Q1 2024 Viking Holdings Ltd Earnings Call

As a reminder, this call is being recorded.

Lines have been placed on mute to prevent any background noise.

After the Speakers' remarks, there will be a question and answer session.

Speaker Change: He would like to ask a question at that time. Please press star one on your telephone keypad.

Torstein Hagen: I will now take some time to highlight a few of these different First, we maintain a clear focus on our core demographic, which are curious, affluent English-speaking travelers over 55. They have the time, money, and desire to explore the world. In the US, this demographic has the largest spending power of any demographic, holding over 70% of the wealth. And they're also the fastest growing segment of the population, expected to increase from 98 million people in 2020 to 110 million people in 2030.

If you wish to remove yourself from the queue Press star two thank you.

Speaker Change: I would now like to turn the program to your host for today's conference Vice President of Investor Relations Corolla Mitchell E.

Speaker Change: Good morning, everyone and welcome to Viking's first quarter 2024 earnings conference call.

Speaker Change: I'm joined by tour Hagen, Chairman, and Chief Executive Officer, and Leah to lack duck Chief Financial Officer.

Speaker Change: Available during the Q&A session is lean bonds executive Vice President of finance.

Speaker Change: Before we get started please note our cautionary statement regarding forward looking information.

Torstein Hagen: To put things in perspective, we carried about 650,000 guests in 2023. As you see, the opportunity is right. Second, we operate under one brand, Viking, which stands for excellence among our guests and across the industry. Rather than creating a conglomerate of different brands, all our products are a consistent extension of the Viking brand. Being one brand also gives us flexibility and the ability to leverage scale. Third, we're destination focused. We feel strongly that the destination remains the destination, not the ship.

Speaker Change: During the call management May discuss information that is forward looking and involves known and unknown risks uncertainties and other factors, which may cause the actual results to be different than those expressed or implied.

Speaker Change: Please evaluate the forward looking information in the context of these factors, which are detailed in today's press release as well as in our filings with the SEC.

Speaker Change: The forward looking statements are as of today, and we assume no obligation to update or supplement these statements.

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Torstein Hagen: And to that end, we have strategically built small ships, which we have proven to operate efficiently and profitably. Moreover, our research and direct customer feedback continue to indicate that our core demographic prefers smaller chips. Our ships offer quiet, understated elegance. They're uncluttered and comfortable.

Speaker Change: We may also refer to certain non I F. R. S financial metrics, which are reconciled and described in our press release posted on our Investor Relations website.

Brittany: Good morning, my name is Brittany, and I will be your conference operator today. At this time, I would like to welcome everyone to Viking's first quarter 2024 earnings conference call. As a reminder, this call is being recorded. All lines have been placed on mute to prevent any background noise.

Britney: Good morning, My name is Britney and I won't be your conference operator today.

Speaker Change: This time I would like to welcome everyone to Viking's first quarter 2024 earnings conference call.

Speaker Change: Our dot Viking Dot com.

Speaker Change: As a reminder, this call is being recorded.

Tore and Leah will provide a strategic overview of the company a recap of our first quarter results and an update of the current booking environment and order book.

Speaker Change: I have been placed on mute to prevent any background noise.

Torstein Hagen: We call it modern luxury for the thinking person. You will find this same aesthetic across all our ships, creating a familiar comfort wherever you travel with Viking. And lastly, I would add that we are contrarians. We have used periods of economic downturns to secure favorable turns for our future ships, allowing us to achieve competitive prices and attractive finance. And all this brings us to where we are today, a newly listed public company trading on the New York Stock Exchange.

Brittany: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at that time, please press star 1 on your telephone keypad. If you wish to remove yourself from the queue, press star 2. Thank you.

Speaker Change: After the Speakers' remarks, there will be a question and answer session.

Speaker Change: I'd like to ask a question at that time. Please press star one on your telephone keypad.

Speaker Change: We will then open the call for your questions to supplement todays call. We have also prepared an earnings presentation that will also be available on our Investor Relations website. Following this call.

Speaker Change: Sure move yourself from the queue Press Star two.

Speaker Change: Thank you.

Brittany: I would now like to turn the program over to your host for today's conference, Vice President of Investor Relations, Carola Mangiolini. Good morning, everyone, and welcome to Viking's First Quarter 2024 Earnings Conference Call. I am joined by Tor Hagen, Chairman and Chief Executive Officer, and Lea Salaktak, Chief Financial Officer.

Speaker Change: I'd now like to turn the program to your host for today's conference Vice President of Investor Relations Corolla Mitchell <unk>.

Speaker Change: With that I'm pleased to turn the call over to tour tour.

Corolla Mitchell: Good morning, everyone and welcome to <unk> first quarter 2024 earnings Conference call I am joined by Tour Hagen, Chairman and Chief Executive Officer, Andrea <unk>, Chief Financial Officer also available during the Q&A session is lean bonds.

Thank you Carlo.

Speaker Change: Good morning, everyone and thank you for joining us today for our first earnings call as a public company.

Speaker Change: To start today's call I'd like to provide an overview of our business.

Torstein Hagen: I'm proud of our entire Viking family for achieving this major corporate and financial milestone and grateful for the continued hard work and dedication of our guests. On May 3rd, we completed our $1.8 billion IPO, which was priced at $24 per share.

Carola Mangiolini: Also available during the Q&A session is Lien Ban, Executive Vice President of Finance. Before we get started, please note our cautionary statement regarding forward-looking information. During the call, management may discuss information that is forward-looking and involves known and unknown risks, uncertainties, and other factors, which may cause actual results to be different than those expressed or implied. Please evaluate the forward-looking information in the context of these factors, which are detailed in today's press release, as well as in our filings with the SEC.

And reiterate the key points of differentiation that we highlighted during our recent IPO roadshow.

Speaker Change: I could give vice president of finance.

Speaker Change: Before we get started please note our cautionary statement regarding forward looking information.

Speaker Change: Well I can start with December quarter vessels and our vision.

Speaker Change: During the call management May discuss information that is forward looking and involves known and unknown risks uncertainties and other factors, which may cause the actual results to be different than those expressed or implied.

Speaker Change: Travelers would be more about the destination and also more about the local culture.

Torstein Hagen: We raised approximately $246 million in net proceeds for Viking. In the slide here, you can see our post-IPO ownership structure and the economic and voting powers of TPG, CPP investments, the Hagen family, and all of our other investments. Some say having a good public makes you become a different company. I venture to say we are different in this regard as well.

Speaker Change: We saw an opportunity to create a high im travel experience for guests, who will seek more than justification.

Speaker Change: And that would also appeal to mature individuals who want to learn more about his true art on the culture of the <unk>.

Speaker Change: Please evaluate the forward looking information in the context of these factors, which are detailed in today's press release as well as in our filings with the SEC.

Speaker Change: Places that visit.

Speaker Change: Over the past 27 years <unk> grown into one of the world's leading travel companies expanding our fleet from those Florida vessels.

Carola Mangiolini: The forward-looking statements are as of today, and we assume no obligation to update or sublimate this statement. We may also refer to certain non-IFRS financial metrics which are reconciled and described in our press release posted on our investor relations website at ir.viking.com. Tor and Lia will provide a strategic overview of the company, a recap of our first quarter results, and an update on the current booking environment and order book. We will then open the call to your questions. To supplement today's call, we have also prepared an earnings presentation that will also be available on our Investor Relations website following this call. With that, I'm pleased to turn the call over to Tor. Tor?

Speaker Change: The forward looking statements are as of today, and we assume no obligation to update or something to make this statement.

Speaker Change: <unk> 92 states, where they are chips.

Torstein Hagen: My promise to our guests, employees, and to our shareholders is that we will continue to do four things. First, we will continue to delight our guests by offering an excellent travel experience at good value. Second, we will continue to treat all Viking employees as part of our family and keep the family ethos that has been fundamental to our company culture since the beginning. Third, we will continue to be contrarian, emphasizing the importance of a long-term view and a share of the value creation.

Speaker Change: Which we view as floating hotels.

Speaker Change: We may also refer to certain non I S. R. S financial metrics, which are reconciled and described in our press release posted on our Investor Relations website at IR Dot Viking Dot com.

Speaker Change: And we will go travel platform from river cruises to Ocean voyages.

Additions to the end of the World and also in the U S on the Mississippi River.

During this time, we have successfully grown the business in large part because we are so different than others in the travel industry.

Speaker Change: Tore Leah will provide a strategic overview of the company.

Speaker Change: I'll now take some time to highlight a few of these differences.

A copy of our first quarter results and an update of the current booking environment and order book, We will then open the call for your questions.

Speaker Change: First we maintain a clear focus on our core demographic.

Speaker Change: Which are curious affluent English speaking travelers over 55.

Speaker Change: To supplement todays call. We have also prepared an earnings presentation that he will also be available on our Investor Relations website. Following this call.

Torstein Hagen: And lastly, we will continue to do what is right when it comes to the environment with our already fuel efficient river and ocean ships and with our project to create a true zero emission solution. I will now turn the call over to Leah to discuss the financials.

Speaker Change: They have the time money and decided to explore the world.

Speaker Change: In the U S system of graphic has the largest spending power and the demographics holding over 70% of the road.

Speaker Change: With that I'm pleased to turn the call over to tour tour.

Speaker Change: Thank you <unk>.

Speaker Change: And they are also the fastest growing segment of the population expected to increase from 98 million people in 2020 to 110 million people in 2013.

Tor Hagen: Thank you, Corolla. Good morning everyone, and thank you for joining us today for our first earnings call as a public company. To start today's call, I'd like to provide an overview of our business and reiterate the key points of differentiation that we highlighted during our recent IPO roadshow. Viking started in 1997 with four river vessels and a vision that travel should be more about the destination and also more about the local culture.

Speaker Change: Good morning, everyone and thank you for joining us today for our first earnings call as a public company.

Leah Talactac: Thank you, Tor. Good morning, everyone.

Speaker Change: We'll start today's call I'd like to provide an overview of our business.

Speaker Change: To put things in perspective, we incurred about 650000 guests in 2023.

Speaker Change: Andrew.

Andrew: Key points of differentiation.

Andrew: During our.

Speaker Change: As you see the opportunity is right.

Andrew: A recent IPO roadshow.

Leah Talactac: I'll begin with an overview of Viking's results for the first quarter. Unless otherwise noted, my commentary on 2024 comparisons is to the same period in 2023. We are very pleased to have delivered a strong first quarter. On a consolidated basis, total revenue grew 14.2 percent year over year to $718 million, mainly due to an increase in the size of Viking's fleet and higher occupancy. During the first quarter of 2024, capacity PCDs increased by 14.5%, and occupancy was 94%, an improvement of 120 basis points compared to the same period in 2023. As a reminder, we allow up to two guests per cabin, and at times, our guests may even want a single cabin.

Speaker Change: Second we operate under one brand Viking, which stands for excellence among our guests on across the industry.

Speaker Change: Well I can start with December quarter vessels under version.

Speaker Change: So they're more about the destination and also more about the local culture.

Speaker Change: Broadband greater conglomerate or different brands.

Tor Hagen: We saw an opportunity to create a high-end travel experience for guests who seek more than just a vacation and that we should also appeal to mature individuals who want to learn more about history, art, and the culture of the places they visit. Over the past 27 years, Viking has grown into one of the world's leading travel companies, expanding our fleet from those four river vessels to 92 state-of-the-art ships, which may be rather smelting hotels.

Speaker Change: We saw an opportunity creates a high im travel experience for guests who received more than justification.

Speaker Change: All of our products are a consistent expansion of the one <unk> brand.

Speaker Change: Being one brand also gives us flexibility and the ability to leverage scale.

Speaker Change: And that also appeal to mature individuals who want to learn more about his true art on the culture of the places their visits.

Speaker Change: Third we are destination focus who feel strongly that the destination remains a destination not to ship.

Speaker Change: Over the past seven years <unk> grown into one of the world's leading travel companies expanding our fleet from those Florida the vessels.

Leah Talactac: Therefore, we will never exceed 100% occupancy. Adjusted gross margin in the quarter increased 19.1% year over year to $495 million. Net yield in the first quarter was 508, which is the highest net yield we've seen in a first quarter period. Net yield grew by 2.8% compared to the first quarter of 2023. Keep in mind that in 2023, we experienced strong growth in net yield compared to 2019. Our net yield for the full year of 2023 grew by 16.7% compared to the full year of 2019.

Speaker Change: And to that end.

Typically build small ships.

Speaker Change: Which we have proven to operate efficiently unprofitably.

Speaker Change: 92 state of the art ships, which we view slows in hotels.

Speaker Change: Moreover, our research and direct customer feedback continues to indicate that our core demographic prefer smaller chip sizes.

Tor Hagen: And we built our travel platform from river cruises, to ocean voyages, to expeditions to the end of the world, and also in the U.S. on the Mississippi River. During this time, we have successfully grown the business, in large part because we are so different from others in the travel industry. I will now take some time to highlight a few of these differences. First, we maintain a clear focus on our core demographic, which are curious, afternoon, English-speaking travelers over 55. They have the time, money, and desire to explore the world. In the U.S., this demographic has the largest spending power in the country, holding over 70% of the wealth.

Speaker Change: And we will do travel platform from river cruises to Ocean voyages to expedition, so down to the world and also in the U S on the Mississippi River.

Speaker Change: Our ships offer acquired understated elegance, uncluttered uncomfortable where call it modern luxury for the thinking person.

Speaker Change: During this time we have.

Speaker Change: Successfully grown the business in large part because it's different than others in the travel industry.

Speaker Change: You will find this same pathetic across all our ships.

Speaker Change: I'll take some time to highlight a few of these differences.

Speaker Change: Im familiar comfort.

Speaker Change: Ever you traveled with Viking.

Tor Hagen: And they're also the fastest growing segment of the population, expected to increase from 98 million people in 2020 to 110 million people in 2030. To put things in perspective, we carried about 650,000 guests in 2023. As you see, the opportunity is great. Second, we offer it under one brand, Viper, which stands for excellence among our guests and across the industry. Rather than creating a conglomerate of different brands, all our products are a consistent extension of the one Brighton brand. Being one brand also gives us flexibility and the ability to leverage scale. Third, the destination focus.

First we maintain a clear focus on our core demographics.

Speaker Change: And lastly.

Speaker Change: Were contrarians.

Speaker Change: We have used periods of economic downturn to secure favorable terms for our future ships, allowing us to achieve competitive prices and attractive financing.

Speaker Change: Which are two areas.

Speaker Change: On this speaking travelers over 55.

Speaker Change: The other time money and decided to explore the world.

Leah Talactac: The net loss was $494 million for the quarter, which included a loss of $330.5 million related to the net impact of the private placement derivative loss and interest expense related to the Series C preference shares. The Series C Preference Shares converted into Ordinary Shares immediately prior to the consummation of the company's initial public offering, which was after the first quarter of 2024. Also, and as a reminder, we typically incur a net loss in the first quarter due to the seasonality of our business.

Speaker Change: In the U S system of graphic has the largest spending power and the demographic holding over 70% of the route.

Speaker Change: All this brings us to where we are today.

Speaker Change: Really listed public company trading on the New York Stock Exchange.

Speaker Change: I'm proud of our entire <unk> family for achieving this major corporate and financial milestone.

Speaker Change: And they are also the fastest growing segment of the population expected to increase from 98 million people in 2020 to 110 million people in 2013.

Speaker Change: Grateful for their continued hard work and dedication or I guess.

Speaker Change: To put things in perspective.

Speaker Change: On May 3rd we completed our $1 8 billion dollar IPO.

Speaker Change: And about 650000 guests in 2023.

Speaker Change: It was priced.

Speaker Change: Youll see the opportunity is great.

Speaker Change: $74 per share we have raised approximately $246 million of net proceeds for Viking.

Speaker Change: Second we operate under one brand.

Speaker Change: King.

Speaker Change: The answer excellence among our guests on across the industry.

Speaker Change: In the slide here, you can see our post IPO ownership structure, and the economic and voting powers OTG CPP of investments the Hagen family.

Leah Talactac: Having said this, adjusted EBITDA for the first quarter improved more than $46 million compared to last year, mainly due to higher capacity passenger cruise days and higher net yield. Adjusted EBITDA was a loss of $4 million compared to a loss of $51 million for the same period in the prior year.

Speaker Change: Broadband creator conglomerate or different brands.

Speaker Change: All of our products are a consistent expansion of the one right in ground beef.

Speaker Change: Being wound Brown also gives us flexibility and the ability to leverage scale.

Speaker Change: All of our other investors.

Speaker Change: So I'm just going to go public you become a different company.

Tor Hagen: It feels strongly that the destination remains the destination, not the ship. And to that end, we have strategically built small ships, which we have proven to operate efficiently and profitably. Moreover, our research and direct customer feedback continues to indicate that our core demographic prefers smaller chips. Our ships offer quite an understated elegance; they are uncluttered and comfortable. We call it modern luxury for the thinking person. You will find this same aesthetic across all our ships, creating a familiar comfort wherever you travel with a bike.

Speaker Change: Third we are destination focus.

Speaker Change: I wanted to say we are different in this regard as well.

Speaker Change: It's strongly that to destination remains a destination not to ship.

Leah Talactac: Adjusted EBITDA for the 12 months ended March 31, 2024 was $1.14 billion, which exceeded full year 2023 adjusted EBITDA of $1.09 billion. Adjusted EBITDA margin for the last 12 months was 36.1%. Moving to our two reportable segments, river and ocean. For Viking River, occupancy declined slightly from 93.5% in the first quarter of last year to 92.1% this quarter, primarily due to lower occupancy for our Egypt itineraries compared to the first quarter of 2023.

Speaker Change: My promise to our guests employees and to our shareholders.

Speaker Change: To that end.

Speaker Change: We have strategically built small ships.

Speaker Change: We will continue to do four things.

Speaker Change: Which we have proven to operate efficiently unprofitably.

Speaker Change: First we will continue to offset some of our guests by offering an excellent travel experience at good value.

Speaker Change: Moreover, our research and direct customer feedback continues to indicate that our core demographic prefer smaller chip sizes.

Speaker Change: Second we will continue to create all Viking employees as part of our family and keep the family ethos that had been fundamental to our company culture since the beginning.

Speaker Change: Our ships offer quite understated elegance, the unchartered uncomfortable where call it modern luxury for the thinking person.

Speaker Change: Third we will continue to be contrarian, emphasizing the importance of a long term view on shareholder value creation.

Speaker Change: You will find this sympathetic across all our ships.

Speaker Change: Im familiar comfort wherever you travel with Viking.

And lastly, we will continue to do what is right when it comes to the environment with our already fuel efficient driven in relationships.

Tor Hagen: And lastly, I will add that we are consulting. We have used periods of economic downturn to secure favorable terms for our future ships, allowing us to achieve competitive prices and attractive finance. And all this brings us to where we are today, a newly listed public company trading on the New York Stock Exchange. I'm proud of our entire Brighton family for achieving this major corporate and financial milestone and grateful for the continued hard work and dedication of our guests.

Speaker Change: And lastly.

Speaker Change: Contrarians.

Leah Talactac: That said, adjusted growth margin grew 33.6% to $108 million this quarter, and as a result, net yields grew to $609 compared to $593 in the same period last year. Our first quarter river net yields are usually the highest, as we have more Egypt and Vietnam sailings compared to European sailings, as most of the European river sailings started in late March.

Speaker Change: We have used periods of economic downturn to secure favorable terms for our future ships.

Speaker Change: With a project to create a true zero emission solution.

Speaker Change: <unk> is to achieve competitive prices and attractive financing.

Speaker Change: I will now turn the call to layer to discuss the financials.

Speaker Change: All this brings us to where we are today at.

Thank you tore and good morning, everyone I'll begin with an overview of <unk> results for the first quarter unless otherwise noted my commentary on 2024 comparisons are to the same period. In 2023. We are very pleased to have delivered a strong first quarter.

Speaker Change: Our newly listed public company trading on the New York Stock Exchange.

Speaker Change: Our entire <unk> family for achieving this major corporate and financial milestones and are grateful for their continued hard work and dedication I guess.

Leah Talactac: For Viking Ocean, occupancy improved 60 basis points to 94.5%. Adjusted gross margin grew 18.3% to $316 million this quarter, and net yield grew to $439 compared to $425 in the first quarter of 2023. Now moving to the balance sheet. As of March 31, 2024, we had total cash and cash equivalents of $1.7 billion and net debt of $3.9 billion. To this end, our net leverage improved to 3.4 times at the end of Q1 2024 compared to 3.8 times on December 31, 2023. And we are very pleased to have received the ratings upgrade by S&P in May, where Viking Cruises Limited's corporate rating was upgraded to a double B minus from a B plus.

Tor Hagen: On May 3rd, we completed our 1.8 billion dollar IPO. It was priced at $24 per share, and we raised approximately $246 million in net proceeds for Viking. In the slide here, you can see our post-IPO ownership structure and the economic and voting powers of TPG, CPP investments, the Hagen family, and all of our other investors. Some say having a good public company makes you become a different company. I venture to say we are different in this regard as well.

Speaker Change: On may 3rd we completed our $1 billion IPO.

Speaker Change: On a consolidated basis total revenue grew 14, 2% year over year to $718 million, mainly due to an increased emphasize of biking fleet and higher occupancy.

Speaker Change: It was priced bundle.

Speaker Change: $74 per share we have raised approximately $246 million.

Speaker Change: Proceeds for Viking.

Speaker Change: During the first quarter of 2024 capacity PCP increased by 14, 5% and occupancy was 94% an improvement of 120 basis points compared to the same period in 2023.

Speaker Change: Ben the slide here, you can see our post IPO ownership structure and the economics on both empowers Otp G CVP of investments the Hagen family.

Speaker Change: All of our other investors.

Speaker Change: As a reminder, we allow up to two guests per cabin and at times. Our guests may even want a single cabin. Therefore, we will never exceed 100% occupancy.

Some say that really good public you become a different company.

Speaker Change: I would venture to say we are different in this regard as well.

Tor Hagen: My promise to our guests, employees, and to our shareholders is that we will continue to do four things. First, we will continue to delight our guests by offering an excellent travel experience at good value. Second, we will continue to treat all Viking employees as part of our family and keep the family ethos that has been fundamental to our company culture since the beginning.

Speaker Change: My promise to our guests employees under our shareholders is that we will continue to do four things.

Speaker Change: Adjusted gross margin in the quarter increased 19, 1% year over year to $495 million.

Speaker Change: First we will continue to offset some of our guests.

Speaker Change: Net yield in the first quarter was 508, which is the highest net yield we've seen in our first quarter period.

Speaker Change: Offering them excellent trials experienced a good value.

Leah Talactac: This achievement underscores our dedication to financial prudence. As of March 31, deferred revenue was $4.1 billion. Also on this page, you can see our current bond maturity outlook. We have one bond maturity due in May 2025, and all other maturities are in 2027 and beyond. The scheduled principal payments for the remainder of 2024 as of March 31, 2024 are $196 million, and for the full year 2025 are $489 million. The scheduled principal payments for 2025 include the six and a quarter senior notes due in May 2025.

Speaker Change: Second we will continue to treat all Viking employees as part of our family and keep your family for US that has been fundamental to our company culture since the beginning.

Speaker Change: Net yield grew by two 8% compared to the first quarter of 2023 keep in mind that in 2023, we experienced strong growth in net yield compared to 2019, our net yield for the full year of 2023 grew by 16, 7% compared.

Tor Hagen: Third, we will continue to be contrarian, emphasizing the importance of a long-term view and a share of the value equation. And lastly, we will continue to do what is right when it comes to the environment with our already fuel-efficient river and ocean ships and with our project to create a true zero-emission solution. I will now turn the call over to Leah to discuss the financials. Thank you, Tor. Good morning, everyone

Speaker Change: Third we will continue to be contrarian, emphasizing the importance of a longer term view and shareholder value creation.

Speaker Change: And lastly, we will continue to do what is right when it comes to the environment with our already fuel efficient driven in order from ships.

Speaker Change: For the full year of 2019.

Speaker Change: Net loss was $494 million for the quarter, which includes a loss of $335 million related to the net impact of the private placement derivative loss and interest expense related to the series D preference shares.

Speaker Change: And with that project to create a true zero emission solution.

Speaker Change: I will now turn the call to Neal to discuss the financials.

Lea Salaktak: That said, adjusted growth margin grew 33.6% to $108 million this quarter, and as a result, net yields grew to $609 million, compared to $593 million in the same period last year. Our first quarter river net yields are usually the highest, as we have more Egypt and Vietnam sailings compared to European sailings, as most of the European river sailings started in late March.

Lea Salaktak: I will begin with an overview of Viking's results for the first quarter. Unless otherwise noted, my commentary on 2024 comparisons is to the same period in 2023. We are very pleased to have delivered a strong first quarter. On a consolidated basis, total revenue grew 14.2% year over year to $718 million, mainly due to an increase in the size of Viking's fleet and higher occupancy. During the first quarter of 2024, capacity PCDs increased by 14.5%, and occupancy was 94%, an improvement of 120 basis points compared to the same period in 2023. As a reminder, we allow up to two guests per cabin, and at times, our guests may even want a single cabin.

Thank you tore and good morning, everyone I'll begin with an overview of <unk> results for the first quarter.

Leah Talactac: From a committed capital expenditure perspective, for the full year 2024, the total committed ship CapEx is expected to be about $800 million, net of financing $420 million. And for the full year 2025, the total committed ship CapEx is expected to be about $650 million, net of financing $30 million. With that, I'll turn it back to Tor to review our business outlook, including our booking curve.

Speaker Change: Series C preferred shares converted into ordinary shares immediately prior to the consummation of the Companys initial public offering which was after the first quarter of 2024.

Lea Salaktak: For Viking Ocean, occupancy improved 60 basis points to 94.5%, adjusted gross margin grew 18.3% to $316 million this quarter, and net yield grew to $439 compared to $425 in the first quarter of 2023. Now moving to the balance sheet, as of March 31, 2024, we had total cash and cash equivalents of $1.7 billion and net debt of $3.9 billion. To this end, our net leverage improved to 3.4 times at the end of Q1 2024 compared to 3.8 times on December 31, 2023.

Neal: Otherwise noted my commentary on 2024 comparisons are to the same period. In 2023. We are very pleased to have delivered a strong first quarter on a consolidated basis total revenue grew 14, 2% year over year to 718 million mainly due.

Lea Salaktak: And we are very pleased to have received the ratings upgrade by S&P in May, where Viking Cruises Limited's corporate rating was upgraded to a double B- from a B+. This achievement underscores our dedication to financial prudence. As of March 31, Deferred Revenue was $4.1 billion. Also on this page, you can see our current bond maturity outlook. We have one...

Lea Salaktak: Thank you, Tor. Good morning, everyone.

Speaker Change: Also and as a reminder, we typically incur a net loss in the first quarter due to the seasonality of our business.

Lea Salaktak: I'll begin with an overview of Viking's results for the first quarter. Unless otherwise noted, my commentary on 2024 comparisons is to the same period in 2023. We are very pleased to have delivered a strong first quarter. On a consolidated basis, total revenue grew 14.2 percent year-over-year to $718 million, mainly due to an increase in the size of Viking's fleet and higher occupancy. During the first quarter of 2024, capacity PCDs increased by 14.5%, and occupancy was 94%, an improvement of 120 basis points compared to the same period in 2023. As a reminder, we allow up to two guests per cabin, and at times, our guests may even want a single cabin.

Speaker Change: Having said that adjusted EBITDA for the first quarter improved more than $46 million compared to last year, mainly due to higher capacity passenger cruise days and higher net yield adjusted EBITDA was a loss of $4 million compared to a loss of $51 million for the same period in the prior year.

Neal: Two an increase in the size of Viking's fleet and higher occupancy.

Neal: During the first quarter of 2024 capacity PCP increased by 14, 5% and occupancy was 94% an improvement.

Torstein Hagen: As I mentioned earlier, we believe in the importance of taking a long-term view of our business and creating a share of the value. We do not feel we should manage a business for short-term earnings, and as such, we will not be providing guidance in the same manner as many other public companies. In communicating with our bondholders over the years, we have provided our booking curves on a quarterly basis. And we intend to continue this practice when communicating with our equity holders.

Neal: <unk> basis point compared to the same period in 2023.

Speaker Change: <unk>.

Speaker Change: Adjusted EBITDA for the 12 months ended March 31, 2024 was 114 billion, which exceeds full year 2023, adjusted EBITDA of one point over 9 billion adjusted EBITDA margin for the last 12 months was 36, 1%.

Neal: As a reminder, we allow up to two guests per cabin and at times. Our guests may even want a single cabin. Therefore, we will never exceed 100% occupancy.

Lea Salaktak: Therefore, we will never exceed 100% occupancy. Adjusted gross margin in the quarter increased 19.1 percent year-over-year to $495 million. Net yield in the first quarter was 508, which is the highest net yield we've seen in the first quarter period. Net yield grew by 2.8% compared to the first quarter of 2023. Keep in mind that in 2023, we experienced strong growth in net yield compared to 2019. Our net yield for the full year of 2023 grew by 16.7% compared to the full year of 2019.

Neal: Adjusted gross margin in the quarter increased 19, 1% near over year to $495 million.

Torstein Hagen: Looking at this slide here, we are well positioned for 2024 with 91% of our capacity PCDs booked for our core products and $4.6 billion of advanced bookings. This is 15% higher than the 2023 season at the same point in time. 2025 is interesting as well. We are 39% booked for $2.5 billion. This is 27% higher than the 2024 season at the same point of time in 2023. And on the next slide, you will see our ocean current.

Moving to our two reportable segments River in Ocean for Viking River occupancy declined slightly from 93, 5% in the first quarter of last year to 92, 1% this quarter, primarily due to lower occupancy for our Egypt itineraries compared to the first quarter in 2020.

Lea Salaktak: Therefore, we will never exceed 100% occupancy. Adjusted gross margin in the quarter increased 19.1 percent year-over-year to $495 million. Net yield in the first quarter was 508, which is the highest net yield we've seen in the first quarter period. Net yield grew by 2.8% compared to the first quarter of 2023. Keep in mind that in 2023, we experienced strong growth in net yield compared to 2019. Our net yield for the full year of 2023 grew by 16.7% compared to the full year of 2019.

Neal: Net yield in the first quarter was 508, which is the highest net yields we've seen in the first quarter period net yield grew by two 8% compared to the first quarter of 2023.

Neal: Keep in mind that in 2023.

Neal: We experienced strong growth in net yield compared to 2019.

Speaker Change: Three.

Speaker Change: That said adjusted gross margin grew 33, 6% to $108 million this quarter and as a result net yield grew to 609 compared to 593 in the same period last year, our first quarter River net yields are usually the highest as we have more Egypt and Vietnam.

Neal: Our net yield for the full year of 2023 grew by 16, 7% compared to the full year of 2019.

Lea Salaktak: The net loss was $494 million for the quarter, which included a loss of $330.5 million related to the net impact of the private placement derivative loss and interest expense related to the Series C preference share. The Terry C Preferred Shares converted into Ordinary Shares immediately prior to the consummation of the company's initial public offering, which was after the first quarter of 2024.

Lea Salaktak: The net loss was $494 million for the quarter, which included a loss of $330.5 million related to the net impact of the private placement derivative loss and interest expense related to the Series C preference share. The Terry C Preferred Shares converted into Ordinary Shares immediately prior to the consummation of the company's initial public offering, which was after the first quarter of 2024.

Neal: Net loss was $494 million for the quarter, which includes a loss of $335 million related to the net impact of the private placement derivative loss and interest expense related to the series B preference shares.

Speaker Change: On ceilings compared to Europe sailings.

Torstein Hagen: The green line shows the bookings for 2024, and the blue line shows the bookings for 2025. As of May 19, we have sold 91% and 47% of our capacity PCDs for the 2024 and 2025 seasons, respectively. We feel good about these friends, as advanced bookings were 16% and 30% higher, in comparison to the 2023 and 2024 seasons, respectively, at the same point in time. And we're looking at attractive rates. Turning to the next slide.

Speaker Change: Most of the European River ceiling started in late March for.

Speaker Change: For Viking Ocean occupancy improved 60 basis points to 94, 5% adjusted gross margin grew 18, 3% to $316 million this quarter and net yield grew to 439 compared to 425 in the first quarter of 2023.

Neal: Series C preferred shares converted into ordinary shares immediately prior to the consummation of the company's initial public offering which was after the first quarter of 2024.

Lea Salaktak: Also, and as a reminder, we typically incur a net loss in the first quarter due to the seasonality of our business. Having said this, Adjusted EBITDA for the first quarter improved by more than $46 million compared to last year, mainly due to higher capacity passenger cruise days and higher net yields. Adjusted EBITDA was a loss of $4 million compared to a loss of $51 million for the same period in the

Lea Salaktak: Also, and as a reminder, we typically incur a net loss in the first quarter due to the seasonality of our business. Having said this, Adjusted EBITDA for the first quarter improved by more than $46 million compared to last year, mainly due to higher capacity passenger cruise days and higher net yields. Adjusted EBITDA was a loss of $4 million compared to a loss of $51 million for the same period in the

Neal: Also and as a reminder, we typically incur a net loss in the first quarter due to the seasonality of our business.

Speaker Change: Now moving to the balance sheet as of March 31, 2024, we had total cash and cash equivalents of $1 7 billion and net debt of $3 9 billion.

Neal: Having said that adjusted EBITDA for the first quarter improved more than $46 million compared to last year, mainly due to higher capacity passenger cruise days and higher net yield adjusted EBITDA was a loss of $4 million compared to a loss of $51 million for the same period in the prior year.

Speaker Change: And our net leverage improved to three four times at the end of Q1 2024 compared to three eight times on December 31 2023.

Torstein Hagen: We show the same presentation for all of us. On May 19th, we sold 92% and 30% of our capacity PCDs for the 2024 and 2025 seasons, respectively. These advanced bookings were 13% and 19% higher in comparison to the 2023 and 2024 seasons, at the same point in time. And rates here are quite attractive as well.

Neal: <unk>.

Lea Salaktak: Adjusted EBITDA for the 12 months ended March 31, 2024 was $1.14 billion, which exceeded full year 2023 adjusted EBITDA of $1.09 billion. Adjusted EBITDA margin for the last 12 months was 36.1%. Moving to our two reportable segments, river and ocean. For Viking River, occupancy declined slightly from 93.5% in the first quarter of last year to 92.1% this quarter, primarily due to lower occupancy for our Egypt itineraries compared to the first quarter of 2023.

Lea Salaktak: Adjusted EBITDA for the 12 months ended March 31, 2024 was $1.14 billion, which exceeded full year 2023 adjusted EBITDA of $1.09 billion. Adjusted EBITDA margin for the last 12 months was 36.1%. Moving to our two reportable segments, river and ocean.

Neal: Adjusted EBITA for the 12 months ended March 31, 2024 was $1 4 billion, which exceeds full year 2023, adjusted EBITDA of 1.9 billion adjusted EBITDA margin for the last 12 months was 36, 1%.

Speaker Change: And we are very pleased to have received a ratings upgrade by S&P in may where biking cruises limited corporate rating was upgraded to a double b minus from a b plus this achievement underscores our dedication to financial Prudence.

Speaker Change: As of March 31, deferred revenue was $4 1 billion also on this page you can see our current bond maturity outlook. We have one bond maturity due in May 2025, and all other maturities are in 2027 and beyond the scheduled principal payments for the remainder of 2020.

Lea Salaktak: For Viking River, occupancy declined slightly from 93.5% in the first quarter of last year to 92.1% this quarter, primarily due to lower occupancy for our Egypt itineraries compared to the first quarter of 2023. That said, adjusted growth margin grew 33.6% to $108 million this quarter, and as a result, net yields grew to $609 million, compared to $593 million in the same period last year. Our first quarter river net yields are usually the highest, as we have more Egypt and Vietnam sailings compared to European sailings, because most of the European river sailing season started in late March.

Neal: Moving to our two reportable segments River in Ocean for vital River occupancy declined slightly from 93, 5% in the first quarter of last year to 92, 1% this quarter, primarily due to lower occupancy for our Egypt itineraries compared to the first quarter in 2023.

Torstein Hagen: Now, Leah, will you walk us through our order book?

Leah Talactac: Thank you, Tor. Moving to our order book, I will discuss the capacity we expect to come online over the next several years through our new building contract. For our river business, we have 18 river vessels in our order book to be delivered by 2026. Eleven of these vessels would operate in Europe, six in Egypt, and one in Vietnam and Cambodia.

Speaker Change: Four as of March 31, 2024 is 196 million and for the full year 2025 is $489 million. The scheduled principal payments for 2025 includes the six and a quarter senior notes due in May 2025.

Neal: Hi.

Neal: That said adjusted gross margin grew 33, 6% to $108 million this quarter and as a result net deals grew to 609 compared to 593 in the same period last year, our first quarter River net yields are usually the highest as we have more Egypt and Vietnam.

Leah Talactac: We have also signed options for eight additional river vessels, four of which have an exercise date of October 30, 2024, for delivery in 2027, and four which have an exercise date of October 30, 2025, for delivery in 2028. And for the oceans, we have six ships in our order book to be delivered by 2028. In addition, in May 2024, we exercised options for ocean ships 17 and 18, which are both scheduled for delivery in 2029.

Speaker Change: From a committed capital expenditure perspective for full year 2020 for the total committed ship Capex is expected to be about $800 million net of financing $420 million and for the full year 2025. The total committed ship Capex is expected to be about 600.

Neal: Sailings compared to Europe sailings.

Neal: Most of the European River sailing started in late March.

Lea Salaktak: For Viking Ocean, occupancy improved 60 basis points to 94.5%. Adjusted gross margin grew 18.3% to $316 million this quarter, and net yield grew to $439 compared to $425 in the first quarter of 2023. Now moving to the balance sheet, as of March 31, 2024, we had total cash and cash equivalents of $1.7 billion and net debt of $3.9 billion. To this end, our net leverage improved to 3.4 times at the end of Q1 2024 compared to 3.8 times on December 31, 2023. And we are very pleased to have received the ratings upgrade by S&P in May, where Viking Cruises Limited's corporate rating was upgraded to a double B- from a B+.

Neal: The Ocean occupancy improved 60 basis points to 94, 5% adjusted gross margin grew 18, 3% to $316 million this quarter and net deals grew to 439 compared to 425 in the first quarter of 2023.

Speaker Change: $50 million net of financing $30 million with that I'll turn it back to tour to review our business outlook, including our booking curves.

Neal: Now moving to the balance sheet as of March 31, 2024, we had total cash and cash equivalents of $1 7 billion and net debt of $3 9 billion to this and our net leverage improved to three four times at the end of Q1 2024 compared to <unk>.

Thanks Leo.

Speaker Change: As I mentioned earlier, we believe that the importance of taking a long term view of our business and creating shareholder value.

Leah Talactac: We will enter into contracts with the shipyard, which will be subject to certain financing and other conditions. Furthermore, we have the option for two additional ocean ships for delivery in 2030, with an option exercise date of May 30, 2025. In both scenarios, we will be prudent and fact-based in deciding whether we convert options to firm orders, all with the intention of maintaining our market-leading position in rivers and oceans. In summary, we are very pleased with our results for the quarter.

Speaker Change: We do not feel we should monitor business, both short term earnings and as such we will not be providing guidance in the same manner as many other public companies.

Speaker Change: And communicating with our bondholders of theirs, we have provided our booking curves on a quarterly basis.

Neal: <unk> three eight times on December 31, 2023 and.

Neal: And we are very pleased to have received a ratings upgrade by S&P in May where Viking cruises limited corporate rating was upgraded to a double b minus from a b plus this achievement underscores our dedication to financial Prudence.

Leah Talactac: We feel Viking is well positioned to continue to grow in the future through the combination of strong advanced booking trends and capacity expansion through new builds. That concludes our prepared remarks. I will now turn it back to the operator for questions.

Speaker Change: We intend to continue this practice when communicating with our equity holders.

Speaker Change: Looking at the slide here.

Speaker Change: We are well positioned for 2024 with 91% of our capacity a piece of it is booked for our core products of $4 6 billion.

Lea Salaktak: This achievement underscores our dedication to financial prudence. As of March 31, Deferred Revenue was $4.1 billion. Also, on this page, you can see our current bond maturity outlook. We have one bond maturity due in May 2025, and all other maturities are in 2027 and beyond. The scheduled principal payments for the remainder of 2024 as of March 31, 2024 are $196 million.

As of March 31, deferred revenue was $4 1 billion also on this page you can see our current bond maturity outlook. We have one bond maturity due in May 2025, and all other maturities are in 2027 and beyond the scheduled principal payments for the remainder of 2020.

Speaker Change: Although advanced bookings.

Speaker Change: This is 15% higher than the 2023 season.

Operator: At this time, if you would like to ask a question, please press star and one on your telephone keypad. You may remove yourself from the queue by pressing star two. In the interest of time, we do ask that you please limit yourself to one question. And once again, that is star and one. If you would like to ask a question, we'll take our first question from Matthew Boss with JP Morgan. Your line is open. Great, thanks.

Speaker Change: Some point in time.

Speaker Change: But the 25 is interesting as well.

Speaker Change: 39% booked $2 $5 billion.

Neal: As of March 31, 2024 is $196 million and.

Advanced bookings.

Speaker Change: This is 27% higher than the 2024 season at the same point of time in 2023.

Matthew Robert Boss: Great thanks and congrats on a really nice quarter. Thank you.

Speaker Change: And on the next slide.

Speaker Change: You will see our ocean curves.

Torstein Hagen: So, Tor, could you elaborate on current demand trends and just your perspective as we think about the nearly 40 percent booked position for 2025? I think you said that it's about 27 percent higher than the same time a year ago. And then, Leah, just with the business book 91 percent for this year, just help us to think about the yield cadence for the remainder of the year and beyond. I think you've kind of laid out low single digits relative to mid single digit yields historically. Just help us to think about potential conservatism within that metric.

Speaker Change: The Green line shows the bookings for 2024.

The Blue line shows the bookings for 2025.

Speaker Change: As of May 19.

Speaker Change: 91%.

Speaker Change: 4% to 7% of our capacity piece. It is for the 2024 and 25 systems respectively.

Speaker Change: We feel good about these trends.

Speaker Change: The advanced bookings were 16% and 30% higher.

Speaker Change: In comparison to the 'twenty to 'twenty three 'twenty four seasons, respectively. At the same point in time, we are broken at attractive rates.

Torstein Hagen: Should I take a high-level stab at that first, and then maybe I can get some help from Linh? We are on different continents today, so we may have a little coordination issue. And I'd say that our current bookings proceed pretty much as we would have planned. We have no surprises to speak of. Things are going very fine. It's at a very high level. I think Linh can add substance to that statement. Yeah, big tour. So, I see the problem.

Speaker Change: Turning to the next slide.

Speaker Change: So the same presentation browser business.

Speaker Change: On may 19th were sold 92%.

Speaker Change: 30% of our capacity <unk> for 'twenty 'twenty four from 'twenty to 'twenty five seasons, respectively.

Speaker Change: These advanced bookings were 13% and 19% higher in comparison to the 2023 and 24 seasons.

Speaker Change: The standpoint of time and.

Speaker Change: In rates here are quite attractive as well.

Speaker Change: Now I'll now walk through our order book.

Speaker Change: Sure. Thank you tore moving to our order book I will discuss the capacity, we expect to come online over the next several years through our new building contracts.

Linh Banh: I think, you know, we are, as Tor said, where we should be on the curve for what we would prefer. For 2024, we are 91% sold. The remaining inventory really is the 4th quarter. And, as many of us are aware, the 4th quarter is generally a low season. So, we do expect yields to go down slightly as we sell out the rest of the year.

Speaker Change: For our river business, we have 18 river vessels and our order book to be delivered by 2026.

Speaker Change: 11 of these vessels would operate in Europe, six in Egypt, and one in Vietnam and Cambodia. We have also signed options for eight additional river vessels four of which have an exercise date of October 32024 for delivery in 2027, and four which will have an exercise date of <unk>.

Speaker Change: October 32025 for delivery in 2028.

Operator: Thank you. We'll take our next question from Steve Wyskowski, CFO. Your line is open. Yay.

Speaker Change: And for Ocean, we have six ships in our order book to be delivered by 2028. In addition in May 2024, we exercised options for Ocean ship.

Steven Moyer Wieczynski: Yeah, you guys, good morning. And congratulations on becoming a public company. So I guess my first question is around your forward booked position, which, you know, continues to be pretty strong. But if we think about the pricing on your forward bookings, it looks to us like it's kind of running in that, you know, what's called the mid to high single digit range, which is probably, you know, I'd say a little stronger than what we were thinking and what's kind of out there embedded in the consensus today.

Speaker Change: 17, and 18, which are both scheduled for delivery in 2029, we will enter into contracts with the shipyard, which will be subject to certain financing and other conditions.

Speaker Change: Further we have the option for two additional ocean ships for delivery in 2030 with an option exercise date of May 32025.

Steven Moyer Wieczynski: So, I was just wondering how you guys think about yield growth over the long term and maybe any help you can give us as to, you know, maybe what your long-term yield outlook essentially looks like. Thanks.

Speaker Change: In both scenarios, we will be prudent and fact based and deciding on whether we convert options to firm orders all with intention of maintaining our market, leading position and rivers and oceans.

Linh Banh: Hi, this is Linh. If I could take this one quickly, and Leah and Tor, please chime in here.

Speaker Change: In summary, we are very pleased with our results for the quarter, we feel Viking is well positioned to continue to grow in the future through the combination of strong advance booking trends and capacity expansion through new builds that concludes our prepared remarks, I will now turn it back to the operator to take questions.

Linh Banh: Historically, we have been able to grow yields in the mid to high single digits. I think as we look to the future years, we will always price the demand. Currently, based on our curves, you can see that, you know, our prices are higher compared to the prior season at the same time, you know, a good amount. I think our goal is always to try to keep prices fair and mid to high single digits has been something we've been able to achieve historically. And as we look forward, you know, as I said, we would price the demand.

Speaker Change: At this time, if you would like to ask a question. Please press the star and one on your telephone keypad, you may remove yourself from the queue by pressing star two and the interest of time, we do ask that you. Please limit yourself to one question and one.

Speaker Change: Once again that is star one if you would like to ask a question.

Speaker Change: Our first question from Matthew Boss with Jpmorgan. Your line is open.

Torstein Hagen: And could I ask one more question, if I could? So I just want to ask about the decision not to give guidance. And it seems to us that giving guidance for you guys would probably be a lot easier, given your advanced booking curve and the fact you don't really generate onboard revenue. So the yield variability is a lot less versus your cruise peers. So I just want to try to understand that decision.

Matthew Boss: Great Thanks, and congrats on a really nice quarter.

Speaker Change: Thank you.

Tore: So tore could you elaborate on current demand trends and just your perspective as we think about the nearly 40% booked position for 2025 I think you said, that's about 27% higher than the same time a year ago, and then just with the business book, 91% for this year just help us to think about the year.

Tore: On the cadence for the remainder of the year and multiyear I think you've kind of laid out.

Torstein Hagen: Well, you know, we have had bonds outstanding for a few years, and we've sort of stuck to the theme that we should not give guidance then. And I think what we now do by the, I think these booking curves are probably more information than you are likely to get from any of the other cruise line operators. We also give segment information, so I think we try to be quite transparent.

Tore: Low single digits relative to mid single digit yields historically, just how best to think about potential conservatism within that metric.

Speaker Change: Sure I'll take a high level first and then maybe I can get some help from London, we arent, we arent different confidence today, so remember the coordination issues.

Speaker Change: But I would say that our current bookings.

Torstein Hagen: And I think when we see, when you look at the booking codes, I think there will always be some uncertainty up and down. And I don't think we should necessarily speak to that uncertainty. I think that's something that I think analysts and investors can also assess based on the information they're given. So I think that, you know, we like to talk about what we have done rather than what we hope to do. And I think we'll try to stick with it.

Speaker Change: Pretty much as we would.

Speaker Change: Our planned pace.

Speaker Change: No no surprises to speak up and things are going very fine.

Speaker Change: Very high level.

Speaker Change: Hey, Glenn can add substance to that statement.

Speaker Change: Yeah, Thanks, tore so I E.

Glenn: This is Glenn I think for 2025, we are 39% sold and we are seven months out from the start.

Glenn: Start so it's a liquidation could be and I think we are at part that.

Operator: Yeah, and I just want to add to that that, you know, part of the reason is that we are long-term in terms of how we view the business and also in terms of shareholder value creation. And one of the things that makes us successful is that we are flexible and nimble. And we feel that once you start getting guidance, then you start to lose some of that DNA that makes us spiky.

Glenn: Where we should be on the curve.

Glenn: But prefer partway 24, we are 91% sold the remaining inventory really is the fourth quarter.

Glenn: As many of US are aware the fourth quarter is generally a low season. So we do expect yields to go down slightly and sets out the rest of the year.

Operator: And then also, I wanted to add that booking curves are facts. So that's not speculative. That's what we've achieved. And so facts we can stand by rather than forward projection and guidance.

Speaker Change: Thank you we will take our next question from Steve <unk> with Stifel. Your line is open.

Operator: Okay, understood. Thanks, guys. I appreciate it.

Speaker Change: Hey, guys good morning.

Robin Margaret Farley: Thank you. We'll take our next question from Robin Farley with UBS. Your line is open. Um, great.

Speaker Change: And congratulations on becoming a.

Speaker Change: Public company.

Steve <unk>: So I guess my first question is around your forward booked position, which.

Steve <unk>: It continues to be pretty strong.

Steve <unk>: But if we think about the pricing on your forward bookings it looks to us like it's kind of running in that let's call. It mid to high single digit range, which is probably I'd say, a little stronger than what we were thinking what's kind of out there embedded.

Robin Margaret Farley: in advance today, I do think investors probably were thinking that it would enable Viking to give guidance with higher conviction and higher visibility than maybe some other companies that don't have as much visibility. So it is a little bit surprising not to sort of share your visibility in that way. So maybe you could, if you could help us think about the data point that you are sharing, the advance booking per passenger cruise day when you talk about 2025, that being up 12%, maybe if you could help investors just to understand whether that booking curve changes over the course of a year approaching sailing. Because you're familiar with how your booking curve changes over the course of a year approaching sailing.

Steve <unk>: In consensus today so.

Speaker Change: Maybe just wondering how you guys think about yield growth over the long term and maybe any help you can give us as to maybe what your long term yields outlook essentially looks like thanks.

Larry: Hi, This is Larry if I could take this one quickly and began to please chime in here and historically, we have been able to grow yield in the mid to high single digit.

Larry: Think as we look to the future years.

Speaker Change: We will always prices demand currently based on record to say that.

Speaker Change: If prices are higher compared to the prior season at the same time good amount I think are all as always to try to keep prices.

Robin Margaret Farley: Investors are not as familiar with that since other companies don't share that. Is that 12% increase representative of where you expect yield to come in? And if not, could you talk to us about how we should view that 12%, and what our expectations should be given that data point that you're sharing? Thanks.

Speaker Change: No fair.

Speaker Change: And mid to high single digits has been something we've been able to achieve historically and as we look forward.

Speaker Change: As I said, we would price the demand.

Speaker Change: Yes.

Speaker Change: And can I can I ask one more if I could.

Speaker Change: So I just wanted to ask about the.

Speaker Change: The decision to not give guide.

Linh Banh: Hi Robin, this is Linh. So, I think from our perspective as we sell, as we indicated, we do try to price match demand. For oceans, the ocean does operate year round. And so the selling there generally starts earlier, which we can see for 2025 for oceans, we're 47% sold. The price there is about 13% higher year over year. And then for rivers, rivers mainly start this season, especially in Europe, where the bulk of our capacity is in March and April. And for rivers, you can see here the operating capacity we've sold 30% up to 2025. And so the general cadence is our high season and our.

Speaker Change: Guidance and it seems to us that kind of giving guidance for you guys would probably be a lot easier.

Speaker Change: Given your advanced booking curve and the fact, you don't really generate onboard revenue yields.

Speaker Change: <unk> ability is a lot less.

Speaker Change: <unk> your crew's peer so just want to try to understand.

That decision.

We have had the bonds outstanding for a few years.

Speaker Change: The.

Speaker Change: Stocks.

So the theme I appreciate not give guidance.

Speaker Change: I think what we now do by the I think there is booking curves are probably more information.

Speaker Change: And actually from the other cruise line operators, but also give segmental information. So I think we're trying to be quite transparent.

Linh Banh: Higher Cabin generally sells first, and so we do see as we open up the season that pricing is generally higher. And then as we sell into the season, whether that be low season or the lower categories, prices will trend down. I think for 24, you can see that here, where for 24, we're 91% sold, and the prices there may come down a little bit as we sell the rest of 2024, which is really the fourth quarter. But you can see that trend as we continue to sell.

Speaker Change: When we see when you look at the booking curves I think.

Speaker Change: There'll always be some uncertainty the up and down.

Speaker Change: And I don't think we should.

Speaker Change: To speak to that uncertainty.

Speaker Change: I think that's something that I think the analysts and investors come kind of also a SaaS based online smashed Megan sizing.

Speaker Change: We'd like to talk about what we have done broadband market, we hope to do.

Speaker Change: I think we will try to stick to that.

Linh Banh: But in theory, just thinking about prior curves, if every year you sell the higher season and higher price cabins first, and every year, then later on, you're selling the sort of the more average price cabins, wouldn't that be a consistent percent change year over year? And, and if not, I just I, you know, want to make sure that there's not an expectation that your price is going to be up 12%. If you would like, that it's not going to be.

Speaker Change: Yeah, and I, just want to add to that that.

Speaker Change: Part of the reason is we are long term in <unk>.

Speaker Change: So for how we view the business and also in the shareholder shareholder value creation.

Speaker Change: And one of the things that makes US successful is that we are flexible and we are nimble and we feel that once you start giving guidance then you start to lose some of that DNA that it makes us Viking.

Speaker Change: And then also I wanted to add that booking curves are back so thats not speculative that's what we've achieved and so backs, we can standby rather than forward projections and guidance.

Linh Banh: I think that it would be helpful to be clear on that. But just thinking about that year over year, it seems like that would be the case. That would be the case if the base had also moved down last year, so that maybe the percent change would be representative, and if it's not, it would just be helpful to understand that that's not the expectation that investors should have.

Speaker Change: Okay understood. Thanks, guys appreciate it.

Speaker Change: Thank you we'll take our next question from Robin Farley with UBS. Your line is open.

Robin Farley: Great. Thank you.

Speaker Change: Do you want to echo the sentiment I think that given how much further Viking books and advanced today or do you think investors probably were thinking that would.

Robin Margaret Farley: Thank you.

Linh Banh: Generally speaking, you know, we sell based on demand, and we will also have mix and deployment differences year over year as we add new vessels and depending on which itineraries sell first as well. So I understand the question.

Enable viking to give guidance with with higher conviction.

Speaker Change: And higher visibility then then maybe.

Speaker Change: Some some other companies.

Speaker Change: Don't have as much visibility.

Speaker Change: It is a little bit surprising not to.

Speaker Change: Not to have not to sort of share.

Linh Banh: I think it's hard for us to say that the selling patterns will be consistent year over year at the end of the day. But, you know, we are quite pleased with where we are positioned for 2025 today. Prices are up for 25. Prices are up for 24. And, you know, I think, you know, we've seen as well. Historically, we've been able to increase prices in the mid to high single digits.

Speaker Change: Sure your visibility in that way.

Speaker Change: So maybe you could if you could help us.

Tor Hagen: when you look at the booking cards, I think. There will always be some uncertainty up and down. And I don't think we should necessarily speak to that uncertainty. I think that's something that I think analysts and investors can kind of also assess based on the information they're given. So I think that we like to talk about what we have done rather than what we hope to do. And I think we'll try to stick to that.

Neal: When you look at the booking curves I think.

Speaker Change: Thinking about the data point that you are sharing the advance booking per passenger cruise J.

Neal: There always be some uncertainty the up and down.

When you talk about 2025 that being up 12%.

Neal: And I don't think we should.

Speaker Change: Ill speak to that uncertainty I think I think that's something that I think analysts and investors can kind of also assess based on the information <unk> given so I think that.

Speaker Change: Maybe if you could help investors just to understand whether does that booking curve because you're familiar with how youre booking curve changes over the course of the year approaching failing investors are not as familiar with us and other companies don't share that is that 12% increase representative of where you are.

Andrew George Didora: Thank you. We'll take our next question from Andrew Didora, Andrew with Think of America. Your line is open.

Speaker Change: We'd like to talk about what we have done rather than what we hoped to do.

Speaker Change: I think we'll try to stick to that.

Andrew George Didora: Hi, good morning, everyone. Thanks for the questions. Tor, Leah, are there any guideposts you can give us in terms of how you're thinking about net leverage or liquidity targets as you build cash here over the next few years?

Speaker Change: And so you want to add to that that.

Speaker Change: Part of the reason is we are long term.

Speaker Change: Expect.

Speaker Change: Yield to come in and if not if you could talk to us about how we.

Speaker Change: Is that how we view the business and also in the shareholder shareholder value creation.

Speaker Change: We should view that 12%, what our expectations should be given that data point that you're sharing thanks.

Speaker Change: And one of the things that makes US successful is that we are flexible and we are nimble and we feel that once you start getting guidance. Then you start to lose some of that DNA that it makes us Viking.

Torstein Hagen: Yeah, maybe I should, should take that one. We have had a few roadshows lately, and the question has come up there too. And, and there we reported what the net leverage was at the end of last year, 3.7, if I'm not mistaken, now we're down to 3.4. And that is certainly a leverage level where we are, where we are comfortable. So that's that.

Lane: And Robin This is lane, so I think from our perspective as we file.

Tor Hagen: I wanted to add that booking curbs are facts, so that's not speculative. That's what we've achieved, and so facts we can stand by rather than forward projection and guidance.

And then also I wanted to add that booking curves are back. So that's not speculative that's what we've achieved and so tax we can standby rather than forward projections and guidance.

As we indicated we do try to price demand and for oceans oceans does operate year round and so selling their January starts earlier, which you can see for 2025 for oceans by 47% at the pricing there is about 13% higher year over year.

Operator: Okay, understood. Thanks, guys. I appreciate it.

Speaker Change: Okay understood. Thanks, guys appreciate it.

Torstein Hagen: Of course, you can see we are generating a fair amount of cash, so it could go further down if nothing more happens, and that'd be fine too, with buybacks planned of any type. So I think we will have a good base for expanding the business that we have, but it should be profitable expansion, not expansion for the sake of expansion. I think we have the benefit of a great order book, which we have got at good prices. So I think, and then we combine that with a balance sheet, which is probably among the best in the industry. And I think we are in a good position.

Brittany: Thank you. I'll take our next question from Robin Farley with UBS. Your line is open.

Speaker Change: Thank you we'll take our next question from Robin Farley with UBS. Your line is open.

Lane: As we can and then for reverse reverse Naomi starts this season, especially in Europe, where the bulk of our capacity is in March and April and App for River. So you can see your operating capacity.

Robin Farley: Great. Thank you.

Robin Farley: Do you want to echo the sentiment I think that given how much further Viking books and advance today or do you think investors probably were thinking that would.

Lane: We sold 30% of 2025.

Speaker Change: Enables liking to give guidance with with higher conviction.

Lane: So the general cadence is our high season and our.

Speaker Change: And higher visibility then then maybe.

Lane: Higher cabin generally sells first and so we do see as we open up the season that pricing is generally higher and then as we sell into the season, whether that be low season, or the lower categories pricing will trend downward.

Speaker Change: Some some other companies that don't have as much visibility.

Speaker Change: It is a little bit surprising not to.

Speaker Change: Not to have mattresses.

Robin Farley: that don't have as much visibility, so it is a little bit surprising not to share your visibility in that way. So maybe if you could help us think about the data point that you are sharing, the advance booking per passenger cruise day, when you talk about 2025, that being up 12%, maybe if you could help investors just to understand whether that booking curve changes over the course of the year approaching sailing. Because you're familiar with how your booking curve changes over the course of the year approaching sailing.

Speaker Change: Sure your visibility in that way.

Speaker Change: So maybe you could if you could help us.

Lane: I think for 'twenty four you can see that here, where our 24 hour 91%.

Speaker Change: When thinking about the data point that you are sharing the advanced booking per passenger cruise day.

Lane: And the pricing there may come down a little bit as we start to sell the rest of 2024, which is really in the fourth quarter, but you can see that trend as we continue to sell.

Speaker Change: When you talk about 2025 that being up 12%.

Speaker Change: Maybe if you could help investors just to understand whether it does that booking curve because you are familiar with how youre booking curve changes over the course of the year approaching sailing investors, who are not as familiar with that since other companies don't share that is that 12% increase representative of where you are.

Lane: In series just thinking about prior curves. If every year you saw the higher season and higher priced Kevin's first and every year and then later on you are selling the sort of.

Operator: Great. Thank you for that.

Lane: The.

Lane: Average price cabins.

Speaker Change: Expect.

Andrew George Didora: And if I could maybe ask one more on that growth opportunities. I kind of understand the opportunities on the ocean side. I guess just in terms of river growth, you know, over time, you've obviously branched out of Europe into the Nile to Vietnam. And Tor, where do you see incremental opportunities to deploy the 18 river vessels that you currently have on order? And thank you.

Speaker Change: Wouldn't that be a consistent percent change year over year end and if not I just.

Robin Farley: Investors are not as familiar with that since other companies don't share that. Is that 12% increase representative of where you expect yield to come in? And if not, could you talk to us about how we should view that 12%, and what our expectations should be given that data point that you're sharing? Thanks.

Speaker Change: To come in and if not if you could talk to us about how we should view that 12% what our expectations should be given that data point that you're sharing thanks.

Speaker Change: Want to make sure that there's not an expectation that your price is going to be up 12%.

Speaker Change: <unk>.

Speaker Change: Suggests that it's.

Speaker Change: <unk> going to be I think that'd be helpful.

Torstein Hagen: Well, the longships are planned to be deployed on the rivers in Europe. That's the nature of the design.

Lynn: Hi Robin. This is Lynn.

Lane: And Robert This is lane, so I think from our perspective as we establish it.

Speaker Change: To be clear on that but it just thinking about the year over year. It seems like that would be the.

Speaker Change: That will be the case of the base, but also moved on last year, so that maybe the percent change.

Speaker Change: The advocate everyday try to price demand and for oceans oceans that operate year round and so <unk> been selling theyre generally starts earlier, which you can see for 2025 for oceans by 47% for <unk>.

Lynn: So I think from our perspective, as we indicated, we did try to price demand. For oceans, the ocean does operate year-round. And so the selling there generally starts earlier, which we can see for 2025 when the oceans were 47% full. The pricing there is about 13% higher year-over-year. And then for rivers, rivers mainly start this season, especially in Europe, where the bulk of our capacity is in March and April. And for rivers, you can see here our operating capacity; we sold 30% of 2025.

<unk> will be representing the vendor for Tonight.

Torstein Hagen: And I think there's definitely a demand there for that from our existing markets. Of course, we also, as you know, we have an embryonic effort in China, where we have currently deployed four river ships on European rivers to the Chinese source market, and they have good ratings. We're not full yet. This is an area where we see potential, but we should be very careful that we don't overstate it. But I think there is more potential for building river ships, too.

Speaker Change: Helpful too.

Speaker Change: I understand that that's not the expectation that investors should have thank you.

Speaker Change: I think there is about 13% higher year over year and as we can.

Generally speaking.

Speaker Change: We sell based on demand and we will also have mix.

Speaker Change: And then for reverse rigorous NAREIT starts EBIT, especially in Europe, where the bulk of our capacity is in March and April.

Speaker Change: Deployment differences year over year, as we add new vessels and depending on which itinerary self first as well. So I understand the question I think it's hard for us to say that the selling pattern will be consistent year over year at the end of the day alright.

Speaker Change: And as for reverse you can see your operating capacity.

Speaker Change: So 30% of 2025.

Speaker Change: General Peter Aird.

Speaker Change: Our high season, and our <unk>.

Lynn: And so the general cadence is our high season, and our higher cabins generally sell first. And so we do see, as we open up the season, that pricing is generally higher. And then as we sell into the season, whether that be low season or the lower categories, prices will trend downward. I think for 24, you can see that here, where for 24, we're 91% sold. And the pricing there may come down a little bit as we sell the rest of 2024, which is really in the fourth quarter. But you can see that trend as we continue to sell.

Speaker Change: Higher cabin generally felt first and so we do see as we open up the season that pricing is generally higher and then as we sell into the season.

Speaker Change: Alright.

Speaker Change: Quite pleased with where we are positioned for 2025 today.

Operator: Thank you. We'll take our next question from Dan Politzer with Wells Fargo. Your line is open. Hey, good morning.

Speaker Change: <unk> are up 425 prices are up for 24, and I think we've.

Daniel Brian Politzer: Hey, good morning everyone, and congrats on the recent IPO. I wanted to ask the question about bookings in a little bit more granular way. Maybe if you could talk about the difference between river and ocean and how those subsegments track along the booking curve. Because I believe that for the ocean, you guys are tracking up kind of in the mid-teens for 2025, whereas for rivers, you're tracking up kind of in the mid-single digits. So as we think about kind of filling in those curves over the next several quarters, how should we think about maybe the difference in pricing power that you have there?

Speaker Change: Whether that be low season, or the lower categories pricing will trend downwards.

Speaker Change: We've seen as well historically, we've been able to increase prices in the mid to high single digit.

I think for 'twenty four you can see that here, where we're 24 hour 91%.

Speaker Change: Thank you.

Speaker Change: And the pricing there may come down a little bit as we thought that with the rest of 2024, which is really the fourth quarter, but you can see that trend as we continue to sell.

Speaker Change: Thank you we'll take our next question from Andrew <unk> <unk> with Bank of America. Your line is open.

Speaker Change: Hi, good morning, everyone and thanks for the questions.

Robin Farley: In theory, just thinking about prior curves, if every year you sell the higher season and higher price cabins first, and every year then later on, you're selling the sort of the more average price cabins, wouldn't that be a consistent percent change year over year? And if not, I just, you know, want to make sure that there's not an expectation that your price is going to be up 12 percent. If you would suggest that it's, you know, not going to be, I think it would be helpful to be clear on that.

Speaker Change: In theory, just thinking about prior curve is every year you saw the higher season and higher priced Kevin's first and every year than later on your selling those sort of.

Speaker Change: Sure.

Are there any guidepost you can give us in terms of how.

How youre thinking about net leverage or liquidity targets as you build cash here over the next few years.

Speaker Change: The average.

Speaker Change: Average price cabins.

Linh Banh: Sure. Hi, this is Linh.

Speaker Change: Yes, maybe I should sure. Thanks helpful.

Speaker Change: Wouldn't that be a consistent percent change year over year end and if not I just.

Speaker Change: We have had fewer roadshows lately on the question has come up there too.

Linh Banh: So, I think the biggest difference between oceans and rivers is ocean off-break capacity year-round. And so, as we open this season, it generally will open a little earlier than rivers, which is where you see off-break capacity. We've sold 47% of 25 for the oceans already. And for rivers, where, you know, the bulk of our capacity is in Europe, the European river season mainly starts in March-April. And so, there is a seasonality difference, first and foremost.

Speaker Change: Want to make sure that there's not an expectation that your price is going to be a 12% if you will.

Speaker Change: And.

Speaker Change: We reported about the leverage was at the end of last year to $8 seven if im not mistaken now we're down to three four.

Speaker Change: <unk>.

Speaker Change: Suggests that it's.

Speaker Change: I'm not going to be I think that'd be helpful too.

Speaker Change: To be clear on that but just thinking about the year over year. It seems like that would be the.

Speaker Change: And that is certainly less.

Speaker Change: Average level, where we are where we are.

Robin Farley: But just thinking about that year over year, it seems like that would be the case at the base but also moved down last year, so maybe the percent change would be representative. And if it's not, it would just be helpful to, you know, understand that that's not the expectation that investors should have. Thank you.

Speaker Change: Comfortable quite frankly.

Speaker Change: The case of the baseball has moved on last year, so that may be the percent change.

Speaker Change: So that's that's up of.

Speaker Change: Of course, you can see we are generating a fair amount of cash.

Speaker Change: <unk> will be representative and if it's not it would just be helpful too.

Speaker Change: Further down this nothing more happens.

Speaker Change: Understand that that's not the expectation that investors should have thank you.

Linh Banh: The second thing is, as you can see for rivers, we're 30% sold for 2025 at prices of almost $1,000 per day. So for rivers, we generally do see very high season, higher cabin categories, and also itineraries that yield a higher yield; they generally will sell first. We do not expect our yields to stay at almost $1,000 per day. And so, you know, understanding if you just do the math, you know, $4.25 for rivers, we're 6% ahead.

Speaker Change: Define too.

Speaker Change: I think we don't have Venezuela.

Lynn: Generally speaking, you know, we sell based on demand, and we will also have mix and deployment differences year over year as we add new vessels and depending on which itineraries sell first as well. So I understand the question.

Speaker Change: Generally speaking.

Speaker Change: You'll see what our capital investment program is so you can model that out.

Speaker Change: We sell based on demand and we will also have mix.

Speaker Change: For the time being at least we don't have any pounds are paying dividend.

Speaker Change: Appointment differences year over year, as we add new vessels and depending on which itinerary sell first as well. So I understand the question I think it's hard for us to say that the selling patterns will be consistent year over year at the end of the game.

We believe that.

Speaker Change: I found it as a large shareholder.

Speaker Change: So you can't say much better investment opportunities on behalf of this company. So I think.

Speaker Change: Yes.

Linh Banh: But if you kind of step back, looking at the price itself, it's rather high. And I think as we continue to sell the river season and the rest of the season, we will see that come down.

There are no dividend.

Speaker Change: <unk>.

Lynn: I think it's hard for us to say that the selling patterns will be consistent year over year at the end of the day, but you know we are quite pleased with where we are positioned for 2025 today. Prices are up for 25. Prices are up for 24. And you know, I think you and I have seen as well historically that we've been able to increase prices in the mid to high single digits.

Speaker Change: Alright, we are quite pleased with where we are positioned for 2025 today.

Speaker Change: So I think we will have a good base for expanding the business that we have but it should be profitable expansion not expansion for expansion side I think the benefit of.

Speaker Change: Prices are up 25 prices are up 24, and I think Peter we see we've seen.

Speaker Change: <unk> order book, which we have got a good prices.

Speaker Change: Scene as well historically, we've been able to increase prices in the mid to high single digit.

Speaker Change: Alright. Thanks.

Daniel Brian Politzer: I got it. That's helpful. And then just in terms of the balance sheet, right? I think that you guys are obviously generating a lot of cash. And, you know, you already addressed that to some extent, but I mean, high level, next year, you're going to be, I think, net of net of ship financing, you know, your CapEx is only $30 million, you are building cash, is there an impetus or goal to get to investment grade?

Speaker Change: Combine that with the.

Speaker Change: So the bottom sandwiches crop the among the best in the industry.

Speaker Change: Thank you.

Brittany: Thank you, Thank you. We'll take our next question from Andrew Fedora with Think of America. Your line is open.

Speaker Change: Thank you we'll take our next question from Andrew Fedora Dara with Bank of America. Your line is open.

Speaker Change: Brian a good position.

Speaker Change: Great. Thank you. Thank you for that and if I could maybe ask one more just on the growth opportunities that kind of a.

Andrew Fedora: Hi, good morning, everyone. Thanks for the questions. Tor, Leo, are there any guideposts you can give us in terms of how you're thinking about net leverage or liquidity targets as you build cash here over the next few years?

Speaker Change: Hi, good morning, everyone and thanks for the questions.

Speaker Change: Tore.

Speaker Change: Understand the opportunities on the Ocean side, I guess, just in terms of river growth overtime, you've obviously branched out of Europe into the Nile to Vietnam.

Speaker Change: Are there any guidepost you can give us in terms of how.

Speaker Change: How are you thinking about leverage or liquidity targets as you build cash here over the next few years.

Speaker Change: Or where do you see incremental opportunities to deploy the <unk> River vessels that you currently have on order and thank you.

Daniel Brian Politzer: And, you know, as far as capital allocation dividends in share repo don't seem a priority. So, you know, and it seems like the growth capex is accounted for. So what is it that you, how do you think about deploying that cash?

Tor Hagen: Yeah, maybe I should take that one. We have had a few roadshows lately, and the question has come up there too. And there we reported what the net leverage was at the end of last year, 3.7, if I'm not mistaken; now we're down to 3.4. And that is certainly a leverage level where we are comfortable, I think, so that's that. Of course, you can see we are generating a fair amount of cash, so it could go further down if nothing more happens, and that'd be fine too, will have a good base for expanding the business that we have, but it should be profitable expansion, not expansion for the sake of expansion.

Speaker Change: Yes, maybe I should say.

Speaker Change: Thanks Alfred.

Speaker Change: We have had a few roadshows lately on the question has come up there too.

Speaker Change: Okay.

Speaker Change: The long ships are deployed.

Speaker Change: Deployed versus in Europe.

Torstein Hagen: Yeah, I don't want to make any forecasts. But, you can say we never had any ambition to be investment grade. I think we are We are primarily in the business of creating value for our shareholders. I think our bondholders have had a good ride with us, too. Don't get me wrong. But we have said that. A double B rating is not a bad rating to have.

Speaker Change: They're being reported about the Max leverage was at the end of last year.

Speaker Change: The nitro their design.

Speaker Change: And I think there is definitely a demand there for that.

Speaker Change: So then if I'm not mistaken that we're down to three four.

Speaker Change: From our existing markets.

Speaker Change: Assortment at a leverage level, where we are where we are comfortable with.

Speaker Change: Of course, we also.

Speaker Change: We have we have.

Speaker Change: Embryonic effort in China, where we have.

Speaker Change: So that's that's up of.

Speaker Change: Of course, you can see.

Speaker Change: Currently deploying Florida, where ships.

Torstein Hagen: I think it's, we have to optimize the capital structure, so I don't see any. None of us currently have any stated ambition of becoming investment grade on the bond side. I think we have opportunities, investment opportunities that we'll make use of, and that'll be it. I think the financing we get as a double B, double B minus now is good enough.

Speaker Change: We are generating a fair amount of cash.

Speaker Change: And European on European Rivers to the Chinese source market.

Speaker Change: Further down the smelting more outcomes.

Speaker Change: Define too.

Speaker Change: They have good ratings, we are not fully yet.

Speaker Change: I think we don't have Venezuela.

Speaker Change: This is an area, where we see potential.

You will see more of our capital investment program is so you can model that out.

Speaker Change: There should be very careful up it onto don't overstated.

Sure.

Speaker Change: For the time being at least we don't own it sounds okay and dividend.

Speaker Change: But I think there is more potential for building <unk> Sir.

Speaker Change: Believe that.

Speaker Change: I found it as a large shareholder and most of them I think.

Come to much better investment opportunities on behalf of this company.

Speaker Change: Great. Thank you.

Speaker Change: Thank you we'll take our next question from Dan <unk> with Wells Fargo. Your line is open.

Speaker Change: So I think.

Speaker Change: There are no dividend.

Operator: Got it. Thanks so much for all the detail.

Speaker Change: Hey, good morning, everyone and congrats on the recent IPO.

Speaker Change: Buybacks.

Speaker Change: So I think we will have a good base for expanding the business.

Dan <unk>: I wanted to ask a question about bookings and a little bit more granular granular manner, maybe if you could talk about the difference between river in Ocean and how those.

Meredith Jensen: Thank you. We'll take our next question from Meredith Jensen with HSBC. Your line is open. Hi, good morning. I was wondering...

Tor Hagen: I think we have the benefit of a great order book which we have got at good prices. So I think, and I may combine that with the balance sheet, which is probably among the best in the industry. And I think we're in a good position.

Speaker Change: The profitable expansion market expansion brusque option side I think.

Meredith Jensen: Hi, good morning. I was wondering if you could speak a little bit about the excursion business and how many people are taking advantage of that, and sort of the economics that go into it as you build out some of those other trips that your loyal guests can take advantage of. That would be great. Thank you.

Speaker Change: Ralph benefit.

Speaker Change: Order book, which we have got very good prices.

Dan <unk>: Sub segments track, along the booking curve because I believe that for Ocean. You guys are tracking up kind of in that mid teens for 2025, whereas reverted youre tracking up kind of mid single digits. So as we think about kind of filling in those curves over the next several quarters, how should we think about maybe the difference in pricing power.

Speaker Change: I think I think.

Speaker Change: Combine that with the.

Speaker Change: For the balance of which is called the among the best in the industry, but I think Brian a good position.

Operator: Great. Thank you for that.

Speaker Change: Great. Thank you for that and if I could maybe ask one more just on the growth opportunities I kind of understand the opportunities on the ocean side I guess just in terms of river growth over time, you've obviously branch out of Europe into the Nile to Vietnam part.

That you have there.

Linh Banh: Hi Marius. I think, you know, when we speak about our excursion business, it's twofold. So we have pre and post cruise extensions, which are packages that you can add to your cruise before or after your cruise. It's a couple of nights at a hotel with some tours that may be involved.

Lane: Sure Hi, This is lane so I think the biggest difference between oceans and rivers is ocean operate year round and so as we open this season.

Operator: And if I could maybe ask one more on those growth opportunities. I kind of understand the opportunities on the ocean side. I guess just in terms of river growth, you've obviously branched out of Europe into the Nile to Vietnam. And where do you see incremental opportunities to deploy the 18 river vessels that you currently have on order? And thank you.

Linh Banh: And we have a variety of packages that you can purchase; up to almost 40% of our guests opt for that. And then also, of course, you know, what you have for others, which are optional excursions. I think it's very important for us to note that Viking is an all-inclusive product. That is our business model. We believe in providing our guests with a package so that they know well ahead of time what the costs are, and what's included.

Speaker Change: Where do you see incremental opportunities to deploy the <unk> River vessels that you currently have on order and thank you.

Lane: Generally we'll open a little earlier than rivers, which is where you see opera.

Tor Hagen: Well, the long ships are planned to be deployed on the rivers in Europe. That's the nature of the design.

Speaker Change: Well the long ships are deployed.

Speaker Change: <unk> capacity at we've sold 47% at 25 for oceans already and for rivers, which.

Speaker Change: Deployed versus in Europe, that's a nature of the.

Speaker Change: It drove our design.

The bulk of our capacity is in Europe.

Speaker Change: And I think there is definitely a demand for that.

Speaker Change: The European River season, mainly start in March April and so there is a seasonality difference.

Speaker Change: From our system markets.

Tor Hagen: And I think there's definitely a demand there for that from our existing markets. Of course, we also, as you know, we have an embryonic effort in China where we have currently deployed four riverships on European rivers for the Chinese source market. And they have good ratings.

Speaker Change: Of course, we also.

Speaker Change: First and foremost.

Speaker Change: Yes.

Speaker Change: Embryonic effort in China.

Speaker Change: The second thing is as you can see our rivers.

Speaker Change: We have.

Speaker Change: 30% sold for 2025 at pricing up almost a $1000 per day. So for rivers, we generally do see Barry.

Speaker Change: We're currently deploying four dealerships.

Speaker Change: And European on European drivers to the Chinese source market.

Speaker Change: Good ratings were not fully yet.

Tor Hagen: We're not full yet. This is an area where we see potential, but we should be very careful that we don't overstate it. But I think there is more potential for building riverships in the future.

Linh Banh: But, of course, guests can also augment their earnings with things such as pre- and post-trip excursions. And so from an optional excursion perspective, we have seen that grow over the years, which, you know, all these things have added to what you see as our net yield to date. Last year, we had net yields of almost $500 per day, which is quite strong from our perspective.

Steven: Hi, Steven higher cabin categories, and also itineraries that yield higher yield.

Speaker Change: As an area, where we are.

Speaker Change: <unk> potential.

Speaker Change: It should be very careful that bit onto don't overstated.

Speaker Change: <unk> will sell first.

Speaker Change: Do not expect our yields to stay at almost $1000 per day.

Speaker Change: But I think there is more potential for building the infrastructure.

Speaker Change: And so understanding if <unk> 425 for rivers were 6% ahead, but.

Speaker Change: Great. Thank you.

Brittany: Thank you. We'll take our next question from Dan Pulitzer with Wealth Fargo. Your line is open. Hey, good morning.

Speaker Change: Thank you we'll take our next question from Sam Poser with Wells Fargo. Your line is open.

It is kind of step back looking at the pricing itself rather high.

Dan Pulitzer: Hey, good morning, everyone, and congrats on the recent IPO. I wanted to ask the question about bookings in a little bit more granular way. Maybe if you could talk about the difference between river and ocean and how those subsegments track along the booking curve, because I believe that for the ocean, you guys are tracking up kind of in the mid-teens for 2025, whereas for rivers, you're tracking up kind of in the mid-single digits. So as we think about kind of filling in those curves over the next several quarters, how should we think about maybe the difference in pricing power that you have there?

Speaker Change: And I think as we continue to sell the <unk> season, and the rest of this season, we will see that come down.

Meredith Jensen: Great. I have one additional question. I know you all are very deliberate about languages and how the comfort level of the gas in terms of being on ship. I was wondering, just looking at, for example, the number of listings in certain languages that you advertise for on LinkedIn, what other sort of areas or base of communities and languages that you might think would be an opportunity long-term outside of China, which we know is another long-term area that you're interested in.

Speaker Change: Hey, good morning, everyone and congrats on the recent IPO.

Sam Poser: I wanted to ask the question about bookings and a little bit more granular granular manner, maybe if you could talk about the difference between river in Ocean and how those.

Speaker Change: Got it that's all.

Speaker Change #100: Helpful. And then just just in terms of the balance sheet right I think that you guys, obviously, you're generating a lot of cash.

Those sub segments track, along the booking curve because I believe that for Ocean. You guys are tracking up kind of in that mid teens for 2025, whereas river to your tracking up kind of mid single digits. So as we think about kind of filling in those curves over the next several quarters, how should we think about maybe the difference in pricing power.

Speaker Change #101: And you already addressed that to some extent, but I mean high level next year youre going to be I think net of net of ship financing. Your capex is only $30 million. You are building cash is there any impetus or goal to get to investment grade.

Speaker Change #101: And.

Speaker Change #101: As far as the capital allocation dividends and share repo don't seem a priority so.

Speaker Change: Sure that you have there.

Speaker Change #101: And it seems like the growth Capex is accounted for so what is it that you have.

Lynn: Sure. Hi, this is Lynn.

Lane: Sure Hi, This is lane, so I think that the biggest difference between oceans and rivers is ocean operate year round and so as we open the season.

Linh Banh: I think at this stage, Meredith, you know, the English speaking language is, you know, our main focus. And as Tor mentioned, Mandarin speaking is in this embryonic stage.

Speaker Change #101: Do you think about deploying that cash.

Lynn: So, I think the biggest difference between oceans and rivers is ocean operates year-round. And so, as we open this season, it generally will open a little earlier than rivers, which is where you see operating capacity. We sold 47% of 25 for oceans already. And for rivers, which the bulk of our capacity is in Europe, the European river season mainly starts in March, April. And so, there is a seasonality difference, first and foremost, second thing is as you can see for rivers we're 30 sold for 2025 at pricing of almost a thousand dollars per day so for rivers we generally do see very um high season higher cabin categories and also itineraries that yield a higher yield they generally will sell first we do not expect our yields to stay at almost a thousand dollars per day um and so you know understanding if you just do math you know for 25 for rivers we're six percent ahead but if you kind of step back looking at the pricing itself it's rather high um and i think as we continue to sell the river season and the rest of the season we will see that come down

Linh Banh: Beyond that, could there be other opportunities? And other languages, there could be, but that would be further out. I think for the moment, we were going to focus on those two languages.

Speaker Change #101: Yes.

Speaker Change #102: I don't want to make any forecast but.

Speaker Change: Generally we'll open a little earlier than rivers legislator AUC.

Speaker Change #102: But it is.

Speaker Change #102: We've never had an ambition to be investment grade I think we are.

Speaker Change: Grain capacity at we've sold 47% at 20, Viper oceans already and for our rivers, which.

Speaker Change #102: We are primarily in the business of creating value for our shareholders bondholders have other good ride with us don't get me wrong.

Speaker Change: The bulk of our capacity is in Europe.

Operator: Awesome. Thanks so much, Leah.

Speaker Change: The European rivers season, mainly start in March April and so there is a seasonality difference.

Speaker Change #102: But.

Speaker Change #102: We have said that.

Stephen White Grambling: Thank you. We'll take our next question from Stephen Grambling with Morgan Stanley. Your line is open. Hey, thanks.

Speaker Change #102: B double.

Speaker Change #102: <unk> is not about ratings ratings I think it's we have to.

Speaker Change: First and foremost.

Speaker Change: The second thing is as you can see our rivers, where 30% sold for 2025 at pricing up almost a $1000 per day. So the reverse we generally do see Barry.

Stephen White Grambling: Hey, thanks. As you span into the ocean over the next few years, can you talk about how the itineraries are potentially going to change in thinking through either new locations or duration?

Speaker Change #102: Optimize the capital structure side I don't see on that.

Speaker Change #102: Nonetheless it is.

Speaker Change #102: We don't currently have in the states and the ambition of becoming investment grade on the on the bond side I.

Speaker Change #102: I think we have opportunities investment over to corporate and <unk>.

Speaker Change: Hi, Stephen Hi, Kevin categories, and also itineraries that yield higher yield generally where we sell first.

Speaker Change #102: The.

Torstein Hagen: I think the way we are, we pretty much cover the world, I would say. So I think we'll be more of the same. Of course, in the short term, you can see some issues related to what happened in the Red Sea, and we are dealing with that properly, I think. But I think, apart from that, I don't think we'll see much change. It'll be more of the same.

Speaker Change #102: Now that I think.

Speaker Change #102: Financing, we've got being a double D.

Speaker Change: Don't expect our yields to stay in almost $1000 per day.

Speaker Change #102: To remind us all is.

Speaker Change #102: Good enough.

So understanding <unk>, 425% the rivers.

Speaker Change #103: Got it thanks, so much for all the detail.

Speaker Change #102: Okay.

Speaker Change: Or 6% ahead.

Speaker Change #104: Thank you we'll take our next question from Meredith Jensen with HSBC. Your line is open.

Speaker Change: It is kind of step back looking at the pricing itself rather high.

Speaker Change: And I think as we continue to sell will be bandwidth, even and the rest of this season, we will see that come down.

Meredith Jensen: Hi, Good morning, I was wondering if you could speak a little bit about.

Meredith Jensen: The excursion business and how many people are taking advantage of that and sort of the economics that go into it as you build out some of those other trips that your your loyal guests can take advantage of that.

Dan Pulitzer: got it uh that's helpful and then just just in terms of the balance sheet right i think that you guys obviously you're generating a lot of cash um and and you know you already addressed that to some extent but i mean high level you know next year you're you're going to be i think net of net of ship financing you know your capex is only 30 million dollars you are building cash is there an impetus or goal to get to investment grade um and you know as far as the capital allocation dividends and share repo don't seem a priority so you know and it seems like the growth capex is accounted for. So what is it that you, you know, how do you think about deploying that cash?

Speaker Change: Got it that's helpful. And then just in terms of the balance sheet right. I think that you guys, obviously, you're generating a lot of cash.

Torstein Hagen: Of course, you can see for the Chinese market, it's a question of what product we can offer them. And we have one joint ventureship where we have a 10 percent interest. That could be deployed slightly differently. That could be an expansion opportunity to different markets, I would say.

Speaker Change: And you already addressed that to some extent, but I mean high level next year youre going to be I think net of net of ship financing. Your capex is only $30 million. You are building cash is there any impetus or goal to get to investment grade.

Speaker Change #106: That would be great. Thank you.

Primarily yes.

Speaker Change #107: Thank you.

Speaker Change #108: We speak about our extrusion business is twofold that we have.

Speaker Change: And.

Speaker Change #109: Pre and post credit extension, which art I.

Speaker Change: As far as the capital allocation dividends and share repo don't see them a priority so.

Packages that you can add to your crude before or after.

Linh Banh: Yeah, and I also wanted to add, you know, so when we think about our ocean capacity coming online, we will continue to deploy in the regions that we are, you know, small ship experts in, rather than being largely Caribbean focused. But I also wanted to point out that.

Speaker Change: And it seems like the growth Capex is accounted for so what is it that you how.

Speaker Change #109: It's a couple of nights that hotel with some toward that may be involved and.

Speaker Change: How are you thinking about deploying that cash.

Speaker Change #110: Yes, we have a variety of packages that you can purchase up to almost 40% of our guests do opt for that and then also of course, what you had for others, which is optional excursion I think it's very important to note that Viking is an all inclusive.

Tor Hagen: Yeah, I don't want to make any forecasts. But, but the truth is that we never had any ambition to be investment grade. I think we are primarily in the business of creating value for our shareholders. I think our bondholders have had a good ride with us, don't get me wrong. But we have said that a double B rating is not a bad rating to have. I think we have to optimize the capital structure, so I don't see any... None of us, we don't currently have any stated ambition of becoming investment grade on the bond side. I think we have opportunities, investment opportunities that we'll make use of, and that'll be it. I think the financing we get as a double B, double B minus now is good enough.

Speaker Change: Yes.

Speaker Change: I don't want to make any forecast but.

Speaker Change: It is.

Speaker Change: We've never had an ambition to be investment grade I think we are.

Linh Banh: Um, we do operate year round in certain regions. So, for example, in search of the northern lights, you wouldn't expect that we, you know, people would want to go there in the off season, but they do. Then they look for the northern lights, and then also in the med, where they're in the quiet season, which I guess also appreciate. So, given just the type of demographic and the people that are drawn to our products, they know that, you know, in times where you wouldn't necessarily think people would travel to certain regions. That's when they know it's best to go. So, based on just that difference, we feel that there's ample opportunity for our oncoming fleet.

Dan Pulitzer: Got it. Thanks so much for all the detail.

Speaker Change: We are primarily in the business are creating value for our shareholders bondholders have other good drivers so don't get me wrong.

Speaker Change #110: That is our business model, we believe in providing our guests with a package that they know well ahead of time, what the costs are with included.

Speaker Change: But.

Speaker Change: We have said that.

Speaker Change: Double b rating as.

Doug: Doug will be writing as noted above rating ratings.

Speaker Change #110: And but of course guests can also augment their.

Doug: We have to optimize the capital structure side I don't see on there.

Speaker Change #110: <unk>, our crews with things such as proposed and then off shore excursion and so from an object surgeon perspective, we have seen that grow over the years.

Doug: Nonetheless.

Doug: We don't currently have any stated ambition of becoming investment grade on the bond side I.

Doug: I think we have opportunities for investment over to corporate.

All of these things have added to what you see is our net yield to date last year.

Speaker Change: <unk> will make yourselves.

Speaker Change: And.

Speaker Change: And that.

Speaker Change: I think the financing we've got being a double b.

Speaker Change #110: And what that $500 per day, which is quite strong from our perspective.

Speaker Change: I will remind us all is.

Speaker Change: Good enough.

Stephen White Grambling: And perhaps to follow up on river cruising, and for those less familiar with it, what are some of the competitive barriers to entry for this market? And how might the operating leverage of river cruising differ versus cruise? In other words, do you generally expect more or less flexibility in the cost structure versus ocean?

Speaker Change #111: Great. One one additional question I know you all are very deliberate about languages, and and how sort of the comfort level of the gas in terms of being on ship.

Speaker Change: Got it thanks, so much for all the detail.

Speaker Change: Okay.

Brittany: Thank you. We'll take our next question from Meredith Jensen with HSBC. Your line is open. Hi, good morning.

Speaker Change: Thank you we'll take our next question from Meredith Jensen with HSBC. Your line is open.

Meredith Jensen: Hi, good morning. I was wondering if you could speak a little bit about the excursion business and how many people are taking advantage of that, and sort of the economics that go into it as you build out some of those other trips that your loyal guests can take advantage of.

Meredith Jensen: Hi, Good morning, I was wondering if you could speak a little bit about.

Speaker Change #112: I was wondering.

Speaker Change #113: Just looking at for example, the number of listings in certain languages that you advertise four on Linkedin.

Meredith Jensen: The excursion business and how many people are taking advantage of that.

Linh Banh: Yeah, I think, go ahead.

Speaker Change #114: Other other sort of areas are.

Speaker Change: The economics that go into it as you build out some of those other trips that your your loyal guests can take advantage of that.

Linh Banh: Um, well, from a river perspective, I think, you know, what sets us apart here is just our scale, the fact that we have identical vessels and that there are many of them. So, from a competitive advantage perspective, I think it would be difficult for people to enter. Into that space, and given that we are over 50% of the market share also, so we have great brand awareness from a river perspective. Also, the fact that we have the docking locations that we either have long-term leases or control; we have about 97 of them and then also our forward booking curves. So, our forward booking curves give us flexibility into what itineraries and locations are selling well. So, we're able to plan for the future much earlier than others and secure those resources and secure those docking locations.

Base of <unk>.

Speaker Change #114: Communities and languages that you might think would be an opportunity long term outside of China, which we know is another long term area that you are interested.

Speaker Change: That would be great. Thank you.

Marius: I think, you know, when we think about our excursions, there's this twofold. So we have pre and post cruise extensions, which are packages that you can add to your cruise before or after your cruise. It's a couple of nights at a hotel with some tours that may be involved.

Marius: Hi Marius. I think, you know, when we think about our excursion business, it's twofold. So we have pre and post cruise extensions, which is. That is our business model. We believe in providing our guests with a package that they

Speaker Change: Hi, there yet and I think when we think about our exposure there chip.

Meredith Jensen: I think at this stage Meredith.

Speaker Change #115: English speaking language is our main focus.

Speaker Change: So we have pre and post credit extension, which arc.

Speaker Change #116: And as Tom mentioned that Mandarin speaking is an embryonic stage beyond that could there be other opportunities.

Speaker Change: Is that you can add to your free thus far out there.

Speaker Change: A couple of nights at our hotels.

Speaker Change: And toward that may be involved and.

Marius: And we have a variety of packages that you can purchase. Up to almost 40% of our guests do opt for that. And then also, of course, you know, what you have for others, which are optional excursions. I think it's very important for us to note that Viking is an all-inclusive product. That is our business model. We believe in providing our guests with a package that they will enjoy.

Speaker Change #116: In other languages, there could be but that would be further out I think for the moment, we are going to focus on those two languages.

Speaker Change: We have a variety of packages that you can purchase up to almost 40% of our guests opt for that and then also of course.

Speaker Change #117: Awesome. Thanks, so much.

Speaker Change #117: Yes.

Speaker Change: For others, which is our Culex version I think it's very important to note that <unk> is an all inclusive price.

Speaker Change #119: Thank you we'll take our next question from Stephen Grambling with Morgan Stanley. Your line is open.

Speaker Change: That is our business model the believe in providing our guests with a package that they.

Stephen Grambling: Hey, thanks.

Speaker Change #120: As you stated the ocean over the next few years can you talk to how the itineraries are potentially going to change both in thinking through either new locations into our duration.

Torstein Hagen: Thank you. We have reached out a lot of times for questions. I would now like to turn the call back over to Thor Hagen, Vikings Chairman and CEO, for closing remarks.

Torstein Hagen: Well, I want to thank everyone for joining us. And that's what I call our Virgin earnings call for our new shelter. I thank you for your support and interest in Viking. I wish you a great day.

Speaker Change #121: Hi, Thanks.

The way we are we pretty much cover the cover the world I would say.

Speaker Change #121: So I think it will be more of the same.

Speaker Change #122: Of course in the short term.

You can see some issues related to do what's happened.

Speaker Change #122: The Red Sea.

Speaker Change #122: Dealing with us properly I think.

Speaker Change #122: But.

Speaker Change #122: <unk>.

Speaker Change #122: But I think apart from that I don't think we will see much much change has been more of the same quarters, you can say for the for the.

Speaker Change #122: For the.

Speaker Change #123: The Chinese market is a question of what.

Speaker Change #124: Our product can we offer them.

Speaker Change #124: And we have one joint venture ship, where we have a 10% interest.

Speaker Change #125: It could be deployed slightly different today that could be expansion opportunities.

Speaker Change #124: To the different markets.

Speaker Change #124: Sure.

Speaker Change #126: Yes, and I also want to add.

Speaker Change #126: So when we think about our ocean capacity coming online we will continue to deploy in the regions that we are small ship experts at.

Speaker Change #126: Rather than being largely Caribbean focus, but I also wanted to point out that we.

Speaker Change #126: We do operate year round in certain.

Speaker Change #127: And so for example in search of Northern Light you wouldn't expect you would not expect that.

Speaker Change #127: We would want to go there in the off season, but they do within the look for the Northern light and then also in the med where they're in a quiet season with our guests also appreciate so.

Speaker Change #127: Given just the type of demographic and the.

Speaker Change #127: People that are drawn to our products they know that.

Speaker Change: Okay, either new locations into our duration.

Speaker Change #127: In times, where you wouldn't necessarily think people would travel to certain regions thats when they know it's best to go.

Marius: Um, I think the way we are, we pretty much cover the world, I would say. So I think we'll be more of the same. Of course, in the short term, you can see some issues related to what happened in the Red Sea, and we are dealing with that properly, I think. But I think, apart from that, I don't think we'll see much change, more or less than what you can see for the, for the, for the, for the, uh,

Speaker Change #128: So based on just that difference we feel that there is ample opportunity for our ongoing fleet.

Speaker Change: I think the way we are we pretty much cover the cover the world I would say.

I think it will be more of the same.

Speaker Change #129: And perhaps a follow up on river for those less familiar what are some of the competitive barriers to entry for this market and how might the operating leverage of river differ versus crews in other words would you generally expect more or less flexibility in the cost structure versus ocean.

Speaker Change: Uh huh.

Speaker Change:

Speaker Change: In the short term.

Speaker Change: You can see some issues related to what happened in the Red Sea.

Speaker Change: And we are dealing with up properly.

Speaker Change: But.

Speaker Change: But.

Speaker Change: But I think apart from that I don't think we will see.

Speaker Change #129: I think.

Speaker Change #129: Good.

Speaker Change: Good morning.

Speaker Change #129: All from a river perspective, I think what sets us apart here is just our scale.

Speaker Change: More and more.

Speaker Change: Hi, good morning.

Speaker Change: Yes.

Speaker Change: Hello.

Mark: Hi, Mark it is commercialized.

Speaker Change #129: But we have identical vessel and that there are many of them. So from a competitive advantage perspective, I think it would be difficult for people to enter.

Speaker Change: Perfect.

Speaker Change: And I wanted to touch your ships.

Speaker Change #129: Into that space and given that we are over 50% of the market share also so.

Speaker Change: That's us.

Speaker Change: Good good.

Speaker Change: Got it got it.

Speaker Change: Thanks Scott.

So we have great brand awareness from our river perspective also the fact that we have the docking locations that we either have long term leases our control we have about 97 of them.

Speaker Change: Additionally, certain markets.

Operator: Um, yeah, yeah.

Speaker Change: Yes.

Speaker Change: So when you think about our osha on coming from the Gulf and you didn't get it.

Operator: or OceanPath has been coming online. You will be able to deploy in the region that we are, you know, small ship experts in.

Speaker Change #130: And then also our forward booking curve. So our corporate forward booking curve gives us flexibility into what itineraries and locations are selling well. So we're able to plan for the future much earlier than others.

Speaker Change: In the region.

Speaker Change: There are more.

Speaker Change: More ship.

Speaker Change: <unk>.

Speaker Change: Rather than being largely Caribbean focus, but I also wanted to point out that we.

Speaker Change: We do operate year round in certain.

Speaker Change #130: And secure those and secure those stocking locations.

Speaker Change: So for example in search of Northern White, you later and expect you would not expect that.

Speaker Change #131: Great. Thanks, so much.

Speaker Change: People would want to go there in the off season, but they do then the but for the Northern light and then also in the med where they're in a quiet season, which our guests also appreciate so.

Speaker Change #131: Yep.

Speaker Change #131: Thank you we have reached our allotted time for questions I would now like to turn the call back over to Thor Hagen.

Speaker Change #132: Vikings chairman and CEO for closing remarks.

Speaker Change: Given just the type of demographic and the.

Well I want to thank.

Speaker Change: People that are drawn to our products. They know that in times, where you wouldn't necessarily think people would travel to certain agents. That's when they know it's best to go.

Thor Hagen: Everyone for joining.

Speaker Change #134: And as Doug.

Speaker Change #134: Our Virgin earnings calls for a broader set of shareholders.

Operator: Travel to certain regions; that's when they know it's best to go. So based on just that difference, we feel that there's ample opportunity for our oncoming fleet.

Speaker Change: So based on just that difference we feel that there is ample opportunity for our ongoing fleet.

Speaker Change #134: Thank you for your support and interest in Viking I wish you a great day.

Operator: And perhaps a follow-up on river cruising, and for those less familiar, what are some of the competitive barriers to entry into this market and how might the operating leverage of river cruising differ versus cruise? In other words, do you generally expect more or less flexibility in the cost structure versus ocean?

Speaker Change: And perhaps a follow up on river.

Speaker Change: For those less familiar what are some of the competitive barriers to entry for this market and how might the operating leverage of river differ versus crews in other words would you generally expect more or less flexibility in the cost structure versus ocean.

Operator: Yeah, I think God.

Speaker Change: Yes.

Speaker Change: Hey, guys.

Operator: Well, from a river perspective, I think, you know, what sets us apart here is just our scale. The fact that we have identical vessels and that there are many of them. So, from a competitive advantage perspective, I think it would be difficult for people to enter that space.

Speaker Change: Oh from a river perspective, I think what sets us apart here is just our scale. The fact that we have identical vessel and that there are many of them. So from a competitive advantage perspective, I think it would be difficult for people to enter.

Into that space and given that we are over 50% of the market share also so.

Operator: And given that we have over 50% of the market share, we have great brand awareness from a river perspective. Also, the fact that we have docking locations that we either have long-term leases on or control. We have about 97 of them. And then also our forward-looking curves. So, our forward-looking curves give us flexibility on what itineraries and locations are selling well. So, we're able to plan for the future much earlier than others and secure those docking locations.

Speaker Change: So we have great brand awareness from a labor perspective also the fact that we have the docking location that we either have long term leases our control we have about 97 of them.

Speaker Change: And then also our forward booking curve, so our fabric forward booking curve.

Speaker Change: This flexibility into what itineraries and locations are selling well, so we're able to plan for the future much earlier than others.

Speaker Change: And secure those and secure those stocking location.

Operator: Great. Thanks so much. Thank you. We have reached our allotted time for questions. I would now like to turn the call back over to Thor Hagen, Vikings Chairman and CEO, for closing remarks.

Speaker Change: Great. Thanks, so much.

Speaker Change: Yes.

Speaker Change: Thank you we have reached our allotted time for questions I would now like to turn the call back over to Thor Hagen.

Speaker Change: Vikings chairman and CEO for closing remarks.

Tor Hagen: Well, I want to thank everyone for joining us. And that's what's called our Virgin Earnings Call for our new shelters. I thank you for your support and interest in biking. I wish you a great day.

Thor Hagen: Well I want to thank.

Thor Hagen: Everyone for joining.

Thor Hagen: And those vehicles are Virgin.

Earnings calls for shareholders.

Thor Hagen: Thank you for your support and interest embarking I wish you a great day.

Brittany: Thank you. This does conclude today's conference call. You may disconnect at any time.

Speaker Change: Thank you. This does conclude today's conference call you may disconnect at any time.

Operator: Thank you for watching, and don't forget to like and subscribe!

Thor Hagen: Sure.

Thor Hagen: Yeah.

Yeah.

Thor Hagen: No.

Hum.

Thor Hagen: Uh huh.

Thor Hagen: Uh huh.

Thor Hagen: [music].

Thor Hagen: No no no.

Thor Hagen: Hum.

Thor Hagen: Uh-huh.

Thor Hagen: Okay.