Viking recently held its first earnings call as a public company, revealing a strong first quarter and a promising booking curve for the upcoming years. The cruise company reported a 14% increase in revenue year over year, growing from $629 million to $718 million in Q1. Chairman and CEO Tor Hagen emphasized the importance of a long-term view of the business, stating that Viking won’t be providing earnings and revenue guidance like other public companies. Instead, Viking will focus on creating shareholder value without managing the business for short-term earnings.
During the earnings call, Viking detailed its booking curve, disclosing that the company is 91% booked for 2024 with $4.6 billion in advanced bookings, representing a 15% increase from the previous year. For 2025, Viking is 39% booked with $2.5 billion in advanced bookings, showing a 27% year-over-year increase. Hagen mentioned that cruises are being booked at “attractive” prices, indicating a positive trend in the company’s future revenue.
Despite the strong quarter, Viking experienced a slight dip in occupancy for river cruises, dropping from 93.5% to 92.1%, mainly due to lower occupancy for Egypt cruises. However, ocean cruise occupancy rose from 93.9% to 94.5%, showcasing growth in that segment. Viking’s Q1 net loss widened to $494 million, primarily due to a $330.5 million impact from a private placement derivative loss related to the company’s Series C preference shares. Excluding this one-time item, the company reported a relatively strong quarter, considering that Europe river cruises typically peak in Q2.
Viking has an ambitious expansion plan in place, with 18 river ships in its order book through 2026, including ships for Europe, Egypt, and Vietnam/Cambodia. The company also announced the addition of four more river ships in 2027 and four in 2028. Additionally, Viking has six ocean ships in its order book through 2028, with options for two more ocean ships scheduled for delivery in 2030. This strategic expansion will position Viking for continued growth in the cruise industry.
Viking’s strong first quarter earnings and robust booking curve for 2024 and 2025 demonstrate the company’s strategic focus on long-term value creation. Despite challenges in occupancy rates and financial performance, Viking remains optimistic about its future growth trajectory. With a clear expansion plan in place, Viking is poised to capitalize on the increasing demand for cruises and solidify its position as a leading player in the industry.