Viking Line (VIK1V) Q2 2024 earnings summary

Executive summary

• Sales for January–June 2024 declined 3.2% to EUR 219.1M compared to EUR 226.3M in 2023, reflecting weaker demand and a challenging market environment.

• Operating income was EUR -4.3M, down from EUR 17.1M (which included an EUR 8.6M capital gain from the Rosella sale) in the prior year.

• Net income for the half-year was EUR -12.5M, compared to EUR 7.2M in 2023.

• Passenger numbers fell to 2,062,271 (from 2,185,843), and market share dropped to 33.0% (from 34.8%).

• The launch of Birka Gotland and expanded Finland–Sweden service increased costs and did not meet initial expectations.

Financial highlights

• Q2 2024 sales were EUR 125.9M, down 4.9% year-over-year; operating income was EUR 6.2M (EUR 18.0M in Q2 2023).

• Net financial items for H1 2024 were EUR -8.1M (EUR -7.7M in 2023).

• Passenger-related revenue for H1 2024 decreased 4.3% to EUR 192.3M; cargo revenue rose to EUR 25.2M.

• Operating expenses increased 6.3% to EUR 160.2M, with salary and employment benefit expenses up 12.2%.

• Cash and cash equivalents at June 30, 2024, were EUR 58.0M (EUR 97.7M in 2023); net cash flow from operating activities was EUR 23.3M.

Outlook and guidance

• The Board revised its 2024 earnings forecast, expecting income before taxes to be weaker than 2023 (excluding the EUR 8.6M Rosella gain).

• Peak season (June–August) income is forecast to match 2023, but uncertainty remains due to the Finnish recession and volatile energy prices.

• Initial traffic for Birka Gotland underperformed, with higher start-up costs and lower sales.