Viking Holdings Ltd. has unveiled its financial performance for the third quarter of 2024, highlighting a significant growth trajectory across multiple key metrics.
Key Financial Highlights:
- Viking saw a robust 11.4% year-over-year growth in total revenue for Q3 2024, reaching $1.68 billion, up by $171.9 million from the same period in 2023.
- Gross margin soared 18.0%, with an Adjusted Gross Margin increase of 12.0%. The Net Yield for the quarter was reported at $576, reflecting an 11.0% improvement from the previous year.
- Adjusted EBITDA showed a healthy increase of 15.3%, signaling operational strength.
- Diluted earnings per share (EPS) were $0.86, while Adjusted EPS stood at $0.89.
- The company improved its Net Leverage ratio from 3.0x at the end of June 2024 to 2.4x as of September 30, 2024.
- Viking’s advance bookings remain strong, with 95% of its 2024 Capacity Passenger Cruise Days (PCDs) sold by November 3, 2024, and 70% of the 2025 season already booked.
CEO’s Statement:
Torstein Hagen, Viking’s Chairman and CEO, attributed the quarter’s success to the strength of the Viking brand and the company’s loyal customer base. He emphasized that with the 2024 season nearly fully booked, Viking is shifting its focus to the 2025 season and beyond. As the company expands its fleet, it continues to leverage its strong brand presence, customer loyalty, and effective sales strategies to drive demand.
Q3 2024 Operational Performance:
- The company’s Capacity PCDs grew by 1.9% compared to Q3 2023, with an impressive 94.0% occupancy rate for the quarter.
- Vessel operating expenses amounted to $329.2 million, reflecting a 3.7% increase from the previous year. Excluding fuel costs, operating expenses rose by 4.4%, driven by higher maintenance costs and fleet expansion.
- Net income for the quarter was $374.8 million, a significant turnaround from a net loss of $1.24 billion in Q3 2023. The 2024 result was partially impacted by a $18.6 million loss related to the revaluation of issued warrants.
- Adjusted Net Income for Q3 2024 reached $393.6 million, a substantial improvement from the previous year.
Strong Forward Bookings and Fleet Expansion:
Looking ahead, Viking’s operational capacity for 2024 is set to increase by 5% compared to 2023, with a further 12% increase projected for 2025. As of early November, the company had secured 95% of its 2024 capacity, along with 70% of the 2025 season.
Advance bookings for the 2024 season reached $4.63 billion, a 14% increase compared to the same time in 2023, while bookings for 2025 were at $4.33 billion, reflecting a 26% growth from the previous year. Additionally, bookings per PCD for 2024 were $727, marking an 8% increase from the previous year, while the 2025 per PCD rate stood at $820, up 7% from 2024.
