Viking Holdings shows 14% revenue growth in its first earnings report as a public company

Viking Holdings Ltd (NYSE:VIK) shares fell on Wednesday in early action after the cruise line operator released its first earnings report as a publicly traded company.

In the first quarter, Viking Holdings’ (VIK) revenues increased 14.2% year-over-year to $718.2 million. Revenue growth was primarily driven by an increase in the company’s fleet size and higher load factor in 2024 compared to 2023. Adjusted gross margin for the quarter increased 19.1% to $495.3 million. Ship operating costs (excluding fuel) increased by 7.8% in the quarter. Viking (VIK) reported net profitability in the first quarter of $508.

We recorded the first quarter results as a reflection of the seasonality of VIK’s operations. “While our ocean, expedition and Mississippi products are offered year-round, the primary cruise season for our river products is April through October, although some of our river cruises last longer,” the company emphasized. Overall, Viking (VIK) has the highest occupancy rates during the summer months in the Northern Hemisphere.

Viking ( VIK ) ended the quarter with cash on its balance sheet of $1.7 billion, which excludes proceeds from its IPO. Scheduled principal payments for the remainder of 2024 and 2025 were $196.4 million and $489.0 million, respectively. VIK also posted deferred revenues of $4.1 billion.

CFO update: “We are excited to share strong first quarter financial results, which demonstrate strong demand for our products and brand… Additionally, strengthening our balance sheet remains a priority, as evidenced by our cash balance and reduction in net leverage. We are also very pleased with the increase in S&P’s credit rating. These achievements underscore our commitment to financial prudence and the pursuit of sustainable growth.

Shares of Viking Holdings (VIK) fell 1.01% pre-order up to $30.29. The company’s IPO was priced at $24 per share.