Viking (VIK) Q3 2024 earnings summary

Executive summary

• Consolidated net yield rose 11% year-over-year, with strong demand, effective cross-selling, and robust advance bookings for 2024 (95% capacity sold) and 2025 (70% capacity sold as of early November).

• Brand loyalty and repeat guest percentage increased to 53% for 2024, supporting future product launches and growth; high brand awareness and industry accolades reinforce competitive positioning.

• Maintains global operations across 7 continents, 85+ countries, and 500+ ports, with a single brand strategy.

• Expansion in Egypt and China, with new vessels and tailored offerings for Asian markets, supports long-term growth.

• Occupancy was 94%+ for Q3 2024, with capacity PCDs up 1.9% year-over-year.

Financial highlights

• Q3 2024 total revenue increased 11.4% year-over-year to $1,679 million, driven by higher revenue per PCD.

• Adjusted gross margin up 12% to $1.1 billion; adjusted EBITDA reached $554 million (50.4% margin), up over $73 million year-over-year.

• Net income for Q3 2024 was $375 million, compared to a $1.2 billion loss in Q3 2023; adjusted net income was $394 million.

• Adjusted EPS for Q3 2024 was $0.89.

• Vessel operating expenses per Capacity PCD were $162 in Q3 2024.

Outlook and guidance

• 2024 capacity nearly sold out; 2025 bookings robust with 12% capacity increase and 70% already sold; 2025 advance bookings up 26% year-over-year.

• Ocean segment 2025 advance bookings are 30% higher than 2024 at the same point, with 74% of capacity sold; river segment 2025 advance bookings are 22% higher, with 67% of capacity sold.

• Management expects some normalization in booking curve acceleration post-2024.

• No formal guidance provided, but mid to high single-digit yield growth targeted.

• Additional river and ocean vessels scheduled for delivery through 2032.