Havila Kystruten (HKY) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 results with revenue up 62% year-over-year to NOK 464 million, driven by higher occupancy, average cabin rate, and onboard spend per passenger night.

• EBITDA turned positive at NOK 128 million, a substantial improvement from a negative result in Q3 2023, marking the second consecutive quarter of positive EBITDA.

• Customer satisfaction remains high, with a Net Promoter Score of 72 and multiple awards for product quality and cuisine.

• Environmental targets met, including a 30% reduction in CO2 emissions and food waste per passenger night at 66g.

• Operational uptime reached 97%, with only one significant disruption quickly resolved.

Financial highlights

• Q3 2024 revenues reached NOK 464 million, up from NOK 226 million in Q3 2023.

• Q3 EBITDA improved to NOK 128 million from -NOK 36 million in Q3 2023.

• Average cabin rate rose 30% year-over-year to NOK 5,200; onboard spend per passenger night increased 11% to NOK 770.

• Book equity is negative NOK 182 million, mainly due to unrealized currency losses from euro-denominated debt, but value-adjusted equity is close to NOK 3.9 billion.

• Q3 2024 net loss was NOK 190 million; cash and cash equivalents at quarter end were NOK 314 million.

Outlook and guidance

• Occupancy for 2024 expected at 75%, with 2025 bookings already at 41% of capacity and average cabin rate growth of 20%-30% targeted for 2025.

• EBITDA guidance: 2024 target NOK 200 million (margin 10-15%), 2025 NOK 400-500 million (margin 20-30%), 2026 NOK 600-800 million (margin 30-40%).

• Focus remains on price and margin improvement, with modest volume growth and initiatives to increase onboard sales.

• Forward-looking statements subject to risks and uncertainties, including currency fluctuations.