Carnival Corp sees strong annual profit, resumes dividend as bookings rise

Shares in paragraph 2, adds details in paragraphs 6, analyst comment in paragraph 7

By Anuja Bharat Mistry

Dec 19 (Reuters) - Cruise operator Carnival Corp CCL.N forecast strong annual profit after beating quarterly earnings estimates on Friday, banking on higher ticket prices and resilient demand for its cruise itineraries and recreational experiences.

Shares of Carnival were up as much as 10.2%. Carnival said it plans to unify its dual-listing structure into a single company, listed solely on the New York Stock Exchange.

The company also reinstated its dividend payouts after suspending them following the impact from the pandemic. It declared an initial dividend of 15 cents per share with a record date of February 13, 2026.

Affluent consumers have shrugged off macroeconomic challenges and maintained discretionary spending, fueling growth across entertainment, hotels and leisure travel.

The company, which said in September its targeted investment efforts were helping take share from land-based activities such as resorts and hotels, has also been leaning into AI to improve in areas such as marketing.

It is also investing in private islands, such as the recently opened Celebration Key, to attract travelers, with more destinations such as RelaxAway and Half Moon Cay planned for 2026.

"CCL's winning combination of affordable packages to popular destinations has withstood consumer health and economic uncertainty over the past few months," said Kim Noland, analyst with Gimme Credit.

Carnival said its booking trends rose over the last three months, hinting at a strong momentum heading into the wave season, a period of cruise promotions that starts right after winter holidays and lasts until the end of March.

"Strong booking volumes continued from Black Friday through Cyber Monday, even outpacing prior year's robust levels, which is a favorable indicator for wave season," said CEO Josh Weinstein.

The company expects full-year adjusted earnings per share to be up to $2.48, compared with analysts' estimates of $2.43 according to data compiled by LSEG.

Its fourth-quarter adjusted profit was 34 cents per share, above analysts' estimates of 25 cents.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Krishna Chandra Eluri)

((AnujaBharat.Mistry@thomsonreuters.com))