Viking (VIK) Q2 2024 earnings summary

Executive summary

• Consolidated net yield rose 6.6% year-over-year, with robust demand and 95% of 2024 and 55% of 2025 capacity sold as of August 11.

• Total revenue grew 9.1% year-over-year to $1,587.3 million in Q2 2024, driven by higher revenue per PCD and fleet expansion.

• Adjusted EBITDA for Q2 2024 was $493 million, up over $50 million year-over-year, with a margin of 47.5%.

• Net income for Q2 2024 was $155.8 million, impacted by non-cash losses from warrant revaluation and Series C Preference Shares; adjusted net income was $344.6 million.

• Maintained high occupancy rates above 94% across river and ocean segments, supported by a focused demographic and award-winning brand recognition.

Financial highlights

• Adjusted gross margin increased 9.5% year-over-year to $1,037.7 million in Q2 2024.

• Vessel operating expenses per capacity PCD for Q2 2024 were $168; excluding fuel, $145.

• Net yield for Q2 2024 was $562, up from $527 in Q2 2023.

• Net leverage improved to 3.0x as of June 30, 2024, from 3.4x at March 31, 2024.

• Deferred revenue stood at $3.8 billion as of June 30, 2024.

Outlook and guidance

• 2024 capacity is almost fully sold, with $4.6 billion in advanced bookings, 14% higher than last year.

• 2025 bookings are 55% sold, with $3.4 billion in advanced bookings, 20% higher year-over-year; operating capacity for 2025 is up 12%.

• Ocean advance bookings for 2024 are 15% higher year-over-year, and 2025 bookings are 24% above 2024 at the same point.

• River advance bookings for 2024 are 14% higher year-over-year, and 2025 bookings are 13% above 2024 at the same point.

• Management expects mid to high single-digit yield growth to continue.