Viking Holdings Ltd · NYSE:VIK
Viking — Q2 2024 Earnings Presentation
23 slides from Viking's earnings presentation, Aug 22, 2024
Slide 1: Q2 2024 Earnings Presentation
Q2 2024 Earnings Presentation August 22, 2024
Slide 2: Disclaimers and additional information
Disclaimers and additional information Forward‐looking statements Certain statements in this presentation constitute “forward‐looking statements” within the meaning of the U.S. federal securities laws intended to qualify for the safe harbor from liability established by the Private Securities Litiga
Slide 3: Business overview
Business overview 2
Slide 4: Q2 Business update
Q2 Business update Net Yield +6.6% year‐over‐year 2024 Advance Bookings 95% capacity PCD sold (1) 2025 Advance Bookings 55% capacity PCD sold (1) Note 1: Based on bookings for Viking’s Core Products as of August 11, 2024 3 Note 2: Advance Bookings is the aggregate ticketed amount for guest bookings
Slide 5: Viking's marketing platform allows us to generate consumer demand
Viking’s marketing platform allows us to generate consumer demand DIRECT MAIL EMAIL DATABASE (1) DATABASE (1) 56 million 5 million email households addresses WEBSITE DIGITAL VISITORS (2) SEGMENTS (1) 69 million unique 49 million visitors annually audiences Demand is subsequently captured when consum
Slide 6: Viking is focused on a clear demographic
Viking is focused on a clear demographic 2023 passengers by source market United Kingdom Australia 4% Other 5% Clear demographic • Curious and active • Affluent • English‐speaking • 55 years + • Well‐educated • Interested in history, science, culture and art Who have 90% • More time • More disposabl
Slide 7: Viking's target demographic is attractive and growing
Viking’s target demographic is attractive and growing Fastest growing Largest spending power U.S. population aged 55+ Travel lifetime of demographic Q1 2024 Share of U.S. population and wealth is also increasing as individuals stay healthier longer 27% 54 and 70% 110 million under 98 million +13% 73
Slide 8: Viking's guests prioritize learning, culture & history, and experiences
Viking’s guests prioritize learning, culture & history, and experiences We deliver on our guests’ preferences World‐Class Lectures: our onboard lecture Destination Performances: representing the Field Research Scientists: visiting program designed to shed light on history, most iconic cultural perfo
Slide 9: Recognized as a leading travel company by multiple publications in Summer 2024
Recognized as a leading travel company by multiple publications in Summer 2024 Also Ranked #1 by Condé Nast Traveler in 2023 Across Rivers, Oceans1 and Expeditions2 No other travel company has simultaneously been honored for Rivers, Oceans and Expeditions by both Travel + Leisure and Condé Nast Trav
Slide 10: Q2 2024 Highlights
Q2 2024 Highlights 9
Slide 11: Q2 2024 key metrics
Q2 2024 key metrics Viking Holding Ltd Financial and Operating Results Three Months Ended Twelve Months Ended June 30, June 30, December 31, 2024 2023 2024 2023 (in millions, except for PCD, per PCD and percentage information) Total revenue $ 1,587 $ 1,455 $ 4,932 $ 4,710 Adjusted Gross Margin(1) 1,
Slide 12: Viking River and Viking Ocean: key metrics
Viking River and Viking Ocean: key metrics Six Months Ended June 30, 2024 2023 Consolidated Occupancy 94.2% 94.0% Adjusted Gross Margin(1) (in millions) $ 1,533 $ 1,363 Net Yield $ 543 $ 517 Six Months Ended June 30, 2024 2023 Viking River Occupancy 94.7% 95.0% Adjusted Gross Margin(1) (in millions)
Slide 13: Strong cash generation and manageable near-term bond maturities
Strong cash generation and manageable near‐term bond maturities Key Balance Sheet Metrics as of June 30, 2024 Bond Maturities (in millions) $825 $850 $720 $675 $1.8bill $3.6bill 3.0x Cash and cash Net Debt(1) Net Leverage(1) equivalents $250 2024 2025 2026 2027 2028 2029 2030 2031 12 _______________
Slide 14: Business outlook
Business outlook 13
Slide 15: Viking has a robust booking outlook
Viking has a robust booking outlook 2024 Season 5% 95% $4.6bill 14% Capacity PCD increase Capacity PCD sold Advance Bookings Advance Bookings (booked YTD) growth(1) 2025 Season 12% 55% $3.4bill 20% Capacity PCD increase Capacity PCD sold Advance Bookings Advance Bookings (booked YTD) growth(1) _____
Slide 16: Ocean Advance Bookings update
Ocean Advance Bookings update 2024 vs. 2023 • $1,932 million of Advance Bookings; 15% higher than the 2023 season at the same point in time in 2023. • 6% year‐over‐year increase in operating capacity PCDs. • 94% of capacity PCDs sold. • 2024 Advance Bookings per PCD of $665 compared to $621 for 2023
Slide 17: River Advance Bookings update
River Advance Bookings update 2024 vs. 2023 • $2,343 million of Advance Bookings; 14% higher than the 2023 season at the same point in time in 2023. • 4% year‐over‐year increase in operating capacity PCDs. • 96% of capacity PCDs sold. • 2024 Advance Bookings per PCD of $761 compared to $690 for 2023
Slide 18: Attractive committed orderbook
Attractive committed orderbook Viking River 2024 2025 2026 2027 2028 2029 2030 Total River committed orderbook Longships (190 berths) 4 4 8 Longships (102‐168 berths) 3 3 Other (80‐82 berths) 1 3 2 6 Total committed orderbook 1 10 6 17 River options Longships (190 berths) 4 4 8 Total (including opti
Slide 19: Appendix
Appendix 18
Slide 20: Financial and operating definitions
Financial and operating definitions Adjusted EBITDA is EBITDA (consolidated net income (loss) adjusted for interest income, interest expense, income tax benefit (expense) and depreciation, amortization and impairment) as further adjusted for non‐cash Private Placement derivative gains and losses, cu
Slide 21: Adjusted Gross Margin reconciliation
Adjusted Gross Margin reconciliation Three Months Ended Six Months Ended Consolidated June 30, June 30, 2024 2023 2024 2023 (in thousands) (unaudited) (unaudited) Total revenue $ 1,587,261 $ 1,454,771 $ 2,305,416 $ 2,083,765 Total cruise operating expenses (878,601) (832,343) (1,382,526) (1,308,830)
Slide 22: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Three Months Ended Twelve Months Ended June 30, June 30, December 31, 2024 2023 2024 2023 (unaudited) (in thousands) Net income (loss) $ 155,801 $ 190,054 $ (2,172,415) $ (1,858,601) Interest income (14,738) (10,029) (62,401) (48,027) Interest expense 100,623 173,334 4
Slide 23: Net Leverage
Net Leverage June 30, 2024 March 31, 2024 (unaudited) (in thousands, except Net Leverage) (1) Long-term debt $ 4,743,410 $ 5,061,200 (1) Current portion of long-term debt 456,153 276,826 Long-term portion of lease liabilities 215,385 221,248 Short-term portion of lease liabilities 24,658 24,433 Tota