Private placement derivative drags Viking's Q1 though yield, revenue risePrivate placement derivative drags Viking's Q1 though yield, revenue rise
Viking Holdings' first quarter net loss widened on the loss related to a private placement derivative though both net yield and revenue rose.
May 29, 2024

Net loss was $493.9m compared to $214.4m a year ago. This includes a loss of $330.5m and Q1 2023 includes a gain of $15.5m related to the net impact of a private placement derivative and interest expense related to the company’s Series C preference shares. Those shares converted into ordinary shares prior to the completion of the company's initial public offering.
Occupancy rises
Revenue increased 14.2%, to $718.2m, on ship additions and higher occupancy. Passenger cruise days were up 14.5%, and occupancy was 94% compared to 92.8% a year ago.
Viking allows up to two people per stateroom and sometimes sells solo rooms, so CFO Leah Talactac noted occupancy will never exceed 100% (as it typically does for big ships).
Q1 record $508 net yield
Adjusted gross margin increased 19.1% year-over year, resulting in net yield of $508, up from $494 and the highest Viking ever recorded in a first quarter. Adjusted EBITDA was up $46.1m.
Vessel operating expenses increased 6.8%, and operating expenses excluding fuel were up 7.8% year over year.
As of May 19, Viking had sold 91% of its 2024 season and 39% of 2025 for its core products.
Viking Chairman Torstein Hagen was pleased with the performance and encouraged by strong advance bookings.
A seasonal business
The results reflect the seasonality of Viking's business. While ocean, expedition and Mississippi products operate year-round, the primary river cruise season runs from April to October. Additionally, the highest occurs during the Northern Hemisphere’s summer months.
Viking explained it recognizes cruise-related revenue over the duration of the cruise and expenses marketing and employee costs when the related costs are incurred. As a result, the majority of the company's revenue and profits have historically been earned in the second and third quarters.
Net proceeds of IPO
On May 3, Viking closed its $1.8b initial public offering, with net proceeds of approximately $245.5m to Viking and approximately $1.4b to certain selling shareholders.
As of March 31, the company had $1.7b in cash and cash equivalents, which does not include the IPO proceeds, and net debt of $3.9b.
Leverage declines and credit rating rises
Net leverage declined from 3.8x on Dec. 31 to 3.4x as of March 31. In May Standard & Poor's upgraded Viking's corporate rating to BB- from B+.
See also 'Viking firms options for two more ocean newbuilds in 2029' and 'Viking continues contrarian: No guidance nor striving for investment grade'
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