RE: Royal v Carnival22 Apr 2024 11:02
On an approx. like for like basis, Royal and CCL borrowed approx. the same as a % compared to their revenue/nett worth etc.
So obviously in pure cash terms CCL's borrowing was more than Royals.
However as the article says, Royal makes more money per share than CCL does, and that's because of the streamlined nature of Royal vs the massive Overhead in CCL.
Royal are pushing the boundaries of ship building, bigger is better, cram on more guests, cram in more add-ons, increase revenue, therefore increase the profit to share ratios even more.
There is one big thing however that is obvious, Royal on a like for like basis are paying down their debt quicker, and again this comes back to the fact that they are making money money per share.
Unfortunately I couldn't buy Royal, as neither of my providers offered it, but CCL, will eventually win the race in my eyes.
The Brand exposures are much bigger and the market share much broader. In the end, this will help CCL when things become Business as Usual. BUT, CCL has to streamline, which I've said many times.
Whether that is by combining brands, which obviously would cost a lot of money to implement initially as they would have to repaint the ships etc. as well as all the stuff on the ships, or streamline the financial reporting, and therefore the management structures by combining the brands purely from a paper perspective, either way, they have to get their earning per share up.