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).

• Revenue for Q3 2024 increased 11.4% year-over-year to $1,679 million, with net income of $375 million, reversing a $1.2 billion loss in Q3 2023.

• Occupancy remained high at 94–95%, with capacity PCDs up and repeat guest percentage rising to 53% for 2024.

• Expansion in Egypt and Asia continues, with new Nile River vessels delivered and tailored offerings for Asian markets.

• Secondary offering of 34.5 million shares increased institutional float and adjusted ownership structure.

Financial highlights

• Adjusted gross margin for Q3 2024 was $1,099 million, up 12% year-over-year; adjusted EBITDA reached $554 million, up $73 million year-over-year.

• Adjusted EPS for Q3 2024 was $0.89; diluted EPS was $0.86.

• Year-to-date adjusted gross margin up 12.3% to $2.6 billion; net yield up 7.5% to $556.

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

• Cash and cash equivalents stood at $2.4 billion as of September 30, 2024.

Outlook and guidance

• 2024 capacity nearly sold out; 2025 bookings robust with 12% capacity increase and 70% already sold.

• 2025 advanced bookings up 26% year-over-year, with rates trending higher than 2024.

• Management expects mid to high single-digit yield growth for 2024 and 2025.

• Booking curve accelerated due to election year volatility, but normalization expected in future years.

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