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Cruise operator Carnival has been attacked for the past year as the pandemic has left its ships sitting idling. The group earned an operating loss of $ 8.9 billion (£ 6.4 billion) in 2020 and also reported an operating loss of $ 1.5 billion in the three months to February 28, 2021.
Making sure it has still proven to be an expensive business: Carnival’s average monthly cash burns reached $ 500 million in the first quarter of this year, and guide that this will increase to $ 600 million during the first quarter. May.
In order to maintain his head over water, the group has been forced to raise $ 23.6 billion through dilutive debt and equity offers since the beginning of this crisis. With $ 11.5 billion in cash and short-term investments, he says he now has enough liquidity for at least the next year.
In this context, non-executive director Randall Weisenburger recently sold more than $ 17.5 million worth of shares on the New York Stock Exchange (NYSE), where Carnival has a double listing, reducing its stake by 46%. He unloaded the shares in three major tranches at prices above $ 27, slightly above the current US $ 26 Carnival price.
No reason was given for this major elimination, and it marks a complete change from just over a year ago, when Weisenburger took advantage of Carnival’s low level of “Crown Crunch” and bought shares worth $ 10 million. of dollars at a minimum price of $ 8 each. .
It also disagrees with the dominant market sentiment. As the vaccine continues to develop, investors, including the Reddit brigade, are increasingly optimistic that Carnival will soon be able to set sail. Its shares have risen one-fifth so far this year in London and more than a quarter in New York, although they remain below pre-pandemic levels.
Six of Carnival’s nine brands are expected to resume limited cruise operations for the summer and, if cumulative advanced reserves for next year are ahead of pre-crisis levels, this suggests that there is accumulated demand.
But the all-important U.S. market remains stagnant, as restrictions imposed by the U.S. Centers for Disease Control and Prevention (CDC) make shipping from U.S. ports effectively uninterrupted until November.
Still, demand for cruises will eventually pick up, though it’s likely to be at a slower pace than air travel, and Carnival is the world’s largest cruise line operator. While it has a dizzying net debt of $ 21 billion, it may be worth clinging to the 1,531p shares to overcome the momentum of the pandemic recovery. Move to hold.
As Covid-19 spread from region to region last spring, production studios closed and TV advertisers began to cut their budgets in the face of countless economic chaos.
For the multimedia giant FTSE 100 ITV, the end result was a “challenging” year. The group revealed last month that sales fell 15.9% to £ 2.8 million over the twelve months ending December 31, while operating profits fell a third to 325 pounds. millions of pounds sterling.
In turn, the group reinforced the tough measures it had taken in 2020 as it anticipated the current year. It expects to achieve approximately £ 100 million in savings annually between 2019 and 2022, compared to previous estimates of £ 55-60 million. In 2021 alone, ITV expects a saving of £ 30 million.
But despite its pandemic-induced hardships, improvements were evident as restrictions began to wane during the summer months. This year, the group said advertising revenue it is expected to increase by 60-75 percent in April, with most programs already back in production.
ITV’s annual figures came out a day after the UK aired Oprah Winfrey’s interview with the Duke and Duchess of Sussex. The long-awaited broadcast, which reportedly pushed back £ 1bn, garnered an average audience of £ 11m, marked by lucrative advertising space.
Against a cheerful but still uncertain backdrop, in which streaming the giants are only expanding their influence, achieving these exclusive television rights can become an increasingly vital weapon in ITV’s armory.
In any case, non-executive director Duncan Painter seems confident in what’s to come. It bought 82,087 shares at £ 1.21 per piece on April 12, for a total of £ 99,006. Painter was appointed in May 2018 and is part of the group’s remuneration committee.
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