Viking Q2 profit lower on one-time items but net yield up 6.6%, revenues 9.1%

Net income was  $155.8m compared to $190.1m a year ago. Excluding one-time items, net income was $344.6m.

Revenues rose 9.1% to $1.58b, ahead of the consensus $1.43b forecast, driven by higher revenue per passenger cruise day and higher capacity.

Net yield $562

Net yield was $562, up from $527 a year ago.

Adjusted EBITDA increased 11.6%.

Capacity increased 3.1% over Q2 2023 and occupancy was 94.3% compared to 94.6% a year ago.

One-time items

Q2 net income includes a $123m loss from the revaluation of warrants issued by the company due to stock price appreciation and a $65.8m loss related to the net impact of the private placement derivative loss and interest expense related to Series C Preference Shares. Q2 2023 had a $3.4m gain from the impact of the Series C Preference Shares.

The Series C Preference Shares converted into ordinary shares immediately prior to Viking going public. The recent quarter is the final period that will see an impact related to Series C Preference Shares.

Advance bookings

As of Aug. 11, Viking had sold 95% of capacity cruise days for 2024 and 55% for 2025.

'Our latest advance bookings metrics give us confidence that our core consumer demographic continues to show resiliency, prioritizing travel and actively seeking enriching, memorable experiences,' Viking Chairman/CEO Torstein Hagen said. 'We are increasing our share of the luxury leisure travel market through capacity growth while maintaining an unparalleled offering with great value for our guests.'

Advance bookings were 14% and 20% higher in comparison to the 2023 and 2024 seasons, respectively, at the same point in time. Advance bookings per passenger cruise day for the 2024 season was $731, 8% higher than the 2023 season at the same point in time, and advance bookings per PCD for the 2025 season was $833, 10% higher than the 2024 season at the same point in time.

Operating capacity is 5% higher for the 2024 season in comparison to 2023 and 12% higher for the 2025 season compared to this year.

Net leverage

Cash and cash equivalents total $1.8b, and net debt is $3.6b. Net leverage improved from 3.4x at March 31 to 3x at June 30.

See also 'Hagen sees no consumer slowdown, and Viking's "ahead of the curve"' and 'Viking's "very measured approach" to China'