Viking Line (VIK1V) Q3 2024 earnings summary

Executive summary

• Sales for January–September 2024 declined 2.3% to EUR 370.6M compared to the same period in 2023, with Q3 sales at EUR 151.5M, slightly below last year.

• Operating income for the nine months was EUR 25.2M, down from EUR 52.4M (which included an EUR 8.6M gain from the Rosella sale); Q3 operating income was EUR 29.4M, also below last year.

• Net income for January–September was EUR 12.4M, compared to EUR 34.8M last year; Q3 net income was EUR 24.9M, down from EUR 27.6M.

• Passenger volumes and market share declined, while cargo volumes and market share increased.

• The launch of Birka Gotland incurred higher-than-expected costs and lower occupancy rates initially, though occupancy improved in summer.

Financial highlights

• Passenger-related revenue fell 3.3% to EUR 331.7M; cargo revenue rose 9.1% to EUR 36.8M for the nine months.

• Operating expenses increased 7.1% to EUR 244.7M, with salary and employment benefit expenses up 11.5% due to staffing for Birka Gotland.

• Net financial items were EUR -9.1M for the period, slightly worse than last year.

• Cash and cash equivalents at period end were EUR 61.1M, down from EUR 88.6M a year earlier.

• Investments totaled EUR 18.3M, mainly for Viking Cinderella and Birka Gotland, down from EUR 30.3M last year.

Outlook and guidance

• Management expects 2024 income before taxes to be weaker than 2023, excluding the EUR 8.6M Rosella gain, due to continued recession in Finland and geopolitical uncertainty affecting energy prices.

• Consumer demand remains uncertain, with measures underway to address the trend.