Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 20.5% year-over-year to almost $1.4 billion, driven by higher capacity and revenue per passenger cruise day (PCD) [16] - Adjusted gross margin rose by 19.5% year-over-year to nearly $870 million, resulting in a net yield of $507, which is 7.4% higher than Q4 2023 [17] - Adjusted EBITDA for Q4 totaled $306 million, up 39.7% from the previous year, with net income for Q4 2024 reported at $104 million compared to a loss of $594 million in Q4 2023 [18] - Adjusted net income attributable to Viking Holdings Limited for Q4 2024 was $200 million, with adjusted EPS at $0.45, and full-year adjusted EPS at $1.86 [19] Business Line Data and Key Metrics Changes - In the river segment, capacity PCDs increased by 3.7% year-over-year, with adjusted gross margin growing by 15.8% to $1.6 billion and net yield up by 11.7% to $533 [21] - For the ocean segment, capacity PCDs increased by 6.2% year-over-year, with adjusted gross margin rising by 12.1% to $1.5 billion and net yield increasing by 5% to $522 [23] Market Data and Key Metrics Changes - The company reported a repeat guest rate of 53% and direct bookings exceeding 50%, with a leading market share of 52% in the river segment and 24% in the ocean segment [10] - As of February 23, 2025, advance bookings for 2025 were at $5.3 billion, 26% higher than the same point in 2024, with 88% of capacity already booked [27] Company Strategy and Development Direction - The company aims to grow its core capacity by 12% in 2025 with the delivery of 10 river ships and one ocean ship, emphasizing a leadership position in the river cruise market [28] - Viking is committed to maintaining high customer satisfaction and operational efficiency, leveraging its unique fleet design and in-house operations to enhance product delivery [30][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for core products, with 2025 shaping up to be a great year despite macroeconomic uncertainties [27][84] - The company highlighted its ability to generate demand through its extensive database, allowing for a contrarian approach in uncertain times [83] Other Important Information - Viking became a publicly traded company on the New York Stock Exchange on May 1, 2024, and received the 2024 North America IPO of the Year award [12] - The company has a strong balance sheet with total cash and cash equivalents of $2.5 billion and a net leverage ratio of 2.4 times as of December 31, 2024 [24] Q&A Session Summary Question: Why hasn't 2026 been added to the booking curve charts? - Management focused on 2024 performance and 2025 bookings, with 2026 showing strong early demand but not yet ready for detailed discussion [53][55] Question: How will the company respond to new competition in the river market? - Management believes they are well-positioned with a 52% market share and a strong order book, emphasizing their unique product offerings and customer satisfaction [57][60] Question: What are the current demand trends by region? - Management reported strong demand for 2025, with 88% of capacity sold and positive trends in both river and ocean segments [64] Question: What are the barriers to entry for new competitors? - Management highlighted their extensive docking rights and established market presence as significant barriers to entry for new competitors [77][78] Question: How does the company manage booking curves in uncertain macro environments? - Management noted that their strong booking curves provide flexibility to respond to market conditions, with a focus on high-end customers who are more resilient [84][85] Question: What are the company's priorities for growth in the next 3 to 5 years? - Management indicated a focus on expanding in markets like Egypt and China, with a commitment to direct marketing to these regions [90][91]

Viking Holdings Ltd (NYSE:VIK) Q4 2024 Earnings Conference Call March 11, 2025 8:00 AM ET Company Participants Carola Mengolini - Vice President of Investor Relations Tor Hagen - Chairman and Chief Executive Officer Leah Talactac - President and Chief Financial Officer Linh Banh - EVP of Finance Conference Call Participants Steve Wieczynski - Stifel Matthew Boss - JPMorgan Robin Farley - UBS Andrew Didora - Bank of America Brant Montour - Barclays Meredith Jensen - HSBC Dan Politzer - Wells Fargo Operator G ...

Certain statements in this presentation constitute "forward-looking statements" within the meaning of the U.S. federal securities laws intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statementsinclude, but are not limited to, all statements other than statements of historical facts contained in this presentation, including among others, statements relating to our future financial performance, our business prosp ...

Financial Performance - Total revenue for the year ended December 31, 2024, was $5,333,882, an increase of 13.2% from $4,710,493 in 2023[341]. - Net income attributable to Viking Holdings Ltd for 2024 was $152,331, compared to a net loss of $1,850,572 in 2023[341]. - Adjusted EBITDA for 2024 was $1,348,302, up from $1,090,322 in 2023, reflecting a significant recovery in operational performance[343]. - ROIC for 2024 improved to 40.8%, compared to 26.7% in 2023, indicating enhanced efficiency in generating operating income relative to invested capital[346]. - Adjusted Free Cash Flow (FCF) for 2024 was $1,726,154, representing a conversion rate of 128.0%, up from 92.3% in 2023[346]. - The company reported a diluted net income per share of $0.36 for 2024, compared to a loss of $4.42 per share in 2023[341]. - Total revenue for the year ended December 31, 2024 increased by $623.4 million, or 13.2%, to $5,333.9 million from $4,710.5 million in 2023[353]. - Viking River segment revenue increased by $313.1 million, or 13.4%, to $2,654.4 million for the year ended December 31, 2024, compared to $2,341.3 million in 2023[356]. - Viking Ocean segment revenue increased by $250.8 million, or 12.9%, to $2,196.0 million for the year ended December 31, 2024, compared to $1,945.2 million in 2023[357]. Operational Insights - The operating capacity for Viking River, Viking Ocean, Viking Expedition, and Viking Mississippi is projected to be 12% higher for the 2025 season compared to the 2024 season[307]. - The company strategically manages its fleet to optimize occupancy and reduce operating costs based on early booking insights[317]. - The company expects seasonality trends in revenue and profits to continue, with the majority of revenue historically earned in the second and third quarters[320]. Shareholder Information - The company completed its IPO on May 3, 2024, issuing 11,000,000 ordinary shares at a price of $24.00 per share, resulting in net proceeds of $243.9 million[310]. - The company had 442,721,700 total ordinary and special shares outstanding as of December 31, 2024[315]. - The number of weighted-average ordinary shares outstanding (diluted) increased to 366,709 in 2024 from 221,936 in 2023[341]. - As of December 31, 2024, there were options outstanding for 2,128,724 ordinary shares with a weighted average exercise price of $15.81, and 1,343,777 restricted share units (RSUs) outstanding[460]. - The 2018 Equity Incentive Plan has reserved 54,600,000 ordinary shares for issuance, with approximately 18,706,701 shares remaining available for future issuance as of December 31, 2024[461]. - The 2024 Employee Share Purchase Plan (ESPP) has reserved 4,680,000 ordinary shares for issuance, with annual increases starting in 2025[474]. Debt and Financing - The average indebtedness for the four quarters of 2024 was $6,503,078, a decrease from $8,574,041 in 2023[348]. - Total debt obligations as of December 31, 2024, amounted to $5,480.993 million, with future interest payments totaling $1,499.488 million[382]. - The company entered into a credit agreement for a five-year Revolving Credit Facility in an aggregate principal amount of $375.0 million in June 2024[372]. - The company has secured financing for its new ocean ships, with a total contract price of $4,753.5 million for 10 ships scheduled for delivery between 2025 and 2030[398]. Impairment and Valuation - The company recognized a $28.6 million impairment for river vessels in Russia and Ukraine in Q1 2022, reducing their carrying value to zero due to operational uncertainties[424]. - An additional impairment of $13.3 million was recognized in Q2 2022 for the Viking Legend and Viking Prestige vessels, also reflecting their carrying values exceeding fair values[425]. - No impairment indicators were identified for vessels and ships as of December 31, 2024, and no impairment loss was recognized for the years ended December 31, 2024 and 2023[422]. - The estimated recoverable amount for the vessels in Russia and Ukraine was determined to be zero, reflecting the oldest vessels in the fleet and lower historical operating results[424]. Employee and Governance - The company’s executive team includes experienced professionals with backgrounds in finance, operations, and marketing, contributing to strategic decision-making[432]. - The company’s board of directors comprises members with extensive experience in law, finance, and the maritime industry, enhancing governance and oversight[442]. - Total compensation for directors and executive officers for the year ended December 31, 2024, was $304.9 million, primarily related to equity awards that vested upon the IPO[453]. - The board of directors currently consists of eight members, with specific rights for principal shareholders to designate nominees[489]. - The Audit Committee includes members who qualify as independent directors and meet financial literacy requirements[493]. - The company has adopted a clawback policy compliant with NYSE Listing Rules, allowing for reduction or recoupment of incentive-based compensation[486]. - The Compensation Committee is responsible for setting the compensation program for executive officers and monitoring incentive plans[495]. - The company has entered into a collective bargaining agreement with the Norwegian Seafarers' Union and the Associated Marine Officers' and Seamen's Union of the Philippines for certain employees on its ships[501]. - No U.S. employees are subject to collective bargaining agreements, and the company maintains a generally good relationship with employees and unions[501].

Core Viewpoint - Viking Holdings (VIK) is set to release its fourth-quarter 2024 results on March 11, with earnings per share (EPS) estimates stable at 36 cents, reflecting a significant decline of 59% from the previous quarter's actuals, while revenue estimates are at $1.4 billion, indicating a 19.6% decrease from the third quarter [1][2]. Group 1: Earnings Performance - VIK has consistently surpassed the Zacks Consensus Estimate in each of the three quarters since going public, with an average earnings beat of 37% [3]. - The company's upcoming results are expected to be supported by its fleet expansion efforts, including the addition of a new ocean ship, Viking Vela, which will operate in the Mediterranean and Northern Europe [4]. Group 2: Challenges and Headwinds - Despite positive performance expectations, VIK faces challenges such as increased expenses related to commissions, transportation, and onboard services, along with inflation and global supply-chain disruptions that may pressure margins [5]. - Geopolitical risks are also noted as operational challenges that could negatively impact performance [5]. Group 3: Earnings Prediction Model - The current model does not predict a definitive earnings beat for VIK, as it has an Earnings ESP of -4.49%, with the most accurate estimate being 2 cents below the consensus estimate of 36 cents [6][7]. - VIK holds a Zacks Rank of 2 (Buy), indicating a favorable outlook despite the earnings prediction challenges [7].

Core Insights - Viking Holdings (VIK) has consistently beaten earnings estimates, particularly in the last two quarters with an average surprise of 8.69% [1] - For the most recent quarter, Viking reported earnings of $0.89 per share against an expectation of $0.83, resulting in a surprise of 7.23% [2] - The previous quarter also saw a positive surprise, with actual earnings of $0.76 per share compared to an estimate of $0.69, yielding a surprise of 10.14% [2] Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Viking, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [3][6] - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests that another earnings beat is likely [6] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [4] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5] - A positive Earnings ESP indicates that analysts have recently become more optimistic about the company's earnings prospects [6] - A negative Earnings ESP can reduce the predictive power of the metric, but does not necessarily indicate an earnings miss [6]

Core Viewpoint - Goldman Sachs analyst Lizzie Dove initiated coverage on Viking Holdings Ltd with a Neutral rating and a price forecast of $49, highlighting the company's strong business model and revenue growth potential due to demographic trends and category expansion [1] Group 1: Business Model and Demographics - Viking Holdings has a high exposure to a growing demographic that books ahead at higher prices, which enhances its revenue growth [1] - The core demographic for Viking Holdings consists mainly of affluent US travelers aged 55 and older, representing about 30% of the population but over 70% of the wealth [3] Group 2: Market Position and Competition - The stock has risen 73% since its IPO in May 2024, leading the analyst to seek a better entry point due to its valuation premium compared to Royal Caribbean Cruises Ltd [2] - Viking Holdings has less new-to-cruise customers compared to its peers, which have seen double-digit growth in this segment, particularly among millennials and younger travelers [4] Group 3: Booking Visibility and Financial Strategy - Viking Holdings has high booking visibility, with 70% of bookings for 2025 already secured, indicating less potential for near-term estimate revisions and share repurchases [2] - Despite a strong pipeline of potential cruisers, the company may miss out on the new-to-cruise growth that has benefited the broader industry [4]

Group 1 - Viking Holdings (NYSE: VIK) has shown strong performance despite macroeconomic challenges, with forward booking metrics indicating solid growth potential ahead [1] - The author maintains a buy rating on Viking Holdings, reflecting confidence in the company's future performance [1] Group 2 - The author emphasizes a diverse investment approach, incorporating fundamental, technical, and momentum investing strategies to enhance the investment process [1]

Core Insights - Viking Holdings (VIK) is highlighted as an exciting investment opportunity, with expert analysts providing insights into market trends and potential investment avenues [1] Company Overview - The stock price referenced is from October 16, 2024, indicating a specific timeframe for the analysis [1] - The video discussing Viking Holdings was published on November 28, 2024, suggesting that the insights are relatively recent and relevant [1]

Regulatory Suspension - Avila Energy Corporation is suspended effective immediately under CSE Policy 3, categorized as a Regulatory Halt as per National Instrument 23-101 Trading Rules [1][3] - A cease trade order has been issued by the Alberta Securities Commission [1][3] Additional Information - For further details regarding Cease Trade Orders, stakeholders are directed to the Canadian Securities Administrators Cease Trade Order database [2][4]