The company has applied to list on the New York Stock Exchange under the symbol VIK.
In this preliminary filing, Viking did not disclose the number of shares it plans to offer, but the 292-page document provides insight into the company's performance and plans.
Adjusted EBITDA margin increased more than 35% to $1.09 billion in 2023.
Net return $506, utilization 93.7%
Total revenue per passenger was $7,251. Net yield increased from $473 to $506 and average occupancy was 93.7%, up from 78.4% in 2022.
The company has 92 ships, including nine oceangoing ships and two expedition ships, and carried 650,000 passengers in 2023.
“Viking always did things differently”
CEO Torstein Hagen opened the prospectus by saying, “Viking has always done things differently than others in the travel industry,” and attributed the company’s success to this.
“We are clearly focused on our most relevant customer group: English-speaking travelers aged 55 and over who have the time, money and desire to explore the world.” We don't try to be all things to all people, which is why we only offer a monolingual experience on board our ships experience on; there are no casinos; and children under 18 are not allowed,” Hagen said.
He also cited a “clearly defined and consistent” product with distinctive Scandinavian design and the ability to “deliver a superior product at competitive prices.”
Rely on direct marketing
Hagen said Viking relies on direct marketing to drive the majority of bookings: “We have the opportunity to generate demand rather than waiting for third parties to do it for us.” In 2023, more than 50% of passengers booked directly at the company, which has a database of 56 million North American households.
And Hagen said Viking has taken a controversial approach to investment decisions, using times of economic downturns or lower consumer demand to secure favorable conditions for its new builds.
New construction orders, options and new products
Viking has 24 ships on order, with options for 12 more, and has begun exploring new markets such as China and elsewhere in Asia, “where we see significant long-term growth potential,” Hagen said. (Viking reported a loss of $7.3 million in 2023 on part of its joint venture operations in China.)
“In addition, as we have expanded our travel platform throughout our history, we are also exploring other products such as safaris and land tours that would allow our guests to explore more of the world in Viking comfort.”
outlook
For Viking's core products, operating capacity for the 2024 season is 5% higher than 2023 and 2025 is 12% higher than 2024. For core products for the 2024, 2025 and 2026 seasons, Viking had sold 87% as of March 31 . , 32% and 4% of capacity (passenger cruise days), respectively, and had $4.4 billion, $2.08 billion and $340 million in advance bookings, respectively.
Compared to the 2023, 2024 and 2025 seasons at the same time, these advance bookings are 13%, 43% and 54% higher, respectively. The advance booking price per PCD was $750 for 2024, 9% higher than the 2023 season, and for 2025 was $860, 12% higher than the 2024 season.
Shareholders
The majority shareholder is Viking Capital, whose sole shareholder is Pallice Global, which is wholly owned by a trust of which Torstein Hagen is the sole beneficiary during his lifetime. Daughter Karine Hagen is the current protector of the trust.
Selling shareholders are the Canada Pension Plan Investment Board and TPG, each of which initially purchased $250 million in Series A preferred shares in October 2016. In July 2017, both purchased $86 million of Viking's Series B preferred stock. In February 2021, Series C preferred shares were issued, with CPP and TPG each taking half in exchange for a cash payment of $700 million and Viking's repurchase of the outstanding Series A and B shares.
During the pandemic, Viking received a $500 million equity raise from CPP and TPG in November 2020.
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