruise brands in North America, Europe
and Australia, comprised of Carnival Cruise Lines, Holland America
Line, Princess Cruises, Seabourn Cruise Line, Windstar Cruises, AIDA,
Costa Cruises, Cunard Line, Ocean Village, P&O Cruises, Swan Hellenic,
and P&O Cruises Australia.

Together, these brands operate 71 ships totaling more than 113,000
lower berths with 12 new ships scheduled for delivery between now and
mid-2006. Carnival Corporation & plc also operates the leading tour
companies in Alaska and the Canadian Yukon, Holland America Tours and
Princess Tours. Traded on both the New York and London Stock
Exchanges, Carnival Corporation & plc is the only group in the world
to be included in both the S&P 500 and the FTSE 100 indices.

Cautionary note concerning factors that may affect future results

Some of the statements contained in this earnings release are
"forward- looking statements" that involve risks, uncertainties and
assumptions with respect to Carnival Corporation & plc, including some
statements concerning future results, plans, outlook, goals and other
events which have not yet occurred. You can find many, but not all, of
these statements by looking for words like "will," "may," "believes,"
"expects," "anticipates," "forecast," "future," "intends," "plans,"
and "estimates" and for similar expressions. Because forward-looking
statements involve risks and uncertainties, there are many factors
that could cause Carnival Corporation & plc's actual results,
performance or achievements to differ materially from those expressed
or implied in this announcement. Forward-looking statements include
those statements which may impact the forecasting of earnings per
share, net revenue yields, booking levels, pricing, occupancy,
operating, financing and tax costs, costs per available lower berth
day, estimates of ship depreciable lives and residual values, outlook
or business prospects. These factors include, but are not limited to,
the following: achievement of expected benefits from the DLC
transaction; risks associated with the DLC structure; risks associated
with the uncertainty of the tax status of the DLC structure; general
economic and business conditions, which may impact levels of
disposable income of consumers and the net revenue yields for cruise
brands of Carnival Corporation & plc; conditions in the cruise and
land-based vacation industries, including competition from other
cruise ship operators and providers of other vacation alternatives and
increases in capacity offered by cruise ship and land-based vacation
alternatives; the impact of operating internationally; the
international political and economic climate, armed conflicts,
terrorist attacks, availability of air service and other world events
and adverse publicity, and their impact on the demand for cruises;
accidents and other incidents at sea affecting the health, safety,
security and vacation satisfaction of passengers; the ability of
Carnival Corporation & plc to implement its shipbuilding programs and
brand strategies and to continue to expand its businesses worldwide;
the ability of Carnival Corporation & plc to attract and retain
shipboard crew and maintain good relations with employee unions; the
ability to obtain financing on terms that are favorable or consistent
with Carnival Corporation & plc's expectations; the impact of changes
in operating and financing costs, including changes in foreign
currency and interest rates and fuel, food, payroll, insurance and
security costs; changes in the tax, environmental, health, safety,
security and other regulatory regimes under which Carnival Corporation
& plc operates; continued availability of attractive port
destinations; the ability to successfully implement cost improvement
plans and to integrate business acquisitions; continuing financial
viability of Carnival Corporation & plc's travel agent distribution
system; weather patterns or natural disasters; and the ability of a
small group of shareholders to effectively control the outcome of
shareholder voting.

Forward-looking statements should not be relied upon as a prediction
of actual results. Subject to any continuing obligations under
applicable law or any relevant listing rules, Carnival Corporation &
plc expressly disclaims any obligation to disseminate, after the date
of this announcement, any updates or revisions to any such
forward-looking statements to reflect any change in expectations or
events, conditions or circumstances on which any such statements are
based.


CARNIVAL CORPORATION & PLC
CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended Twelve Months
Ended
November 30, November
30,
2003 (1) 2002 (2) 2003 (1)
2002 (2)
(in millions, except per share
data)
Revenues
Cruise
Passenger tickets $1,368 $ 793 $5,039
$3,346
Onboard and other 417 233 1,420
898
Other 32 14 259
139
1,817 1,040 6,718
4,383

Costs and Expenses
Operating
Cruise
Passenger tickets 274 149 1,021
658
Onboard and other 74 31 229
116
Payroll and related 224 118 744
458
Food 117 67 393
256
Other ship operating 373 206 1,237
734
Other 28 12 194
108
Total 1,090 583 3,818
2,330
Selling and administrative 284 169 932
609
Depreciation and
amortization 169 101 585
382
Impairment charge
20
1,543 853 5,335
3,341

Operating Income 274 187 1,383
1,042

Nonoperating (Expense) Income
Interest income 7 7 27
32
Interest expense, net
of capitalized interest (67) (24) (195)
(111)
Other income (expense), net 1 8
(4)
(60) (16) (160)
(83)
Income Before Income Taxes 214 171 1,223
959

Income Tax (Expense)
Benefit, Net (9) 20 (3) (29)
57 (3)

Net Income $205 $191 $1,194
$1,016

Earnings Per Share
Basic $0.26 $0.33 $1.66
$1.73
Diluted $0.26 $0.33 $1.66
$1.73


Dividends Per Share $0.125 $0.105 $0.44
$0.42

Weighted-Average Shares
Outstanding - Basic 798 587 718
587
Weighted-Average Shares
Outstanding - Diluted 802 588 724
588

(1) Commencing on April 17, 2003, the company's consolidated
statements of
operations include Carnival plc's results of operations.

(2) Reclassifications have been made to certain 2002 amounts to
conform to
the current period presentation.

(3) Includes a $17 million and $51 million income tax benefit in
the three
and twelve months ended November 30, 2002, respectively, from
Costa
Cruises resulting from an Italian investment tax law.


CARNIVAL CORPORATION & PLC
SELECTED STATISTICAL AND SEGMENT INFORMATION

Three Months Ended Twelve Months
Ended
November 30, November
30,
2003 (1) 2002 (2) 2003 (1)
2002 (2)
(in millions, except statistical
information)
STATISTICAL INFORMATION
Passengers carried 1,386,530 909,492 5,155,987
3,549,019
Available lower
berth days 9,929,108 5,593,687 33,309,785
21,435,828
Occupancy percentage 101.1% 102.1% 103.4%
105.2%

SEGMENT INFORMATION
Revenues
Cruise $1,785 $1,026 $6,459
$4,244
Other (3) 42 17 345
176
Intersegment elimination (10) (3) (86)
(37)
$1,817 $1,040 $6,718
$4,383
Operating expenses
Cruise $1,062 $571 $3,624
$2,222
Other (3) 38 15 280
145
Intersegment elimination (10) (3) (86)
(37)
$1,090 $583 $3,818
$2,330

Selling and
administrative expenses
Cruise $274 $158 $896
$577
Other (3) 10 11 36
32
$284 $169 $932
$609

Operating income (loss)
Cruise, excluding
impairment charge $286 $199 $1,371
$1,075
Cruise - impairment charge
(20)
Other (12) (12) 12
(13)
$274 $187 $1,383
$1,042

(1) Commencing on April 17, 2003, the company's statistical and
segment
information include Carnival plc's data.

(2) Reclassifications have been made to certain 2002 amounts to
conform to
the current period presentation.

(3) Other includes the company's tour operations (Holland America
Tours and Princess Tours) and its business-to-business travel
agency
(P&O Travel Ltd.).


CARNIVAL CORPORATION & PLC
HISTORICAL AND PRO FORMA GAAP RECONCILING INFORMATION

Historical and pro forma gross and net revenue yields were computed as
follows (1):

Historical Pro
forma(2)
Three Months Ended
November 30,
2003 2002
2002
(in millions, except ALBDs and
Yields)
Cruise revenues
Passenger tickets $1,368 $793
$1,222
Onboard and other 417 233
345
Gross cruise revenues 1,785 1,026
1,567
Less cruise costs
Passenger tickets (274) (149)
(251)
Onboard and other (74) (31)
(61)
Net cruise revenues $1,437 $846
$1,255
Available lower
berth days ("ALBDs")(3) 9,929,108 5,593,687
8,313,267

Gross revenue yields (4) $179.77 $183.44
$188.47
Net revenue yields (5) $144.72 $151.25
$150.98

Historical and pro forma gross and net cruise costs per ALBD were
computed as follows (1):

Historical Pro
forma(2)
Three Months Ended
November 30,
2003 2002
2002
(in millions, except ALBDs and costs
per ALBD)

Cruise operating expenses $1,062 $571
$914
Cruise selling and administrative expenses 274 158
254
Gross cruise costs 1,336 729
1,168
Less cruise costs included in net revenues
Passenger tickets (274) (149)
(251)
Onboard and other (74) (31)
(61)
Net cruise costs $988 $549
$856

ALBDs (3) 9,929,108 5,593,687
8,313,267
Gross cruise costs per ALBD (6) $134.49 $130.24
$140.50

Net cruise costs per ALBD (7) $99.44 $98.05
$103.01


NOTES TO HISTORICAL AND PRO FORMA GAAP RECONCILING INFORMATION

(1) Carnival Corporation & plc uses net cruise revenues per ALBD
("net
revenue yields"), and net cruise costs per ALBD as significant
non-
GAAP financial measures of its cruise segment financial
performance.
Carnival Corporation & plc believes that net revenue yields
are
commonly used in the cruise industry to measure a company's
pricing
performance. This measure is also used for revenue management
purposes. In calculating net revenue yields, the company uses
net
cruise revenues rather than gross cruise revenues. Carnival
Corporation & plc believes that "net cruise revenues" is a
more
meaningful measure in determining revenue yield than gross
cruise
revenues because it reflects the cruise revenues earned by the
company
net of its most significant variable costs (travel agent
commissions,
cost of air transportation and certain other variable direct
costs
associated with onboard revenues). Substantially all of the
remaining
cruise costs are largely fixed once the company's ship
capacity levels
have been determined.

Net cruise costs per ALBD are the most significant measure
used by the
company to monitor its ability to control costs. In
calculating this
measure, the company deducts the same variable costs as
described
above, which are included in the calculation of net cruise
revenues.
This is done to avoid duplicating these variable costs in the
non-GAAP
financial measures described above because these variable
costs are
directly associated with the revenues earned by the company.

(2) The pro forma information gives pro forma effect to the DLC
transaction between Carnival Corporation and Carnival plc,
which was
completed on April 17, 2003. Management has prepared the pro
forma
information based upon the companies' historical financial
information
and, accordingly, the above information should be read in
conjunction
with the companies' historical financial statements, as well
as pro
forma information included in the companies' joint Current
Reports on
Form 8-K filed on May 29, 2003 and September 18, 2003.

The DLC transaction has been accounted for as an acquisition
of
Carnival plc by Carnival Corporation, using the purchase
method of
accounting. The Carnival plc accounting policies have been
conformed
to Carnival Corporation's policies. Carnival plc's reporting
period
has been changed to the Carnival Corporation reporting period
and the
information presented above covers the same periods of time
for both
companies.

The above pro forma information has been prepared as if the
DLC
transaction had occurred on December 1, 2001 and has not been
adjusted
to reflect any net transaction benefits. In addition, it
excludes the
costs related to the terminated Royal Caribbean transaction
and the
completion of the DLC transaction with Carnival Corporation,
which
were expensed by Carnival plc prior to April 17, 2003.
Finally, the
pro forma information does not purport to represent what the
results
of operations actually could have been if the DLC transaction
had
occurred on December 1, 2001 or what those results will be for
any
future periods.

(3) Represents the total passenger capacity for the period,
assuming two
passengers per cabin, that the company offers for sale, which
is
computed by multiplying passenger capacity by
revenue-producing ship
operating days in the period.

(4) Represent gross cruise revenues divided by ALBDs.

(5) Represent net cruise revenues divided by ALBDs.

(6) Represent gross cruise costs divided by ALBDs.

(7) Represent net cruise costs divided by ALBDs.

(8) In this earnings release, Carnival Corporation & plc has not
provided
future gross revenue yields or gross cruise costs per ALBD
because it
is unable to provide reconciliations of forecasted net cruise
revenues
to forecasted gross cruise revenues or forecasted net cruise
costs to
forecasted cruise operating expenses without unreasonable
effort. The
reconciliations would require Carnival Corporation & plc to
forecast,
with reasonable accuracy, the amount of air and other
transportation
costs that its forecasted cruise passengers would elect to
purchase
from the company (the "air/sea mix"). Since the forecasting
of future
air/sea mix involves several significant variables and the
revenues
from the sale of air and other transportation approximate the
costs of
providing that transportation, management focuses primarily on
forecasts of net cruise revenues and costs rather than gross
cruise
revenues and costs. This does not impact, in any material
respect, the
company's ability to forecast its future results, as any
variation in
the air/sea mix has no material impact on the company's
forecasted net
cruise revenues or forecasted net cruise costs.

SOURCE Carnival Corporation & plc