Finnish based Viking Line Group first quarter 2025 sales amounted to €87.3 mill, compare to € 93.2 mill in 1Q24.
Significant uncertainty prevailed as a result of the economic downturn in traffic in recent years, which has negatively affected customer consumption patterns.
Uncertainty has also been due to the current geopolitical situation and its potential impact mainly on energy prices. This uncertainty makes it difficult to predict passenger related market developments, the company said. The Board assessed that the result before taxes for 2025 will be in line with 2024.
President and CEO, Jan Hanses, said; “During the first quarter of the year, we achieved a result that is in line with our expectations, but weaker than the previous year. The main reason for this is that we docked two vessels during the period.
“Demand in our markets remains somewhat weak and is reflected in passenger volumes, although on board consumption is slightly stronger than last year. The weak economic development in our service area leads to continued cautiousness among consumers.
“We expect improved demand during the second quarter, although this improvement may be shifted towards the latter part of the quarter. The strengthening of the Swedish krona at the end of March improves our conditions in the Swedish market.
“During the quarter, ‘Gabriella’ and ‘Viking XPRS’ were docked. ‘Gabriella’s’ docking was of a technical nature, while ‘Viking XPRS’s’ public areas have been refurbished in combination with a rebuild of the vessel’s shop area.
“Our joint venture company, Gotland Alandia Cruises, is affected by the same market conditions that apply to our other traffic, and the result has not yet fully met our expectations.
“From January, the result is also burdened by increased fairway fees in Finland, as a result of the halving of the fees that was carried out in connection with the implementation of the so-called sulphur directive being reversed. Furthermore, from the beginning of the year, increased ETS fees are also levied, which now correspond to 70% of a fully implemented emission trading system.
“Our operations are currently greatly affected by upcoming environmental standards, and we are subjected to a cost burden that in the medium term can only be partially mitigated through continued work with energy efficiency. The availability of alternative fuels for shipping remains poor.
“In summary, I can state that the first quarter of 2025 has been characterised by a relatively heavy docking programme and a challenging market situation, where we hope for a change for the upcoming high season,” he said.
The number of passengers travelling on the group’s wholly owned vessels in 1Q25 amounted to 767,353 (871,828 in 1Q24). The group had a total market share within the traffic area of around 31.2% (34.6%). The number of passengers on Birka Gotland amounted to 108,359 (14,975 for the period 20th-31st March, 2024).
Demand development during the first quarter was weak compared to the previous year. Passenger volumes between Finland and Sweden decreased, and the market between Finland and Estonia also saw a decline. Viking Line’s market share in traffic between Finland and Sweden increased, mainly thanks to ‘Viking Cinderella’ being put into traffic between Helsinki, Mariehamn, and Stockholm. In traffic between Finland and Estonia, the market share decreased slightly, which was due to ‘Viking XPRS’ being drydocked.
The group’s total cargo volumes amounted to 36,352 cargo units (32,993 in 1Q24) and the group’s cargo market share was estimated at 20.5% (17.4%).
Viking Line’s focus on long-term business relationships, traffic structure, and the implementation of the green corridor for cargo units and trade goods between Finland and Sweden has resulted in a very positive volume outcome, despite an otherwise declining market, it claimed.
The persistent geopolitical and political uncertainty has led to the expected growth not materialising in the international transport market within its area.
Consolidated sales decreased by 6.3% to EUR 87.3 M during the period January 1 – March 31, 2025 (EUR 93.2 M January 1 – March 31, 2024). Operating income amounted to EUR -18.0 M (EUR -10.4 M). Consolidated income before tax amounted to EUR -22.0 M (EUR -14.2 M).
The results for the beginning of the year were weak, reflecting the challenges faced. Despite this, improved demand was seen during the second quarter, especially towards the end of the period, which may contribute to positive development going forward. In addition, Easter fell in the second quarter of 2025, compared to the first quarter of 2024.
Passenger-related revenue decreased by 8.8% to €72.7 mill (€79.7 mill in 1Q24), while cargo sales increased by 11.7% to €14.2 mill (€12.7 mill).
The group’s long-term interest-bearing liabilities amounted to €120 mill on 31st March, 2025 (€141.1 mill). The group’s loans for financing ‘Viking Grace’ were fully repaid in January, 2025.
Cash and cash equivalents amounted to €26 mill at the end of March €65.7 mill).
