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Viking reports second quarter 2024 financial results

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 22 August 2024 22 August 2024

Viking Holdings Ltd today reported financial results for the second quarter ended June 30, 2024.

Key Highlights

– Total revenue for the second quarter of 2024 increased 9.1%, or $132.5 million compared to the same period in 2023.
– Adjusted Gross Margin increased 9.5% compared to the same period in 2023, resulting in a Net Yield of $562.
– Adjusted EBITDA increased 11.6% compared to the same period in 2023.
– Net Leverage improved from 3.4x as of March 31, 2024 to 3.0x as of June 30, 2024.
– As of August 11, 2024, for the 2024 and 2025 seasons, Viking had sold 95% and 55%, respectively, of its Capacity Passenger Cruise Days for its Core Products.

“We are pleased to report that we have already sold 95% and 55% of the capacity PCDs for our Core Products for the 2024 and 2025 seasons, respectively,” said Torstein Hagen, Chairman and CEO of Viking. “Our latest Advance Bookings metrics give us confidence that our core consumer demographic continues to show resiliency, prioritizing travel and actively seeking enriching, memorable experiences. We are increasing our share of the luxury leisure travel market through capacity growth while maintaining an unparalleled offering with great value for our guests. We believe that our clear focus on our core consumer demographic and our product is the essence of our brand promise and the cornerstone of our success.”

Second quarter 2024 consolidated results

During the second quarter of 2024, Capacity PCDs increased by 3.1% over the same period in 2023 and Occupancy was 94.3%.

Total revenue for the second quarter of 2024 was $1,587.3 million, an increase of $132.5 million, or 9.1% over the same period in 2023 mainly driven by higher revenue per PCD and an increase in the size of the Company’s fleet in 2024 compared to 2023.

Gross margin for the second quarter of 2024 was $657.0 million, an increase of $89.7 million, or 15.8%, over the same period in 2023 and Adjusted Gross Margin for the second quarter of 2024 was $1,037.7 million, an increase of $90.4 million, or 9.5%, over the same period in 2023. Net Yield was $562 for the second quarter, up 6.6% year-over year.

Vessel operating expenses and vessel operating expenses excluding fuel for the second quarter of 2024 were $329.0 million and $284.1 million, respectively. Compared to the same period in 2023, vessel operating expenses increased $4.1 million, or 1.3%, and vessel operating expenses excluding fuel increased $3.0 million, or 1.1% mainly driven by the increase in the size of the Company's fleet in 2024 compared to 2023.

Net income for the second quarter of 2024 was $155.8 million compared to $190.1 million for the same period in 2023. The net income for the second quarter of 2024 includes a loss of $123.0 million from the revaluation of warrants issued by the Company due to stock price appreciation. It also includes a loss of $65.8 million related to the net impact of the Private Placement derivative (loss) gain and interest expense related to the Company’s Series C Preference Shares. In comparison, the second quarter of 2023 includes a gain of $3.4 million from the impact of the Series C Preference Shares. The Company’s Series C Preference Shares converted into ordinary shares immediately prior to the consummation of the Company’s IPO. The second quarter of 2024 is the final quarterly period for which the financial results will include Private Placement derivative (loss) gain and interest expense related to the Series C Preference Shares. Excluding the impact of these items - the majority of which are non-cash - net income for the period was $344.6 million.

Adjusted EBITDA increased by $51.3 million compared to the second quarter of 2023. The increase in Adjusted EBITDA was mainly driven by higher revenue per PCD and higher Capacity PCDs.

“We are delighted to share our second quarter results which include a Net Yield growth of 6.6% over the prior year on a 3.1% increase in capacity,” said Leah Talactac, CFO of Viking. “Looking ahead, it is encouraging to see demand trends further supporting our bookings for next year. These are a testament to the strength of the Viking brand, the financial strength of our customer and our nimble and proactive sales and management team.”

Update on operating capacity and bookings

For our Core Products, operating capacity is 5% higher for the 2024 season in comparison to the 2023 season and 12% higher for the 2025 season in comparison to the 2024 season.

As of August 11, 2024, for our Core Products, and for the 2024 and 2025 seasons, we had sold 95% and 55%, respectively, of our Capacity PCDs and had $4,642 million and $3,442 million, respectively, of Advance Bookings. Advance Bookings were 14% and 20% higher in comparison to the 2023 and 2024 seasons, respectively, at the same point in time. Advance Bookings per PCD for the 2024 season was $731, 8% higher than the 2023 season at the same point in time, and Advance Bookings per PCD for the 2025 season was $833, 10% higher than the 2024 season at the same point in time.

New build and capacity

In August 2024, the Company took delivery of the Viking Hathor, a river vessel that will operate in Egypt. Based on the committed orderbook, the Company expects to take delivery of another river vessel and one ocean ship later this year.

CAI 2024 Conference to be hosted in Funchal, Madeira

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 20 August 2024 20 August 2024

The Voice President of the Cruise Lines International Association (CLIA) in Europe, Nikos Mertzadinis, will be the coordinator of the Cruise Atlantic Islands Conference 2024, which will be held over three days, at the end of September, in Madeira.

Mertzadinis, who is responsible for Ports and Destinations at CLIA in Europe, will represent this association that brings together 95% of the total capacity of cruise ships worldwide and more than 50 thousand travel agents, at the event that takes place between the 26th and 28th of September, in Funchal, the capital of Madeira.

“We are very excited to have Nikos Mertzadinis in Madeira. He is a very respected voice in the industry, and will bring to this Conference a comprehensive and in-depth view of a sector that he knows like few others”, highlights the CEO of Ports of Madeira (APRAM, SA), Paula Cabaço, saying that the objective of the conference is to project the future of the cruise market in the Macaronesian islands of the Atlantic, discussing the challenges and opportunities that lies ahead.

Cruise Atlantic Islands (CAI) brings together the ports of Madeira, Canary Islands, Azores and Cape Verde, in a common commercial and communication strategy. It currently represents a market of 3.3 million cruise tourists, and took its first steps as a collective brand on September 19, 1984, at a meeting in Funchal that brought together port officials from Madeira and the Canary Islands.

This Conference, promoted by APRAM, will mark this date, through a tribute and a conversation with the participants of this founding meeting: Juan Francisco Martin (former Commercial Director of the Ports of the Canary Islands), João Reis (former president of APRAM), Michael Blandy (former CEO of the Blandy Group), Eduardo Alvarez Hamilton (former CEO of Hamilton & CO, in the Canary Islands), Franklim Spencer (former president of the Ports of Cape Verde) and Pedro Roque (former president of the Port Authority from Tenerife).

“It will be an opportunity to pay homage to all these people, of great value and vision, to whom the cruise market in the Macaronesia region owes a lot. They realized that only by working together could we establish ourselves in a global and competitive industry, such as cruises”, says Paula Cabaço.

The Conference, which will take place in Funchal City Hall, a partner of APRAM, will feature a wide and diverse range of sector experts, like Eduardo Cabrita, general director of MSC Portugal, Fiona Noone, director of Planning and Port Operations at Marella Cruises / TUI, Kai Algar, director Planning and Port Operations at Fred. Olsen Cruises Lines, Sylviane de Tracy, director of Development and Research at Ponant, Hugo Basto, director of Mystic Cruises, and Rafael Fernández-Álava, director of Communication and External Relations at Costa Cruzeiros.

“The quality of the speakers at this conference shows the interest with which the industry looks at the potential of our market. CAI is a consolidated product in the industry, but continues to offer a large margin for growth”, emphasizes the CEO of APRAM.

The event will bring together CAI members, guests, operators, companies, industry agents, government officials and national and international journalists for three days.

The Conference is not limited to sectoral debates within the cruise industry. It will have a strong social component. The program starts on the 26th and ends on the 28th. Includes a visit to the Funchal Ecological Park, on September 26th, for international and national guests, speakers and journalists; and a FAM Trip, on September 28th, to the North of the Madeira Island, also for international and national guests, speakers and journalists. One of the highlights of the conference is the Welcome Cocktail that will take place at the end of September 26th, where the founders of CAI will be honored.

Disney selects Meyer Werft to build four new ships announced last week

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 12 August 2024 12 August 2024

Meyer Werft and Disney Cruise Line will continue their long and successful partnership: the German shipyard will build four additional ships that will join Disney Cruise Line’s fleet between 2027 and 2031, giving families more opportunities to experience the world-class dining, exceptional entertainment, and signature hospitality that Disney Cruise Line is kown for. The ship names, designs, and itineraries are still in development.

“We are very happy to continue our partnership with Disney Cruise Line and build four additional outstanding ships over the next seven years. We now have eight ships for Disney Cruise Line in our order book which reflects the trust in our capabilities and hard work of our team," says Bernard Meyer.

“Our Disney cruise ships are the true ambassadors for our brands and beloved by families the world over,” said Thomas Mazloum, president, New Experiences Portfolio and Disney Signature Experiences. “As we embark on this ambitious and unprecedented expansion for Disney Cruise Line, we are delighted to work with Meyer Werft once again.”

Meyer Werft and Disney Cruise Line have a longstanding relationship, that started with Disney Dream and Disney Fantasy, which were delivered in 2010 and 2012. In 2022, the first Wish-Class cruise ship Disney Wish was handed over to Disney Cruise Line. The two sister ships Disney Treasure and Disney Destiny are currently under con-struction in Papenburg and will be delivered in 2024 and 2025.

With this new order, Meyer Werft has contracted 10 cruise ships, a research vessel and four offshore converter platforms, which will be delivered until 2031.

MSC Cruises launches new itinerary planning optimization tool

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 07 August 2024 07 August 2024

MSC Cruises will see its fleet of ships’ emissions reduced by up to 15% in 2026 thanks to the introduction of a new itinerary planning optimization tool called OptiCruise.

The line has developed a new mathematical model with OPTIMeasy, a research company affiliated to the University of Genoa, that comprehensively examined numerous factors that influence the planning of each of MSC Cruises’ itineraries to achieve the optimum level of efficiency for a sailing, while maintaining or enhancing guest satisfaction.

Voyage planning within the global cruise industry has traditionally been heavily weighted towards the attractiveness of ship destinations for potential travelers.

OptiCruise broadens the scope substantially to include numerous other aspects which influence an itinerary’s efficiency, including sequencing of the port calls, departure and arrival times at ports, a ship’s speed, the appeal and attractiveness of destinations for a guest, shore excursions, and operational costs such as fuel, port charges and food provisions.

The tool’s algorithms use all of the information to identify optimized itineraries, which continue to appeal to guests, while allowing for energy efficiency.

Cruise ship itinerary planning typically takes place two years before a sailing and OptiCruise’s benefits will be evidenced in 2026 when MSC Cruises’ fleet will number 24 ships.

MSC Bellissima was chosen to evaluate the prototype technology over a 12-month period as the ship sailed between 17 ports in the Mediterranean Sea.

MSC Cruises’ strategy to achieve net zero greenhouse gas (GHG) emissions by 2050 for its marine operations is focused on three key areas - ship and engine technology, operational efficiency and renewable fuels. OptiCruise comes under the operational efficiency focus with the cruise line making greater use of digitalization to drive efficiencies in energy consumption.

Michele Francioni, Chief Energy Transition Officer, MSC Cruises, said: “We have identified and developed this new technology to optimize the decision-making process of itinerary planning with the aim to further reduce emissions across our fleet from 2026. The OPTIMeasy team calculates that the average fuel savings made, and emissions reduced by using OptiCruise are in the range of 10-15 percent which is a significant step forward in our ambition to achieve our net zero greenhouse gas emissions target by 2050 for our marine operations.”

OptiCruise was developed as part of the European Union’s funded Project CHEK, that was established to investigate and trial several low-carbon shipping opportunities including energy technologies and innovative ship designs.

The mathematical model was accepted for development by Project CHEK as it was recognized as a factor that could substantially reduce emissions, not just for MSC Cruises but across the entire cruise industry.

The CHEK Project is part of the EU’s Horizon research and innovation program and led by the University of Vaasa in Finland. The consortium includes, as well as MSC Cruises, the World Maritime University, Wärtsilä, Cargill and Lloyds Register, among others.

Windstar Cruises to celebrate 40 years of small ship sailing

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 30 July 2024 30 July 2024

Windstar Cruises will commemorate its 40th anniversary season starting in October of 2024. To mark this milestone and kick off the celebration, guests are invited to join the festivities on board Star Legend’s Aegean Sea Odyssey Via the Corinth Canal cruise departing October 12 or Wind Spirit’s Treasures of the Greek Isles cruise departing October 13. The two yachts (one Wind Class and one Star Class – the two styles of Windstar’s small ships) will come together in Kusadasi on October 16 for a special celebration in Ephesus.

Founded by ship entrepreneurs Karl G. Andrén and Jean-Claude Potier, Windstar Cruises began as Windstar Sail Cruises in October of 1984 with motor sailing ships. Now with six small ships, three Wind Class sailing ships and three Star Class motor yachts, the line is considered the leader in small ship cruising and is experiencing a period of unprecedented success and growth, including the addition of two new all-suite motor yachts in 2025 and 2026.

“Windstar has had a remarkable 40 years in which the company has remained devoted to small- ship cruising with long-standing sailings in Tahiti, the Caribbean, and Europe,” said Windstar President Christopher Prelog, who has been at Windstar for nearly eight years but began his career nearly 30 years ago as a waiter on board what is now Windstar’s Star Legend. “Windstar has carved its own niche with upscale yachts that provide a welcoming ambiance and the luxury of space and freedom to explore scenic regions and smaller ports, but it’s truly our crew that have made our brand successful, standing the test of time with a friendly smile, remembering our past guests and greeting them by name – often with a big hug. These are the moments that have made our guests return again and again over our 40 years, and that’s what we want to focus on this anniversary – our relationships and our devoted team.”

To recognize the outstanding crew, many who have served for decades, Windstar is encouraging guests to share their favorite crew stories (and tag #WayBackWindstar) on Windstar’s social channels beginning in October.

The line’s ruby anniversary officially kicks off on October 16 when the 148-guest Wind Spirit and the 312-guest Star Legend come together for an event in the City of Ephesus for live music and a five-course dinner under the stars. This longtime, complimentary offering has been wildly popular with Windstar guests over the years, so it’s a fitting venue and moment to celebrate the anniversary.

Windstar will celebrate its 40-year anniversary across the fleet from October 2024 through October 2025 with additional activations and memorable moments – with more details to come. Guests should expect the following:
– Complimentary Ruby Anniversary cocktails served at a special 40 years of Windstar trivia event on board
– 40 years of Windstar trivia winners will be entered into a random drawing held in December 2025 to win a cruise for two aboard Star Seeker’s inaugural cruise
– Limited edition Seabags, a 40th anniversary series that is crafted from recycled Wind Surf sails, will be on board for purchase in the ship’s shops