Viking Holdings has today reported financial results for the second quarter ended June 30, 2024.

Key Highlights

• Total revenue for the second quarter of 2024 increased 9.1%, or $132.5 million compared to the same period in 2023.
• Adjusted Gross Margin increased 9.5% compared to the same period in 2023, resulting in a Net Yield of $562.
• Adjusted EBITDA increased 11.6% compared to the same period in 2023.
• Net Leverage improved from 3.4x as of March 31, 2024 to 3.0x as of June 30, 2024.
• As of August 11, 2024, for the 2024 and 2025 seasons, Viking had sold 95% and 55%, respectively, of its Capacity Passenger Cruise Days for its Core Products.

 

“We are pleased to report that we have already sold 95% and 55% of the capacity PCDs for our Core Products for the 2024 and 2025 seasons, respectively,” said Torstein Hagen, Chairman and CEO of Viking. “Our latest Advance Bookings metrics give us confidence that our core consumer demographic continues to show resiliency, prioritizing travel and actively seeking enriching, memorable experiences. We are increasing our share of the luxury leisure travel market through capacity growth while maintaining an unparalleled offering with great value for our guests. We believe that our clear focus on our core consumer demographic and our product is the essence of our brand promise and the cornerstone of our success.”

Second Quarter 2024 Consolidated Results

During the second quarter of 2024, Capacity PCDs increased by 3.1% over the same period in 2023 and Occupancy was 94.3%.

Total revenue for the second quarter of 2024 was $1,587.3 million, an increase of $132.5 million, or 9.1% over the same period in 2023 mainly driven by higher revenue per PCD and an increase in the size of the Company’s fleet in 2024 compared to 2023.

Gross margin for the second quarter of 2024 was $657.0 million, an increase of $89.7 million, or 15.8%, over the same period in 2023 and Adjusted Gross Margin for the second quarter of 2024 was $1,037.7 million, an increase of $90.4 million, or 9.5%, over the same period in 2023. Net Yield was $562 for the second quarter, up 6.6% year-over year.

Vessel operating expenses and vessel operating expenses excluding fuel for the second quarter of 2024 were $329.0 million and $284.1 million, respectively. Compared to the same period in 2023, vessel operating expenses increased $4.1 million, or 1.3%, and vessel operating expenses excluding fuel increased $3.0 million, or 1.1% mainly driven by the increase in the size of the Company’s fleet in 2024 compared to 2023.

Net income for the second quarter of 2024 was $155.8 million compared to $190.1 million for the same period in 2023. The net income for the second quarter of 2024 includes a loss of $123.0 million from the revaluation of warrants issued by the Company due to stock price appreciation. It also includes a loss of $65.8 million related to the net impact of the Private Placement derivative (loss) gain and interest expense related to the Company’s Series C Preference Shares. In comparison, the second quarter of 2023 includes a gain of $3.4 million from the impact of the Series C Preference Shares. The Company’s Series C Preference Shares converted into ordinary shares immediately prior to the consummation of the Company’s IPO. The second quarter of 2024 is the final quarterly period for which the financial results will include Private Placement derivative (loss) gain and interest expense related to the Series C Preference Shares. Excluding the impact of these items – the majority of which are non-cash – net income for the period was $344.6 million.

Adjusted EBITDA increased by $51.3 million compared to the second quarter of 2023. The increase in Adjusted EBITDA was mainly driven by higher revenue per PCD and higher Capacity PCDs.

“We are delighted to share our second quarter results which include a Net Yield growth of 6.6% over the prior year on a 3.1% increase in capacity,” said Leah Talactac, CFO of Viking. “Looking ahead, it is encouraging to see demand trends further supporting our bookings for next year. These are a testament to the strength of the Viking brand, the financial strength of our customer and our nimble and proactive sales and management team.”

Update on Operating Capacity and Bookings

For the company’s Core Products, operating capacity is 5% higher for the 2024 season in comparison to the 2023 season and 12% higher for the 2025 season in comparison to the 2024 season.

As of August 11, 2024, for  Core Products, and for the 2024 and 2025 seasons, the company said it had sold 95% and 55%, respectively, of Capacity PCDs and had $4,642 million and $3,442 million, respectively, of Advance Bookings. Advance Bookings were 14% and 20% higher in comparison to the 2023 and 2024 seasons, respectively, at the same point in time. Advance Bookings per PCD for the 2024 season was $731, 8% higher than the 2023 season at the same point in time, and Advance Bookings per PCD for the 2025 season was $833, 10% higher than the 2024 season at the same point in time.

Balance Sheet and Liquidity

As of June 30, 2024:

• The Company had $1.8 billion in cash and cash equivalents.
• The scheduled principal payments for the remainder of 2024 and 2025 were $101.0 million and $459.3 million, respectively.
• Deferred revenue was $3.8 billion.