Viking Holdings has reported that total revenue for the third quarter of 2024 was $1,678.7 mill, an increase of 11.4%, or $171.9 mill, compared to the same period in 2023.
The gross margin increased by 18% to $717.8 mill and adjusted gross margin increased 12% to $1,098.9 mill, compared to 3Q23, resulting in a net yield of $576, while adjusted EBITDA increased 15.3%.
Diluted EPS was $0.86 and adjusted EPS was $0.89.
Net Leverage improved from 3.0x as of 30th June, 2024 to 2.4x as of 30th September, 2024.
As of 3rd November, 2024, for its core products, Viking had sold 95% of its capacity passenger cruise days for the 2024 season and 70% for the 2025 season.
“The strength of our one Viking brand and our loyal guests are two key factors that drove our impressive third quarter financial results, positioning us for what looks to be a strong 2024,” said Torstein Hagen, Viking’s Chairman and CEO (pictured). “With our capacity sold for 2024, our sales and marketing focus has shifted to the upcoming 2025 season and beyond.
“As we continue to expand our fleet in the coming months and years, we are capitalising on our own ability to generate demand fuelled by our distinctive and well-defined product, strong brand recognition, effective cross-selling practices, and a singular sales and marketing approach,” he said.
For 3Q24, vessel operating expenses were $329.2 mill and vessel operating expenses, excluding fuel were $284.8 mill. Compared to the same period in 2023, vessel opex increased by $11.8 mill, or 3.7%, and vessel opex, excluding fuel increased $12.1 mill, or 4.4%, mainly driven by maintenance and repair costs and the increase in the size of the company’s fleet in 2024, compared to 2023.
Net income was $374.8 mill, compared to a net loss of $1,238.2 mill for 3Q23. The 3Q24 net income included a loss of $18.6 mill from the revaluation of warrants issued by the company, due to stock price appreciation.
In comparison, the 2023 quarter included a loss of $1,518.5 mill from the impact of the series C preference shares and an additional $72.7 mill loss, due to the revaluation of warrants issued by the company.
The company’s preference shares were converted into ordinary shares immediately ahead of the IPO’s consummation.
Adjusted net income for the third quarter was $393.6 mill.
“We have already sold 70% of the capacity PCDs for our core products for 2025, with both volume and rates exceeding those for the 2024 season at the same point in time. As we continue to deliver strong financial results, we remain equally committed to providing unforgettable experiences for our guests,” said Leah Talactac, Viking’s CFO.
“Our focus on excellence creates lasting memories that inspire our guests to return and sail with us time and again. In addition, our efficiently designed ships lead to strong margins. This balance is key to our long-term success and sustainable growth,” she said.
For the core products, operating capacity was 5% higher for the 2024 season, compared to 2023 and 12% higher for the 2025 season, compared to this year.
Viking has $4,633 mill of advance bookings for the 2024 season, 14% higher than the 2023 season at the same point in time; and also $4,329 mill of advance bookings for the 2025 season, 26% higher than the 2024 season at the same point in time.
Advance bookings per PCD for the 2024 season was $727, some 8% higher than the 2023 season at the same point in time, and advance bookings per PCD for the 2025 season was $820, around 7% higher than the 2024 season at the same time.
As of 30th September, 2024, the company had $2.4 bill in cash and cash equivalents and an undrawn revolver facility of $375 mill.
The scheduled principal payments were $52.7 mill for the remainder of 2024 and $461.9 mill for next year. The deferred revenue was $4 bill.
In October, 2024, the company took delivery of the ‘Viking Sobek’, a river vessel that will operate in Egypt.
Viking also exercised its options for ship No 19 and ship 20, which are both scheduled for delivery in 2030 and are subject to certain financing and other conditions and signed option agreements for four more ocean ships, two of which have an exercise date of 30th October, 2025, for delivery in 2031 and two of which have an exercise date of 31st July, 2026, for delivery in 2032.
Based on the firm orderbook, the company expects to take delivery of one ocean ship later this year.
