Viking Takes Flight: Record-Breaking Quarter and Year Highlighted by Strong Demand, Operational Efficiency, and Historical Achievements
Viking has wrapped up its fourth quarter and full year 2024 with a resounding success, showcasing the company's unique points of differentiation that have contributed to its remarkable performance. Chairman and Chief Executive Officer Tor Hagen took center stage during the conference call to highlight key metrics from the past year.
With a focus on core guest demographics, the power of its One Viking brand, well-defined product offerings, and operational efficiency, Viking's results reflected a 6.3% growth in capacity and a healthy demand from customers, leading to a net yield increase of 7.4%. This strong top-line result was accompanied by an adjusted gross margin increase of 14% year-over-year to more than $3.5 billion.
The company's disciplined approach to expenses and focus on operational efficiency enabled Viking to achieve an adjusted EBITDA of $1.3 billion, up 23.7% from the previous year. The company also managed its balance sheet well, ending the year with a 40.8% return on invested capital and a net leverage of 2.4x.
Viking's operational metrics were equally impressive, with record guest satisfaction scores, a repeat guest rate of 53%, direct bookings north of 50%, and leading market share positions in both rivers (52%) and ocean segments (24%).
In addition to its financial achievements, Viking also celebrated some historic milestones during the year. On May 1, it became a publicly traded company on the New York Stock Exchange, receiving the 2024 North America IPO of the Year Award from the International Financing Review magazine in recognition of this achievement.
Other notable accolades include being ranked #1 by Conde Nast Traveler across rivers, oceans, and expeditions for the second consecutive year and being recognized as the world's best by Travel and Leisure. Viking also celebrated a historical return to China, offering its English-speaking guests a tender is along the Chinese Coast.
Perhaps most intriguingly, Viking's team on the Viking of Antarctica discovered a new colony of penguins not previously known to science. This scientific discovery underscores the company's commitment to exploration and providing unique experiences for its guests."
