Viking Holdings Ltd today reported financial results for the third quarter ended September 30, 2024.

Key Highlights

• Total revenue for the third quarter of 2024 increased 11.4%, or $171.9 million compared to the same period in 2023.
• Gross margin increased 18.0% and Adjusted Gross Margin increased 12.0% compared to the same period in 2023, resulting in a Net Yield of $576.
• Adjusted EBITDA increased 15.3% compared to the same period in 2023.
• Diluted EPS was $0.86 and Adjusted EPS was $0.89.
• Net Leverage improved from 3.0x as of June 30, 2024 to 2.4x as of September 30, 2024.
• As of November 3, 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, Chairman and CEO of Viking. “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 capitalizing on our own ability to generate demand fueled by our distinctive and well-defined product, strong brand recognition, effective cross-selling practices, and a singular sales and marketing approach.”

Third Quarter 2024 Consolidated Results

During the third quarter of 2024, Capacity PCDs increased by 1.9% over the same period in 2023. Occupancy for the third quarter of 2024 was 94.0%.

Total revenue for the third quarter of 2024 was $1,678.7 million, an increase of $171.9 million, or 11.4% over the same period in 2023 mainly driven by higher revenue per PCD in 2024 compared to 2023.

Gross margin for the third quarter of 2024 was $717.8 million, an increase of $109.3 million, or 18.0%, over the same period in 2023 and Adjusted Gross Margin for the third quarter of 2024 was $1,098.9 million, an increase of $118.1 million, or 12.0%, over the same period in 2023. Net Yield was $576 for the third quarter, up 11.0% year-over year.

For the third quarter of 2024, vessel operating expenses were $329.2 million and vessel operating expenses excluding fuel were $284.8 million. Compared to the same period in 2023, vessel operating expenses increased $11.8 million, or 3.7%, and vessel operating expenses excluding fuel increased $12.1 million, 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 for the third quarter of 2024 was $374.8 million compared to a net loss of $1,238.2 million for the same period in 2023. The net income for the third quarter of 2024 includes a loss of $18.6 million from the revaluation of warrants issued by the Company due to stock price appreciation. In comparison, the third quarter of 2023 includes a loss of $1,518.5 million from the impact of the Series C Preference Shares and an additional $72.7 million loss due to the revaluation of warrants issued by the Company. 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 was the final quarterly period for which the financial results included Private Placement derivative loss and interest expense related to the Series C Preference Shares. Adjusted Net Income attributable to Viking Holdings Ltd for the third quarter of 2024 was $393.6 million.

Adjusted EBITDA increased by $73.6 million compared to the third quarter of 2023. The increase in Adjusted EBITDA was mainly driven by higher revenue per PCD.

Diluted EPS was $0.86 and Adjusted EPS was $0.89 for the third quarter of 2024.

“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, CFO of Viking. “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.”

Update on Operating Capacity and Bookings

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

As of November 3, 2024, for company Core Products, the company said it had sold 95% of its Capacity PCDs for the 2024 season and 70% for the 2025 season. The company said it had $4,633 million of Advance Bookings for the 2024 season, 14% higher than the 2023 season at the same point in time; and had $4,329 million 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, 8% higher than the 2023 season at the same point in time, and Advance Bookings per PCD for the 2025 season was $820, 7% higher than the 2024 season at the same point in time.