Viking swings to Q3 profit, is well-booked for 2025 at higher pricingViking swings to Q3 profit, is well-booked for 2025 at higher pricing

Viking swung to a third quarter profit as the company moved away from private placement derivative losses of the past, and yield and revenue both rose 11%.

Adjusted EPS 89 cents

Adjusted earnings per share were 89 cents, a nickel above Wall Street's expectation, and revenue increased 11.4% year over year to $1.67b, in line with the consensus expectation. Revenue growth was mainly driven by stronger pricing.

Adjusted EBITDA was up 15.3% on higher revenues in both the river and ocean segments.

70% of 2025 capacity sold

The company has already sold 70% of its 2025 capacity — when passenger cruise days are 12% greater than in 2024 — at rates higher than in 2024.

Q3 adjusted net income was $393.6m compared to the net loss of $1.23b a year ago. The recent quarter includes an $18.6m loss from the revaluation of warrants issued due to stock price appreciation. Q3 2023 included losses related to Series C Preference Shares and the revaluation of warrants. The Series C Preference Shares converted into ordinary shares following Viking's IPO in May this year, and Q2 was the final quarter when results included a private placement derivative loss and interest expense related to the Series C Preference Shares.

Net yield $576 and occupancy 94%

Net yield was $576, up 11% from $519, while occupancy was 94%, compared to 94.9% a year ago.

Related:Viking's free cash flow a cushion or acquisition facilitator

Vessel operating expenses excluding fuel increased 4.4%, mainly driven by maintenance and repair costs and 5% more operating capacity this year than in 2023.

Bookings update

Viking has sold 95% of 2024 inventory. At Nov. 3, the company had $4.63b of advance bookings, 14% higher than the 2023 season at the same point in time, and $4.3b of advance bookings for the 2025 season, 26% higher than the 2024 season at the same point in time.

Advance bookings per pasenger cruise day for 2024 season were $727, 8% higher than the 2023 season at the same point in time, and advance bookings per PCD for the 2025 season were $820, 7% higher than the 2024 season at the same point in time.

Liquidity

Net leverage improved to 2.4 times as of Sept. 30, down from 3 times at June 30.Viking has $2.4b in cash and cash equivalents and an undrawn revolver facility of $375m. Net debt is $3b.

Scheduled principal payments are $53m for the remainder of 2024 and $462m for 2025.