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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
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Leisure, gaming and gambling

Carnival heading for calmer seas, though losses still expected

Carnival PLC will lower the gangplank on its first quarter update on Monday 27 March, following what has been not been a cruise for the cruise industry over the past three years.

The shares are down 82% from February 2020, though since last summer the share price chart has resembled more of a choppy sea than the face of a giant wave, amid a stop-start recovery in overseas travel.

October saw a 30-year low in the shares but "indications suggest we may well have found a short-term base," said analyst Michael Hewson at CMC Markets.

The last quarter of 2022 saw a smaller-than-expected loss of $0.85 per share, even as revenues fell short of expectations.

"Investors appeared to be encouraged by a more optimistic outlook for the upcoming financial year," said Hewson.

Guidance is for Q1 capacity growth of 3.7%, with an expectation that Q1 losses will halve to around US$800mln.

"The hope is that 2023 is the year that annual revenues return to the levels they were in 2019, with expectations this current year of $20.99bn," notes the analyst.

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