Viking CFO Leah Talactac on going public and 2025 prioritiesViking CFO Leah Talactac on going public and 2025 priorities

Viking's IPO was 2024's second biggest by funds raised, $1.77b, according to Dealogic, and shares nearly doubled in six months — a gratifying outcome for CFO Leah Talactac.

The stock's uptick was 'much faster' than expected, she said. 'Investors realize Viking is a different company and understand how we're differentiated from other cruise lines ... and our share price reflects that.'

In an exclusive interview with Seatrade Cruise News, Talactac shared the process leading up to the IPO and talked about educating investors, how Viking's contrarian, what she's learned from Torstein Hagen, 2025 priorities and growth plans.

Longtime senior executives who built Viking were on the NYSE platform as Torstein Hagen rang the opening bell. Leah Talactac is center right, next to Hagen PHOTO: NYSE

'I cried'

At the New York Stock Exchange on May 1, Talactac stood with other longtime senior executives who'd built the company as Viking founder, Chairman and CEO Hagen rang the opening bell. Talactac's two young daughters were among the Viking family and friends on the trading floor. 

'It was overwhelming. I cried,' she said.

Preparing for the IPO was a 'long and involved process' of a good two years, working with auditors and bankers, and then a 'very intensive six months' leading up to the launch date. Apart from the financial prep, the 'psychology of the individuals that make up a company' and their readiness to become a public entity also figured in.

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

Despite the work, going public was 'more fun than I thought it would be,' Talactac said.

This crowned her 18 years at Viking, 'an incredible journey,' being part of the growth from 22 river vessels to more than 100 ships spanning rivers and oceans, with a high level of brand awareness.

It was Talactac's first involvement in an IPO. Before Viking, she began her career at Ernst & Young (now EY) and audited public companies. So she was used to looking at what people have done. Joining Viking in 2006 was an opportunity to learn how to do things. Meeting Hagen sealed the deal.

'A magnetic personality'

'He had such enthusiasm. The entrepreneurial spirit resonated from him. He had so much energy and belief in this company,' she said, 'huge experience, a magnetic personality and was willing to teach.

'And every day is a learning exercise with Tor.'

Plus, Viking's collaborative culture appealed: It's a 'collegial, flat organization. Everybody's point of view matters.'

That's also a reason she's stuck with Viking — 'because people's opinion and contributions are valued, and together we're building this company with a product that people enjoy so much.'

Leah Talactac, fourth from left, was among the godmothers for seven Viking river vessels in 2019. Hers was Viking Einar. A celebration was held at the Picasso Panorama exhibit at the Fondation Beyeler museum in Basel PHOTO: VIKING

Learnings from Hagen

Talactac's soaked up a lot from her boss — mainly, that 'nothing is impossible,' which she said he's proven over and over. 'Tor's said it may take time, it may take money, but ... when you have enough conviction in something, you can make it happen.'

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

Another takeaway: flawless execution. When embarking on a new project, 'You'd better do it well.'

And on that will be familiar to TV viewers: Be curious.

'Tor says that in the commercials but he truly lives by it,' Talactac said. Don't accept the status quo, and when there's a roadblock, consider other angles to find a solution.

All these lessons are embodied in Viking's move into ocean cruising. Given the brand's success with that in just a decade, people may forget how the doubts were stacked against this river cruise operator getting financing and building out as it has. Talactac recalled the laughter at an early ship delivery when Hagen and Fincantieri's CEO each held up 10 fingers, audaciously suggesting a fleet of 20.

11th ocean ship in service

'But here we are with 11 ships and another potentially 13 ships coming by 2032. So nothing is impossible. If you want it to happen enough, there is a way. We just proved time and time again that you don't listen to "no." '

A traditional Viking axe figured into Viking Vela's December naming in Trieste PHOTO: VIKING

Capping 2024, Talactac was in Trieste for Viking Vela's naming as the 11th in the series that began with 2015's Viking Star.

Visiting the ships, meeting the crew and experiencing the product is 'always a treat' that gives 'pride in what we're doing' beyond the numbers on paper.

2025 priorities

With 70% of Viking's 2025 capacity already booked during 2024 at 7% higher rates on a 12% capacity hike, there's already a strong base of business for this year.

So the company can focus on the delivery of 10 river vessels and ocean ship Viking Vesta and, as ever, providing an 'outstanding travel experience.'

When it's time to plunge into 2026 sales, 'maybe the curve won't be as steep' as it was in 2024 for 2025. Because there's typically short-term volatility in US presidential election years, Viking accelerated the booking curve to sell more earlier. As it turned out, the election was 'less impactful' than Talactac thought it would be, with no significant disruptions.

With the incoming administration, Viking's keeping an eye on how policies may affect the economy or consumers' perceived wealth, however she doesn't currently see any cause for concern.

It's the same for geopolitical issues. Apart from the Red Sea itinerary adjustments that were already made, there's nothing specific that's worrisome on the radar.

Value for money

Like other lines, Viking's prices are going up but Talactac said 'We're not out here to grab every last dollar. Our price point is such that we want people to feel they get value for money. We want them to repeat.'

So the emphasis is on expanding the product portfolio to ensure wherever customers want to travel, Viking can take them there.

Educating investors

Of the publicly traded cruise companies, VIK has the third highest market capitalization (currently $18.7b) after two much larger groups: Royal Caribbean ($61.5b) and Carnival Corp. ($31.8b) and ahead of Norwegian Cruise Line Holdings ($11.2b).

Things are looking up at Viking PHOTO: NYSE

At the close of 2024, VIK shares taillied an 83.58% return so investors must be pleased, but is there pressure to follow the pack, say adding casinos or courting younger customers?

Viking management spent a lot of time during the road show educating the investor community on how it's different. This included its famous 'no' list: No casinos, no children under 18, no nickel and diming, no butlers. And Hagen's founder's letter in the prospectus indicated these fundamentals are not going to change.

'We will maintain a clear focus on the target demographic: 55-plus,' Talactac said. 'We do not try to be all things to all people.'

Viking loyalists know 'exactly what they're going to get every time they come on our ships. Why would we mess with that?'

No dividend plans, no EPS guidance

Continuing the no's, Viking has no plans to issue a dividend, and it's not providing earnings per share guidance.

'We are not going to manage quarterly,' Talactac said. 'We are going to do what's right by our guests and for the long-term health and profitability of the company. There may be periods of time that we make decisions that may surprise them and it may reflect in our financials but we're not providing guidance.'

Instead, Viking charts bookings for the ocean and river businesses by month and shows how pricing has changed. It's taken a while for investors and analysts to get used to this, 'But from our point of view,' the CFO said, 'we're going to give investors the information they need — not projections, not speculation, not hints about the future, but we're going to provide the facts as they happen.'

Understanding that river and ocean booking cycles differ is another thing that's needed explaining. Talactac said the company is managed as one brand, so it's 'agnostic for us' whether customers book river or ocean or expedition or the Mississippi, 'as long as they book on Viking.' The executive committee doesn't make decisions that push one product over another but aims to ensure the overall company's profitability.

Investors are encouraged to not get bogged down in river-ocean comparisons but to 'focus on the big picture.'

Healthy orderbook

Viking has nine ocean newbuilds on order including this year's Viking Vesta, 2026's Viking Mira and XIV, XV (2027), XVI and XVII (2028), XVIII (2029) and XIX and XX (2030), plus options for four more spread across 2031 and 2032.

Viking plans to grow its Nile fleet to 10 vessels PHOTO: VIKING

Besides 2025's 10 river vessels (including Viking Amun and Viking Thoth on the Nile and Viking Gyda for the Douro) in 2026 six further river deliveries are planned (including Viking Skhmet and Viking Ptha for the Nile, bringing the company's Egypt fleet to 10). Viking holds options for four more Longships in 2027 and in 2028.

That makes for a 'pretty healthy pace,' as Talactac put it.

Newbuilds for China?

In 2023, Hagen stated some newbuilds would go to China.

This remains to be seen. Talactac said the Mandarin-speaking and wider Asia market have 'strong potential,' but the company's taking a 'measured' approach.

'It's a bit early for us to make predictions but we are committed to maintaining the brand in the region.' Building tonnage for specific source markets depends on how things develop, though 'not a lot of hardware changes are needed' — mostly signage and staffing, making it 'very easy for us to pivot.'

And with just limited investment in emerging markets, capacity 'could be absorbed by the English-speaking market' if Asia doesn't pan out.

Yi Dun in Shenzen PHOTO: VIKING

The company currently dedicates four European Longships to Mandarin-speakers, a 'very small' percentage of capacity. As for ocean ships, Yi Dun — built as Viking Sun and part of the joint venture with China Merchants Shekou — carries Mandarin-speaking and English-speaking passengers on different dedicated sailings, in line with Viking's 'one language' philosophy.

Apart from China, exploring Japan — 'another source market that we feel could potentially be a large market' — with some sales network investments and dedicated cruises in 2024 and 2025.

No imminent Mississippi expansion

Closer to home, US river cruising looks to be capped at Viking Mississippi, the company's sole US-built vessel. Originally there were plans for more. Not now, 'but nothing is impossible.'

Americans who don't wish to fly overseas can look to Viking's expedition cruises on the Great Lakes or Canada/New England fall foliage sailings.

Viking in five and 10 years?

As for how Talactac sees Viking's future, 'We do take a long-term view. We are pretty well planned through 2032. Our vision is to maintain our over 50% market share in river, and our growth engine is really through oceans. How other source markets may develop is also someting that's quite interesting to see in the next five to 10 years. We believe there's a lot of potential.

'At the end of the day, we're a simple company with a very clear focus on guests, a long-term view and continuing to be contrarian. That is what makes us who we are. And when we keep focused on that, we will deliver quality products that keep bringing guests back.'