Viking (VIK) 19 Nov 242024 Q3 Earnings call transcript

Good morning. My name is Paul, and I will be your conference operator today. At this time, I would like to welcome everyone to Viking's Third Quarter 2024 Earnings Conference Call.

As a reminder, this call is being recorded. [Operator Instructions] Thank you.

to Vice program Carola President like for your Mengolini. now conference, today's of would turn to the host I Investor Relations,

Earnings available Chief Vice Executive Good Third and Banh, Leah joined welcome Executive and Financial Officer; Q&A Tor Conference Officer. session Chief XXXX Linh Also by and morning, Finance. am the Call. President Chairman to Hagen, of Talactac, I during everyone, Quarter Viking's is

information. started, get cautionary note please forward-looking we Before statement our regarding

that is which the and management filings as release actual detailed call, evaluate discuss information information the uncertainties in those factors, as During and well the known other results than in are risks, in Please context may forward-looking today's the unknown or different may with our SEC. involves the implied. of press expressed forward-looking which to these and be cause factors,

statements The which Relations our to these posted Investor or website supplement are today, no certain on press assume at financial of may to obligation forward-looking described and our in update reconciled refer and non-IFRS We as statements. release we ir.viking.com. also are metrics,

results and current an provide Leah overview quarter strategic the update a Tor recap third our of a company, the booking of environment. of will and

Investor the our questions. Relations an call, we website earnings We this call have for will on To following then prepared be also presentation open your supplement available today's that call. will

Tor. over With I'm that, to to call the turn pleased

quarter, a has and strong. performance Carola, been everyone. Thank you, the call will good morning, which few today's I indicators for start highlighting remarkably

from consolidated third X, net a our quarter with see the can Slide year. on great you reported prior As yield up XX% results we

XXXX XX% XX% believe our that for Products with with strong products well capacity capacity of target our resonate this November continue our XXXX I we of to experience position booking how XXXX. as sold demand reflects our and X, Additionally, of Core consumer. our

about our talk opportunity strong cross-selling sales which demand, practices, ability top-rated today, is more brand little to to our take effective fueled singular a end, and bit want I product, the by generate approach. recognition this to To well-defined and marketing and the

next across Now to XX our sailed oceans, highlighting slide, the rivers I if of the at great operations. and our this sets look XX and scale by X We and reach global lakes, we experiences brand, unforgettable start the offering guests we countries want that all in excellence in achieved Viking, a across under continents. apart over presence X is us What [indiscernible] single X loyalty consistently of that the to our And allows growth is continues brand all excellence immensely efforts to industry: gratifying offerings. Ocean, consistently demand, products the and the this being high X our Viking mentioned River all I recognized. of across while standards brand. fuel it product see our One Each categories and reflects cruise top-rated This strong of Expedition. marketing to drive our

Choice are our a me These won year levels expeditions slide, because Traveler is and next #X the and one reasons, meaningful the by means marks but time guest Readers' see particularly gratifying voted that These of our back-to-back these If in many Awards. row, passion brand are they that to oceans, rivers excellence. you will you guests, awards X by them has travel follow for dedication categories on #X they rated increase was This years. in their reflect in first which for a for hard for achievement company the for Nast they Viking Conde are of loyalty. XXXX that team's #X satisfaction that work, second

we Ocean, that cross-sell XX% they the completely by at deliver graphs launches. to over to guest seasons to each summary, the show see brand itineraries trust loyalty love that season guests. XX% product is or inaugural percentage the see [indiscernible] this In Over the the leverage XX% can steadily trends you ability has date. of move to made the can Mississippi past from for experiences, [ Viking our Moreover, new the time to 'XX for offering of to we that it brand guests base. Expedition season our were customer our loyal These If for Viking our you our for future ] for repeat offerings. increased benefits Slide One best-in-class single Viking XXXX the whether of X, our of new effectively in bookings and strong Viking travel be bottom for product of slide, across our

Moving to Slide X.

XX we by leading market. the outbound market built the single around past our are world. in target the is brand years, brand recognized the markets America we river North ocean Today, in that a and have luxury For highly

With drives awareness of a strong we As our luxury single XX% brand, and products. third for had of cruises brand the U.S. all growth our of total XX% for quarter XXXX, brand cruises. river ocean for awareness

Our leverage is brand clear marketing we can message efforts. and sales and streamline and our

globally. I share earlier, some on these updates This to like I Egypt unique regions. would I traveled past and to Viking operates quarter, as Now mentioned China, and

First, let's on on Egypt X. focus Slide

believe accommodate of Viking our couple most Just guests vessels Hathor Viking ships the each, Sobek. under and brings more the newest Luxor the These Nile and XXXX. they delivered ships, ago, can be a and have we X way by the beautiful the addition I elegant weeks This to XX navigate the count X to construction was Egypt of X offer that River, for to in for I our naming Nile.

portion Although in destination guests. of Egypt digits a our single is it of great interest for the low XXXX, a our for total capacity small represents

XX our example, guests that strong our experience Pharaohs a Pyramids offers demand Night itinerary and rich yields. and culturally fascinating For and garners

to product. We distinctive this able be offer to very are pleased frankly highly

This quarter, also to traveled I Shanghai.

have adopted to experiences destination-focused a core language pertains and a we which flip general, now to board. unique will in you of see principles environment China as approach market you slide, single Asian rooted that the include next in on If and the couple it

now let's China and Dun, ocean with to cruises guests and that on in of with expand celebrated have same been explore level So This access country, to exclusive our Yi its destinations. to include with itineraries XXXX can our ocean tenders comfort exciting addressing by begin that the us, return for visited provided coastline China rarely guests. in an journey for offerings. our English-speaking Viking In we fascinating new we the of plan our Asia a is September, offering marks this Japan. program start and

guests' been Asian better experiences end, ocean and industry. addition, to are underserved In product our serve believe market guests. the Asian preferences this cruise historically will by on a provide expanding has to our culturally language. cruises we We To our specifically that we the tailored Asian rich

crew. XXXX, and to dedicated offered lastly, Mandarin-speaking cruises the for fully in their Europe curated vessels we these since we operate And [indiscernible] river adapted itineraries X taste Chinese for guests. have These excursions Currently, feature experiences.

portfolio. our only portion important target to and the our a very I've long-term overall small very are They products our appealing growth role While represent an of in strategy. highlighted demographics play

Slide XX. turning gears and shifting to Now

price XX.X TPG a of Capital During we of million offering a CPP behalf on of at Investments $XX and secondary this per share. completed shares quarter,

the changed ownership in participated this our and event on offering increasing the slide, flows. slightly appreciate all support institutional interest the you composition, and We company. As can the in this continued see who

of we quarter, in forward to success have be this We much growth. and and to continued proud look our

With will that, to Leah discuss to I financials. turn our

and Tor, everyone. you, Thank good morning to

resulting increased the remarkable We this PCDs. before, consolidated We because, to $X.X quarter third XXXX total as revenue margin in On be quarter. are increased quite XX.X% already very yield to mainly year-over-year $X.X higher year a gross higher billion, of the per $XXX, for very I Adjusted billion, have a than reported pleased revenue XX% basis, due a of quarter was to a have in year-over-year net us. almost XXXX. strong good believe to third to XX% mentioned

expenses fuel to but time capacity year this Vessel flat the compared on increased last almost per year-to-date PCDs a remained same basis. excluding X.X% quarter

quarters costs. needs on can increase due repair and depending year-over-year quarter's factors. fleet maintenance the other mainly This and expenses vary was These between to

Adjusted driven revenues year-over-year totaled for This ocean and last quarter improving months. to adjusted and same the margin third higher trailing million year. both The when per EBITDA compared XX.X% PCDs river in the was significant segments. $XX quarter was the XX XX.X% million, $XXX more EBITDA the for third increase by the last than time for

shares Net the XXXX third income the net a for and warrants. $XX XXXX. billion due the to comparison, warrants C the from a additional stock million of loss the third impact million includes $XX of of includes the quarter company The for in same preference Series almost of XXXX of for revaluation appreciation. of of XXXX to of compared loss price to third issued was In $XXX revaluation income the the $X.X quarter due billion million from $X.X the by of a loss period an loss quarter

the net attributable of XXXX for loss, Ltd was the Excluding third Holdings warrants quarter to adjusted $XXX Viking million. income

served or and Holdings This of EPS numerator our items Adjusted that future part introduced a Adjusted calculating this net excluding represents income are which metric income for loss to net business believe performance. we attributable adjusted not as operating Viking certain $X.XX. was we reflect earnings Ltd do primary our EPS, not quarter.

higher and increased Before year-to-date, I highlight to margin gross would moving $X.X like $XXX, to X.X% period our our that than year. the yield last same billion segments, was reportable net adjusted to our year-over-year XX.X%

will Now X be September year-to-date discuss I our noted, Ocean. briefly XX, metrics I Unless will referring months River ended reportable to segments, and or XXXX. X

are segment, River capacity relatively the PCDs our flat For year-over-year.

of Adjusted during period. net $XXX the year-to-date European a billion year-over-year beautiful by third $X.X Hathor, strong driven margin the delivery to demand more vessel our XX.X% grew Nile for took by started for itineraries. was quarter, the X-month XX.X% August. of Although end the was Occupancy that yield up the Viking and we XX% gross than sailing

addition the For XX%. $X.X period mainly gross of up increased to September X% And to for margin the April of Viking the XXXX. delivery to Saturn of XXXX compared was due Ocean, yield the increased in Viking capacity of Occupancy X.X% $XXX, net in and previous was the [indiscernible] year. XX.X% Adjusted billion. PCDs the year-over-year, year-over-year

move to sheet. the balance let's Now

XXXX, and $XXX million. undrawn As of of billion an revolver XX, of cash we September facility had and cash $X.X total equivalents

X.Xx X.Xx debt XX, as to was June end, And to net from our of billion. XX, net leverage XXXX, September Our XXXX. of this improved as $X

deferred XX, September of revenue $X billion. was As

changed we our Also on maturity other due maturities last outlook, X and Slide has bond XXXX all and with May maturity bond see in beyond. reported, can which XXXX you current XX, not since in

amortization With this, XXXX to XXXX. confirm our and I'd for debt like

ship increases net $XX main $XXX committed a CapEx of and expected for From is full million capital scheduled of the As full of committed year are the $XXX CapEx $XXX fleet. September the million million principal XXXX, the million of total XX, ship million remainder both perspective financing. And is year $XXX the XXXX, million drivers expenditure for the payments for financing. XXXX. for or about of the full for Ocean or total related the and The quarterly year XXXX in XXXX, in about XXXX the expected changes total committed net are to $XXX committed XXXX CapEx ship and

outlook, I'll business our our that, back it With curves. turn booking to to review Tor including

Thanks, Leah.

now into XXXX. of are all X, booking Let's curves, dive the which November as

consolidated On metrics Slide our for our products. show XX, core we

to capacity in XXXX sold XXXX is note, of as metrics similar This than sold a can shared the few cancellations we of point calendar we of normal. XXXX and experience I you bookings. time. is might As we PCDs will have higher year, out. which season XX% same the advance very booked the at already XX% our the These is the quarter mostly billion end are approach what $X.X we see, last capacity with

be the these resell year advance typically change. we bookings prices causing may last While to lower the minute original rates, rooms, slightly the full than

encouraging. XXXX. to very moving Now look The figures

year, than metric of Our increasing billion XX% the a XXXX. mainly is East. XX%, slightly time demand, we are booked what by in to due and with comparable. conflict than also XXXX same we These of This are already Last capacity XX% strong point advance shared the in we to last slowdown bookings. easier October saw to the but some $X.X is volume quarter, in higher higher at due the season due Middle

for very with from we is Aside and reality bookings it. achieving we this, strong very are are pleased that XXXX,

line which for the This Slide will with bookings of higher curves our is have for sold XX. which next the already will XX% you start sold than Ocean is advance $X.X $XXX to On that rates, last green the billion capacity see the bookings, we Overall, I pleased which cruises. same last with year-over-year, and we $XXX the is year slide, will operating shows of compared year. the our point note are time. I XX% XXXX Notably, at also up the in have was X% very we capacity. XXXX.

you look If XXXX trends at booking now we season. the the for will blue line, see

We sold advance point this about have at year is in which XX% bookings, last $X billion in than higher time.

XX% operating and Our XXXX already of sold. up year-over-year capacity capacity is the is XX%

Regarding for XXXX in season same equaled the the the compared they point to rates, time. $XXX $XXX at

to curves for you we I if the with River see Now move Slide advance which XX, green bookings start will cruises. XXXX, will line. for the is

we more is advance in billion sold XX% have $X.X As last you year. bookings, than can than which see, higher

X% River year-over-year. is for capacity operating up Our

very and $XXX to have on XXXX already to XXXX. So and year XXXX beyond. teams we're to having now little a XXXX sell with Ocean, capacity and great Like are sold that our XX% equal we are compared of rates for $XXX in the with focused

looking the these are line, for XXXX the bookings the blue advanced Now at season.

see, can time. is higher in have bookings, than sold point XX% $X same about you at advance we billion in the XXXX As season which the

operating equal to River In summary, sold. trends X% is good compared to XXXX. XX% for rates these for is already with the $XXX Our XXXX $XXX are year-over-year capacity very and in up

our pleased very advancing are in some some cases, which exceeding these we in expectations. Overall, and, with of metrics all even are line

Now order our Leah some and will color add capacity. book to

Thank you, Tor.

book to Moving and order our updates. capacity

of month the took the Viking we During Sobek. of delivery October,

exercised the our is mentioned, ships Egypt. Nile size, about for for XX-guest which just are in October, options delivery and also XIX this are sailing an ships XX, in In Ocean Tor we vessel As both XXXX. scheduled guests will the ships delivered in cruise by year. These X Ocean River has XXXX is which on that the accommodating agreement XXX XXXX, Ocean be Fincantieri fleet. we built each. Viking And X exercised, for option ships if additional will delivered each an that, lastly, into and entered entire be in shipyard, These similar

see, can growth. thrilled there are going As on further on to we you is Viking, and lot share news at a

we As success to equally results, growth. balance remain our providing This committed we guests. continue our to key deliver to long-term financial and experiences for strong sustainable is unforgettable

back this, now it to remarks. conclude prepared I questions. I'll operator our turn With the take to

And Instructions] today is from first [Operator question coming from JPMorgan. Boss Matthew the

quarter. Great. congrats nice another And on

today? to you demand on the capitalizing if well-defined indicators So in or you Tor, maybe kick XXXX just to for off, the consumer changes backdrop on focus could any notable in elaborate product. forward your that cited And shift

I think we don't see any surprises.

solid we I think have had long-term plan.

plans And -- second what so say. the far, we're coming in [indiscernible]. according really to I is of your I'm sure our I that part And not can got

So please repeat.

XXXX, shifting product for on that. focus talked about your capitalizing you release, in and to the your well-defined So

how just think curves, maybe booking as we you're So about thinking the about 'XX things.

Viking, lots deliver like be an continue we for ships. think that's we think there's I would elderly who And Well, to to on. way the on started I have said think people we experiences unserved and nice we what market of

have We children key don't you But are strong and have that guests like a onboard, and with and as that. ships our that's we points found casino, on very goes allow so don't have have don't the offering, nice. we I product cruise nickel we think noise And a a that people. dime other we the don't point. we As know, our few proud many been in of

points product on. really I on experienced to But when and they lots we are that's great strong ship, they think very even are those profits noise. think produce who Viking lots come of can that relax. working cruisers of a be I a And in it which can when comes ships,

so that ships generation for hydrogen environmentally at now. friendly forth ships, looking it as cells so X fuel can. and be happen also We we as -- will can And we are new from

single-digit pricing, Great. And on up on could think maybe are Ocean capacity high capacity. if digits high Or digits best trends on XXXX relative then how you the your teens mid-single elaborate to maybe, River versus just about Leah, plan. up specifically low composition of double how to

Yes.

I before. it think said we've

do single the -- been evolves, to As booking mid- high digits. curve achieve we able to have we

our things year kind full to that a from year that be continues basis, sell, is we think land. where as that I would would to remains expect expectation, the of

is Wieczynski question from Stifel. next coming The from Steve

Congrats quarter. on very a solid

look we 'XX guys at into curves XX% with your for almost now booking sold as next you year. So and being

Just makes a that in far maybe I XX% on booked trying are how what And to what maybe understand understand look to we historical you're kind to And is position basis. how And too you guys optimal you your your booking of booked point view sense. hope would advance? more -- the trying where too position. would guess call I'm that much I getting

think there as that, year Yes. is an had And to it was we and volatility to of that started That accelerate that the accelerated. was I said makes that, it in quarter given call, introduce election quite had started that is curve. But sense, year -- kind is having quarter's in last Steve. what booking last we some the short-term relates this to

are than to prior And some forward. I think been moving We start will year accelerated to of you normalization what this had that we more COVID. see

way? would little a fair asking we're differently, to you for XX% now, that year about booked sitting -- think a if from probably 'XX. So Is assume I be wouldn't XX% here it bit that

well. a it's achieve to further you how -- be between balance to also It's you want balance as out yes, what and a like yield would booked

how of terms things could those really have a how of sold. see be -- one the a little benefit that on a we -- that's leverages for we But then the now, we marketing we And to that -- able or looking in are bit up throttle So less depends can we how well, year out. forward playing from strong again, throttle is demand are our based we bookings, company you since shaping, Because see on demand are we start as and -- market. right? down where of to also

And at I'm Got this point. Okay. this. to you. you're not But out answer book If I then itineraries, if booked very for you 'XX, got to to trying essentially could. the obviously, second And I we it? to think about sure you're you question, whatever base more about to understand basically to going started think is out customer now capture want best have cabins, guess your XXXX, I'm further well

to understand is where I trying you point time? than have think at what So I'm for this booked stronger booked in where it if would guess today XXXX, is, you're about we been historically

So our and focus that, making XXXX that we they're do that to is our older, shape. They Having remains on out. also strongly -- XXXX guests finishing said do like in sell they do sure know plan. good

cabin there so And segments the also, to they are want, book certain to deal. that to the of keen also the they that are that that like that we them either they have are reflects more -- the early be book want. make who have best make people early to going sure our pricing And itinerary sure

combination isn't a focus But closing then and out also that our strongly XXXX in again, of is 'XX factors. shape. it's So many sure good making

will question next from UBS. from Farley Robin be The

a Just looking per that quarter a booked next day ago, rate. And been for at revenue cruise year. at your XX% growth had

at rate moves we X% down. it point that is that chance advance rate, in about you to move in think And X% How you I'm XX% move are are, I a move at would still potentially booked we is X% XX% there than slightly should where growth typically growth growth clear at up? further rate we're that since number? plus Or rate. that curious, should X%? that that from guys down now should think that the booked you up? have a year expect Or been this it's very that, Now

been I I also, as see grow digits. which perspective, 'XX, the at grow for single and see our a just to Robin, the to And can book our in from far. day, that to mean, continue you can to think we've mentioned, we yield thus that able 'XX and Leah achieve high end of mid- the goal, order is capacity,

a our remains XXXX today Obviously, feel at that. higher XX% capacity you X% know, we increase, XX% good don't guidance. give as stand we that So are where we with goal. booked for with rates about But pretty that

year which, maybe Okay. of advance, the given of the last there year quantify been ships that before what maybe than anything And ask there actually are already yield, on river Egypt ends Is October have in in year occupancy? of I'd would of tougher how XXXX being Nile since percent quantify say, a so anything to up in be definition 'XX. ahead including that then becomes be there and booked far terms book terms maybe with a you x what the Is of lot probably occupancy comparisons year would would in of Egypt you books for a you'd sort at normal the your typical rate? lower on could this impact

rated That feel is product. highest being NPS of about very good is said, actually percentage question. of That great Egypt, percentage actually points. experience. capacity, a our It's we scores. It's that of Egypt couple a as great a one a

move agree. out although is very Egypt with your a is point yields, taken. being itinerary needle quickly. generally well that some very So small won't do sells We great the movements much. it that But there great said,

if a we on the river. have in the I there ago, the Egypt about far And month best I when may were by mean, and add, ships are we

product, So to we and the will are we very economics. are continuing very impressed to is everybody I with There build. good think build. And continue

small, interesting. So but very it's

Didora The of America. next Andrew Bank question will from be from

into in what you still of curious cancellations? Or if weakness seen if sort any seeing that Tor, XXXX some of in do I bookings? seen think it Can Just you're this little Is 'XX we drove -- remarks were more? little a in mentioned you've a there. a bit mostly this that Middle the you Is to seeing to or Egypt? bit see you've you prepared slowdown the East. due dig the recovery conflict in this your trend of

But the don't would it's a the you recovered then, this since well year around I quite has has been curve -- booking slowdown ago. a see it for say. time it think Seen [indiscernible], I

I So very In would that that. there, we're safe. I Egypt all like concern, travel security or about are it's but not who there think We and say feel worried a people set. anything

will for good a term. product So the be long this I think

Got And it. book potential the going seen cost we've And guess just I How customers from in from about think then expect XXXX? you? business. of we positive some you about Okay. heard and as revenues commentary airfare any pretty we to bridge transatlantic revenues with gross their should the health airlines many pressure from net for this the

As you amount air guests can imagine, given demographic, good I our do us. think mean, our book I through a of

have travel that being a I to I place, speaks it mean, think in consumer yields. our the said, to That you I think base. ability one our itinerary see core can with package

and Our the see will, you for through reflect show revenue. our financials can the of know QX, up XX%. course, for yields yields as cost. -- you by our third that look our But I quarter are curves only

is So the the through in team which we're And this through this. is from well, yields. perspective, our managing reflected managing

will from question next Patrick The be Scholes Securities. Truist from

the to quickly to do and asked of related to is updates balance have last thoughts further question from quarter. very perhaps would want improving return balance call what high-class being sheet? on eventual soon a arguably that enviable I a you're or you capital I I Tor, And this sheet. be to that underlevered similar what ask problem, any

Leah. think So ahead, go -- I

Yes.

capital up but we're -- Tor, that And this directed at this framework. us. a balanced overall, I often So for fairly allocation a was committed to comes is question

balance economic a particularly As you cash know large and we've reserve unpredictability said the as in against today's acts maintaining as buffer, on before, sheet environment. a

strong cash a So that stability reserve we that financial provides flexibility. have safety net and big a ensures

One of our the reinvest generate top the so priorities cash we returns. business can strong is that to in

the it opportunity scalable acquisitions sure cash comes said also are the our is it's if it future And right or acquisition we itself. any it's guiding in when brand to investing strong we've as , ready an for and the business ethos. a is presents it's before, within that balance, also accretive margin to complementary and So make principles the then brand that

So return we be reflects long-term the not could but perspective. currently a in capital to are option we dividend or an share strategy to our there that believe shareholders. buybacks, future this contemplating

Okay. question? a follow-up Can I ask

Sure.

in those to been more has your has a periods kind stance hearing heard of to certainly, to extreme the debt than answer just response, an assume than words your this to over that is you to But I it your of X.Xx you competitors seen would but competitors. conservative of EBITDA. net that Is of like industry of term, public time a sort volatility. ranges stance? mouth, sort fair public take historical curious. it times, like put And conservative long And take from think is more your during what peers? this I not to your from From sort about would X normal steady-state to fair that assume When targeting

think period ourselves we we have as targets for provided of -- really not any we what growth. a I haven't in are

reinvested our advantage up sure is focus leverage As returns. I make to we really opportunities, And the the cash is to could think down. that within shareholder generate of take go and our business

The Research. question is Conor next from Cunningham coming Melius from

Maybe following just on up that specifically. question

So cruises. you options exercised some for ocean

trying during the the Just Viking of at better Just it understand, still about, IPO lot core. River outside talked of your we Ocean the and beyond core is is business? than process, to a opportunity much

in evaluating terms opportunities on of in of where curious general. cruising things outside Just stand

Sure.

between of taking ships XXXX. is our order and focus primary on our So delivery now

do But and our that the growing U.K. pretty can North increasing and space for a Zealand. we You and see look markets. attractive as primary as have to the cruising more addressable broadly, our given committed market sourcing we growth significant at from That's white New the English-speaking and well ship. penetration profile you when continue American demand see Australia

As know, penetration is U.S. X%. cruise in only we the

Tor that, did we are said in Having China. speak what about expanding upon

back we expand opportunity see we appeal to addition also to in other our English-speaking with are So guests. China to Asian And in that, markets.

we guests be into But that support priorities. to a market brand happy brand able strong past to do attract that as meaningful So trusted well. that enter our to are quite know well are well and is as we and brand brand, the our as quite a current new products would new that we have those any we

That's hypothetical. bit a of Okay. maybe And helpful. a then

by you look Russia back end, think in vessels that I about the you that X been there. the And that, that pre Ukraine obviously market just general? what maybe had that you were like? any that would if have conflict impacted and think contribution could war conflict in quickly X talk would to bring how Can have you in online,

this one, times of in Tor cruises Russia. one say all I with of is would his think favorite

able we have is Russia that that in plus unfortunate it there. Ukraine. aren't to being That X operated So X in operate ships that we operate said,

we think we would we which those the operate are to I able these over That to if quickly. operation be These into relatively years. were refurbished think able not ships to our being longships. ships put again, I back that be is have said, hope, are

as our not if many we're able I EBITDA think area upside said, They margins operate from that it ago. were of there's That to definitely but they conflict, longship. the again. the to pre at decades built contribute same being is in do course, there

be from will Wells question next The from Fargo. Politzer Dan

First, Ocean. I wanted to on touch

sitting you're XXXX, booked. for Specifically at XX%

up gross is tracking XX%. around Your pricing

when ago. booked X pricing Now was this XX% tracking were you much similar to where pretty months your

there understand highlight? does XXXX. that? mix just Is strength the XXXX you'd itineraries back Or exactly this in kind levels? that it this is better reverting driving What been implicit expectation just So up is relative trying specific end or pricing I'm to to of mean alternatively,

in we oceans, to We deployment. I mind, where the of this So things have really It we had world we last is quarter cruise. keep for were and given X XXXX, with one that sold discussed for out think quickly.

So decide far. 'XX we a that see see in which yields, second did That did world we impact add to And cruise. curves. can the is you what thus our

looked to -- though, world at we again, X we decided XXXX, For we do deployment cruise. have and

pricing happy quite the that for for with to far we yield XXXX, are XX%. Obviously, increases where sold our oceans, we is related price the So some deployment difference of in end at XX% how of we increases sold at are up day. or being that set

good So spot. we're in a

the about versus Or stock. Got question returning it some you that within dry about relative purchases? differently. bit capital it. or coming offering secondary to secondary allocation But things they maybe separately? you own about offering XX% to Obviously, some the to a When relates of you the that was think wanted to in there think sponsors, same do vein do shareholders to market powder. I those And want sponsorship open a capital still September. as I ask have to point, at maybe view the market two you recognize

opportunities I both are -- where think place and organic we inorganic feel are we are at that for there do a growth.

to return And So there that time, plans, do think strong I to contemplated attractive We growth share our is at buybacks option. have in and no that this remain we profile. growth make committed business. either there sure we to are the have an cash pretty do deploying

coming from Stephen [Operator Instructions] is question Stanley. Morgan Grambling The from next

want to about comments longer I look be you'll the on thinking there should helping earlier. line term? through should the margin think, as of expansion? on gross some Is that we anticipating gross specifically, we we shifts If leverage clarify or other think to see margin mix that that -- is drive some your overall something commissions we it's be that I

Yes.

item financials So is the our commissions and line transportation. in

the So it's for part, both plus, air commissions most cost.

we as is I grow business, our think yield. focus our

in inclusive. past, discussed we've the As are all we

our number one be diming, to with and aware to book don't of a meant nickel are believe cetera. is We cruise the they et pricing guests when us. Our that

ancillary course, to years. upon we have revenue, improve able the do over we've been which Of

shore add they thus to add want course, to seen pre and do And yields with want you our far, of do -- post, guests we've optional what excursions. well. From as helps that,

expansion areas. one some So our come from that's those looking definitely to I purely will line think item, difficult But at see. of from margin

that is The see in margin we SG&A. other areas of can expansion, course,

we one is area that that our capacity. see as So business, leverage as to we we can continue continue we that to grow the grow marketing can

other one Fair follow-up. enough. And quick maybe

business having shy for reason, in gave have and your any place? that are there you Just M&A, any outright bit. a whether available away you for you it's potentially cash strategic or that frameworks from little there would models mentioned But tangentially volatility you other framework

I don't on if have you Tor, know, that. any perspective

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have enough diversify, your of it will we're go the a not management. lot I'd catch to for We're also that. to energies. say ] doing. take [ moment, you well you able So that what at to to But -- we're effort And [indiscernible] start tend outside

careful. about careful it, time, should some do be but we will we'll we that. I So be very very think At

question And from the next will be Meredith HSBC. Jensen from

hoping speak more. was you little bit might I a

and little just the touched it's the part, may by over talk ground and you're product could on how as of geography. versus the opportunity, how you the discuss excursion growth you evolve to that the past maybe trends sort support You a And a to purchasing seeing varying and the on business. and work help that with time of if excursion partners bit second

Sure.

been I there. excursion So we've to able shore optional grow from an think perspective,

is world. excursions. to potential to has cities city. the trend their across done post land They've Venice the that they've and augment the continued experience may where and we see if stand. tour. want see they've definitely, guests And been in the do different. They something to pre area And Our walking seen another many We before,

So your X a nights or Prague. or or so post this is X before in cruise, for adding after pre or example, Paris, in

guests And as so with us. those well see offer excursions we do our

our is experience. provide continue So ways to looking as hold. operations think with look even a I combined better the to forward, team team marketing at we And our trends

posts, we else do rated that scores, rate already us optional excursion quite the how So that Because generally and those can we and package offer high. our higher, slightly augment shore guests that experience. our with items cruises, purchase offer do we're will quality from see pres

that [ days to? we dramatically. Maybe Or excluding than quick for ticket is XX given days that might don't total the and pattern Ocean it's, of One there of I cruise on in you know look cruise variation Linh. higher same is ] the addition. River. vary the average, for be river? world the know more Great, sort I cruise, some itinerary And price days past, would all X

That's pretty consistent.

cruises I think as average, Ocean and we look to X XX for it's about forward, XX X. is rivers, nights on to

stayed that So consistent. pretty

closing Viking now at Chairman this other would hand questions at and I Tor no like call the for Hagen, time. were There to back Cruises to CEO remarks.

to Well, call. I in today's in, joining thank everyone for want

have results you I them. pleased will Of course, [ ] share with also And we and outlook. the been pleased hope quite in the with we're

I it's So you. great this. the and good your calls Thank forward I support wish for look in I you we and Viking. all a attendance thank you the -- appreciate many here, day. to like interest

Thank you. conference. today's This does conclude

at this time. You Thank your may disconnect your participation. you for lines