Viking Holdings Ltd (“Viking”) (NYSE: VIK) announced its financial results for the third quarter ending September 30, 2024, showcasing significant growth and positive momentum across key metrics.
Key Financial Highlights
- Revenue Growth: Total revenue for Q3 2024 increased by 11.4% to $1,678.7 million, driven by higher revenue per Passenger Cruise Day (PCD).
- Improved Margins: Gross margin rose 18.0% to $717.8 million, while Adjusted Gross Margin increased 12.0% to $1,098.9 million. Net Yield reached $576, up 11.0% year-over-year.
- Earnings Growth: Adjusted EBITDA grew by 15.3%, while Adjusted Net Income reached $393.6 million. Diluted EPS was $0.86, with Adjusted EPS at $0.89.
- Net Leverage: Improved from 3.0x as of June 30, 2024, to 2.4x by September 30, 2024.
- Advanced Bookings: As of November 3, 2024, 95% of 2024’s Core Product capacity PCDs had been sold, alongside 70% for the 2025 season.
Operational Performance
- Fleet Expansion and Occupancy: Capacity PCDs increased by 1.9%, with Q3 2024 occupancy at 94.0%.
- Vessel Operating Expenses: Increased 3.7% to $329.2 million, reflecting fleet expansion and higher maintenance costs.
Net income for Q3 2024 stood at $374.8 million, a significant recovery from a net loss of $1,238.2 million in Q3 2023. The results include a $18.6 million loss due to the revaluation of warrants, compared to larger losses from derivatives and Series C Preference Shares in 2023.
Update on Operating Capacity and Bookings
For our Core Products, operating capacity has increased significantly over the past and upcoming seasons. Capacity for the 2024 season is 5% higher than in 2023, and for the 2025 season, it is projected to grow by an additional 12% compared to 2024.
As of November 3, 2024, 95% of the 2024 season Capacity PCDs had been sold, along with 70% of the 2025 season Capacity PCDs. Advance Bookings for the 2024 season reached $4,633 million, reflecting a 14% increase compared to the same time in 2023. For the 2025 season, Advance Bookings totaled $4,329 million, marking a 26% increase from the same period in 2024.
In terms of Advance Bookings per PCD, the 2024 season averaged $727, an 8% rise over 2023, while the 2025 season is projected to average $820, a 7% increase compared to 2024.