Q3 2024 Viking Holdings Ltd Earnings Call

Okay.

Unknown Executive: Good morning, my name is Paul and I will be your conference operator today.

Paul: Good morning, My name is Paul and I will be your conference operator today at this time I would like to welcome everyone to Viking's third quarter 'twenty 'twenty four earnings conference call.

Unknown Executive: At this time, I would like to welcome everyone to Vikings third 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.

Paul: Remind you that this call is being recorded.

Paul: All lines have been placed on mute to prevent any background noise.

Unknown Executive: 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, please press star 2. Thank you.

After the Speakers' remarks, there will be a question and answer session. If you would like to ask a question at that time. Please press star one on your telephone keypad, if you wish to remove yourself from the queue. Please press star two.

Carola Mengolini: I would now like to turn the program to your host for today's conference, Vice President of Investor Relations, Carola Mengolini. Good morning everyone and welcome to Viking's third quarter 2024 earnings conference call. I am joined by Tor Hagen, Chairman and Chief Executive Officer, and Leah Talactac, Chief Financial Officer. Also available during the Q&A session is Linh Banh, Executive Vice President of Finance.

Paul: <unk>.

Paul: I would now like to turn the program to your host for today's conference Vice President of Investor Relations Corolla Mangling.

Paul: Yeah.

Speaker Change: Good morning, everyone and welcome to Viking's third quarter 'twenty 'twenty four earnings conference call.

Speaker Change: I am joined by Tom Hagen, Chairman, and Chief Executive Officer, Andrea <unk>, Chief Financial Officer.

Speaker Change: Also available during the Q&A session easily inborn executive Vice President of Finance before we get started please note our cautionary statement regarding forward looking information.

Unknown Executive: 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 the 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. The forward-looking statements are as of today, and we assume no obligation to update or supplement this statement.

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.

Unknown Executive: 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 Leah will provide a strategic overview of the company, a recap of our third quarter results and an update of the current booking environment. We will then open the call for your questions. To supplement today's call, we have prepared an earnings presentation that will also be available on our Investor Relations website following this call.

Speaker Change: We may also refer to certain non I F. I 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.

Total Leah: Total Leah will provide a strategic overview of the company.

Total Leah: A recap of our third quarter results.

Total Leah: <unk> state of the current booking environment.

Total Leah: We will then open the call for your questions.

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

Torstein Hagen: With that, I'm pleased to turn the call over to Tor. Thank you, Carola. And good morning, everyone.

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

Speaker Change: Thank you Carla and good morning, everyone.

Torstein Hagen: I will start today's call highlighting a few performance indicators for the quarter which has been remarkably strong. As you can see on slide three, we reported a great third quarter result. with our consolidated net yield up 11% from the prior year. Additionally, we continue to experience strong demand for our core products. with 95% of our 2024 capacity and 70% of our 2025 capacity sold as of November 3rd, 2024. I believe that this booking position reflects how well our products resonate with our target consumers.

Speaker Change: I will start today's call highlighting a few performance indicators for the quarter, which has been remarkably strong.

Speaker Change: As you can see on slide three we reported a great third quarter results.

Speaker Change: With our consolidated yoga up 11% from the prior year.

Speaker Change: Additionally, we continued to experience strong demand for our core products with 95% of our 'twenty to 'twenty four capacity.

70% of our 25 capacity so as of November three 2024.

Speaker Change: I believe that this booking position that reflects how well our products resonate with our target consumer.

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

Speaker Change: So this <unk> today I want to take the opportunity to talk a little bit more about our ability to generate demand.

Speaker Change: Which is fueled by our top rated and well defined product.

Speaker Change: Two cross selling breakfast has strong brand recognition and a single sales and marketing approach.

Speaker Change: If you look at the next slide.

Torstein Hagen: I want to start by highlighting the scale and reach of our operation. We sail across five oceans, twenty-one rivers, and the five great lakes. offering our guests unforgettable experiences in over 85 countries and across all seven continents. What sets us apart is that we achieve this global presence under a single brand, Viking, a name that stands for excellence in all three categories of the cruise industry, ocean, river, and expedition. Each of our products consistently reflects the high standards of the one Viking brand. This allows our marketing efforts and strong brand loyalty to drive growth across all our offerings.

Speaker Change: I want to start by highlighting the scale and reach of our operations.

Speaker Change: We say across five oceans, 21 rivers and the five great Lakes.

Speaker Change: Our guest unforgettable experiences in over.

Speaker Change: 85 countries and the girl.

Speaker Change: All seven months.

Well it sets us apart is that Ritchie this dobu presence under a single route.

Speaker Change: Right.

Speaker Change: And then that sounds for excellence in all three categories of the tourism is red Ocean whatever an expedition.

Speaker Change: Each of our products consistently reflects the highest standards of the Viking brand.

Speaker Change: This allows our marketing efforts and strong brand loyalty to drive growth across all our offerings.

Torstein Hagen: And while I mentioned that our top-rated product continues to fuel demand, it is immensely gratifying to see this excellence consistently being recognized. If you follow me on the next slide... You will see that for the second year in a row, Viking was rated number one for oceans, number one for rivers, and number one for expeditions by Condé Nast Traveler in their 2024 Reader's Choice Award. This achievement marks the first time that a travel company has won these three categories in back-to-back years. These awards are particularly meaningful because they're voted by our guests, which means that they reflect our team's hard work, passion and dedication to excellence.

Speaker Change: And why do I mentioned that our top rated product continues to fuel demand. It is immensely gratifying to see this excellence consistently being recognized.

Speaker Change: If you follow me on the next slide.

Speaker Change: You will see that for the second year in a row.

Speaker Change: <unk> was rated number one for oceans number one foot rivers and number one for expeditions by <unk> Nast traveler and the 'twenty 'twenty four readers' choice Awards.

Speaker Change: This achievement marks the first time that a travel company as one of these three categories in back to back years.

Speaker Change: These awards are particularly meaningful because they voted by our guests, which means that they reflect our team's hard work passion and dedication to excellence.

Torstein Hagen: These levels of guest satisfaction are gratifying for many reasons. But one of them is that they increase brand loyalty.

Speaker Change: These levels of guest satisfaction I graduate vying for many reasons, but one of them is that they increase brand loyalty.

Torstein Hagen: If you move to slide 6. You can see that our repeat guest percentage has steadily increased over time, from 27% for the 2015 season to 53% for the 24 season to date. Moreover, in the graphs at the bottom of the slide, you can see that we leverage this strong brand loyalty for future product launch. Over 60% of bookings for each of the inaugural seasons for Viking Ocean, Viking Expedition, and Viking Mississippi were made by PASCA. These trends show that our guests trust Viking to deliver the best-in-class travel experiences, whether it be new itineraries for products they love or completely new offerings.

Speaker Change: If you move to slide six.

Speaker Change: You can see that our repeat guests percentage is steadily increase over time from 27% for 2015 season 53 per cent for the 20th or season to date.

Speaker Change: Moreover, in the graphs at the bottom of this slide you can see that we had leverage this strong brand loyalty for future product launches.

Speaker Change: Over 60% of the bookings for each of the inaugural seasons for Viking Ocean.

Speaker Change: Expedition antibodies in Mississippi, where embedded bypass Gus.

Speaker Change: These trends show that our guests dressed Viking to deliver the best in class travel experiences whether it be new hire temporaries would probably say love or completely new offerings.

Torstein Hagen: In summary, one of the benefits of our single brand is our ability to effectively cross-sell across our product offering to our loyal customer base.

Speaker Change: In summary.

Speaker Change: One of the benefits of our single brand is our ability to effectively cross sell across our product offering to our loyal customer base.

Torstein Hagen: Moving to slide 7. For the past 27 years, we have built a single brand that is highly recognized by our target markets around the world. Today, we are the leading brand in North America, outbound river market and in the luxury ocean market. As of the third quarter of 2024, we had 92% of total U.S. brand awareness for river cruises and 80% for luxury ocean. With a single brand, a strong brand awareness drives growth for all our products. Our brand message is clear, and we can streamline and leverage our sales and marketing efforts.

Speaker Change: Moving to slide seven for.

Speaker Change: For the past 27 years, we have built a cigarette brand that is highly recognized by our target markets around the world.

Today, we are the leading brand in North America, outbound or a market.

Speaker Change: And the luxury ocean market.

Speaker Change: Oh.

Speaker Change: The third quarter of 'twenty 'twenty, four we had 92% of total U S brand awareness.

Speaker Change: Ever cruises and 80% for luxury Ocean cruises.

Speaker Change: But the single brand a strong brand awareness drives growth for all our products.

Speaker Change: Brad message is clear and we can streamline and leverage our sales and marketing efforts.

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

Speaker Change: No as I mentioned earlier <unk> operates globally.

Speaker Change: This past quarter, I traveled to Egypt and China.

And I would like to share some updates on these unique regions.

Torstein Hagen: First, let's focus on Egypt on slide 8. Just a couple of weeks ago, I was in Luxor for the naming of our two newest vessels for the Nile River. the Viking Hathor, and the Viking Sobek. These beautiful ships can accommodate 82 guests each, and I believe that they offer the most elegant way to navigate the night. This edition brings our Egypt count to six ships and we have four more under construction to be delivered by 2026. Although Egypt represents a small portion of our total capacity, in the low single digits for 2025, it is a destination of great interest for our guests.

Speaker Change: First let's focus on Egypt on slide eight.

Speaker Change: Just a couple of weeks ago I wasn't luxor for the naming of our two newest vessels for the knife River.

Speaker Change: The Viking Hathor and nobody can stomach.

Speaker Change: These beautiful ships kind of come in at 82 guests each and I believe that they offer the most elegant way to navigate Tonight.

Speaker Change: This addition brings our Egypt count to six ships.

Speaker Change: We have four more under construction to be delivered by 'twenty 'twenty six.

Speaker Change: Although Egypt represents a small portion of our total capacity.

Speaker Change: In the low single digits for 'twenty or 'twenty five.

Speaker Change: It is a destination of great interest for I guess for.

Torstein Hagen: For example, our 12-night Pharaohs and Pyramids itinerary offers our guests a fascinating and culturally rich experience that garners demand and strong yield. We are frankly very pleased to be able to offer this highly distinctive product.

Speaker Change: For example, our 12 nights borrowers on pyramid right offers I guess, a fascinating and cultural literature experience that garners demand and strong yields.

Speaker Change: We are very pleased to be able to offer this highly distinctive brothers.

Torstein Hagen: This quarter I also traveled to Shanghai. If you now flip to the next slide, you will see that, as it pertains to China and the Asian market in general, We have adopted a unique approach. Rooted in a couple of core principles. which include destination-focused experiences and single-language environment on board. So let's begin by addressing our ocean cruises in Asia for English-speaking guests. In September we celebrated our return to China with Viking Jiddu. offering exclusive attenders and access to rarely visited destinations. China is a fascinating country, and our guests can now explore its coastline with the same level of comfort that has been provided on our ocean offering.

Speaker Change: This quarter I traveled to Shanghai.

Speaker Change: If you now flip to the next slide you'll see that as it pertains to China and the Asian market in general.

Speaker Change: We have adopted a unique approach.

Rooted in a couple of core principles, which include.

Speaker Change: Destination focused experiences and single language environment on board.

Speaker Change: So let's begin by addressing our ocean cruises in Asia for English speaking guests.

Speaker Change: In September we celebrated a return to China would like you to.

Speaker Change: Offering exclusive tenders and access to rarely visited destinations.

Speaker Change: China is a fascinating country and I guess can now explore east coast line with the same level of comfort.

Speaker Change: That had been provided on our ocean offerings.

Torstein Hagen: This marks the start of an exciting journey for us, and we plan to expand this program in 2025 with new itineraries that include Japan. In addition, we are expanding our ocean cruises to better serve our Asian guests. We believe that the Asian market has been historically underserved by the cruise industry. To this end, we will provide culturally rich experiences on a product tailored specifically to our Asian guests' preferences and likes.

Speaker Change: This marks the start of an exciting journey for us.

Speaker Change: Glad to expand this program in 2025 with new Italian risk that include Japan.

Speaker Change: In addition, we are.

Speaker Change: Our expanding our ocean cruisers to better serve our Asian guests.

Speaker Change: We believe that the Asian market has been historically underserved by the cruise industry.

Speaker Change: To this end, we will provide culturally rich experiences on the products tailored specifically to our Asian guest preferences and language.

Torstein Hagen: And lastly, since 2016, we have offered river cruises in Europe for Chinese guests. These itineraries feature curated excursions, cuisine adapted to their tastes. and a fully Mandarin-speaking group. Currently, we operate four dedicated vessels for these experiments.

Speaker Change: And lastly, since 2016.

Speaker Change: Oh for direct cruises in Europe, or China East Coast. These item there is.

Speaker Change: Feature curated excursions goosen adapted to their taste.

Speaker Change: And they're fully Mandarin speaking crude.

Speaker Change: Currently we operate four dedicated vessels for these expenses.

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

Speaker Change: While the Protos I have highlighted represent only a very small portion of our overall portfolio.

Speaker Change: Very appealing to our target demographics and play an important role in our long term growth strategy.

Torstein Hagen: Now shift in gears and turn to the slides tab. During this quarter, we completed a secondary offering of 34.5 million shares on behalf of TPG Capital and CPP Investments. at a price of $31 per share. As you can see on the slide, this event slightly changed the ownership composition, increasing the institutional flow. We appreciate all who participated in the offering and the continued interest and support in our company.

Speaker Change: Now shifting gears and turning to slide 10.

Speaker Change: During this quarter, we completed a secondary offering of <unk>.

Speaker Change: 34, and a half million shares on behalf of TPG capital N CPP investments at a price of $31 per share.

Speaker Change: As you can see on this slide this is in slightly changed ownership composition, increasing that institutional flows.

Speaker Change: We appreciate all of them participated in the offering and the continued interest and support in our company.

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

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

Leah Talactac: With that, I will turn to Leah to discuss our panelists.

Speaker Change: That I will talk to Lisa to discuss our financials.

Leah Talactac: Thank you, Tor, and good morning to everyone. We are pleased to have reported a very strong third quarter. On a consolidated basis, total revenue in the quarter increased 11.4% year over year to almost $1.7 billion, mainly due to higher revenue per PCDs. Adjusted gross margin increased 12% year over year to $1.1 billion, resulting in a net yield of $576, 11% higher than the third quarter of 2023. We believe this to be quite remarkable because, as I have mentioned before, 2023 was already a very good year for us. Vessel expenses, excluding fuel per capacity PCDs, increased 2.5% this quarter, compared to the same time last year, but remained almost flat on a year-to-date basis.

Speaker Change: Thank you tore and good morning to everyone. We are pleased to have reported a very strong third quarter on a consolidated basis total revenue in the quarter increased 11.4% year over year to almost $1.7 billion, mainly due to higher revenue per P. C D.

Speaker Change: Yes.

Speaker Change: Adjusted gross margin increased 12% year over year to $1.1 billion, resulting in a net yield of $576, 11% higher than the third quarter of 2023.

Speaker Change: We believe this to be quite remarkable because as I have mentioned before 2023 was already a very good year for us.

Speaker Change: That's all expenses, excluding fuel per capacity P. C. D's increased two 5% this quarter compared to the same time last year, but remained almost flat on a year to date basis. This quarter's year over year increase was mainly due to repair and maintenance costs. These expenses can vary between quarters.

Leah Talactac: This quarter's year-over-year increase was mainly due to repair and maintenance. These expenses can vary between quarters depending on the fleet needs and other factors. Adjusted EBITDA for the third quarter totaled $554 million, improving more than $73 million when compared to the same time last year. This significant year-over-year increase was driven by higher revenues per PCDs in both the river and ocean segments. The adjusted EBITDA margin was 50.4% for the third quarter and 37.6% for the last trailing 12 months.

Speaker Change: Pending on the fleet needs and other factors.

Adjusted EBITDA for the third quarter totaled $554 million, improving more than $73 million when compared to the same time last year.

Speaker Change: This significant year over year increase was driven by higher revenues per Pcbs in both the river and ocean segments.

Speaker Change: The adjusted EBITDA margin was 54% for the third quarter and 37, 6% for the last trailing 12 months.

Leah Talactac: Net income for the third quarter of 2024 was $375 million, compared to a loss of $1.2 billion for the same period in. The net income for the third quarter of 2024 includes a loss of almost $19 million from the revaluation of warrants issued by the company due to stock price appreciation. In comparison, the third quarter of 2023 includes a loss of $1.5 billion from the impact of the Series C preference share. and an additional $73 million loss due to the revaluation. Excluding the warrants loss, adjusted net income attributable to Viking Holdings Limited for the third quarter of 2024 was $394 million.

Speaker Change: Net income for the third quarter of 2024 was $375 million compared to a loss of $1 $2 billion for the same period in 2023.

Speaker Change: The net income for the third quarter of 2024 includes a loss of almost $19 million.

Speaker Change: From the revaluation of warrants issued by the company due to stock price appreciation and.

In comparison, the third quarter of 2023 includes a loss of $1 $5 billion from the impact of the series C preference shares.

Speaker Change: And an additional 73 million dollar loss due to the revaluation of warrants exclude.

Speaker Change: Excluding the warrants loss adjusted net income attributable to Viking Holdings limited for the third quarter of 2024 was $394 million.

Leah Talactac: Adjusted Net Income, attributable to Viking Holdings Limited, represents net income or loss excluding certain items that we believe are not part of our primary operating business and do not reflect future earnings performance. This metric served as a numerator for calculating our adjusted EPS, which we introduced this quarter. Adjusted EPS was $0.89. Before moving to our reportable segments, I would like to highlight that year-to-date our adjusted gross margin increased 12.3% year-over-year to $2.6 billion, and our net yield was $556, 7.5% higher than the same period last year.

Adjusted net income attributable to Viking Holdings limited represents net income or loss, excluding certain items that we believe are not part of our primary operating business and do not reflect future earnings performance.

Speaker Change: This metric served as the numerator for calculating our adjusted EPS, which we introduced this quarter adjust.

Speaker Change: Adjusted EPS was <unk> 89 cents.

Speaker Change: Before moving to our reportable segments I would like to highlight that year to date, our adjusted gross margin increased 12, 3% year over year to $2 $6 billion and our net yield was $556 seven 5% higher than the same period last year.

Leah Talactac: Now, I will briefly discuss our two reportable segments, River and Ocean. Unless noted, I will be referring to year-to-date metrics, or nine months ended September 30th. For the river segment, our capacity PCDs are relatively flat year over year, although during the third quarter, we took delivery of the Viking Hathor, a beautiful vessel that started sailing the Nile by the end of August. Adjusted Gross Margin grew 12.1% year-to-date to $1.2 billion, and net yield was $546, up more than 13% year-over-year, driven by strong demand for our European IT. Occupancy was 95.3% for the nine months. For Ocean, capacity PCDs increased 7.2% year-over-year, mainly due to the delivery of the Viking Saturn in April of 2020.

Speaker Change: Now I will briefly discuss our two reportable segments River and Ocean unless noted I will be referring to year to date metrics or nine months ended September 32024.

For the reverse segment, our capacity P. C. D's are relatively flat year over year, although during the third quarter, we took delivery of the Viking Hasler, a beautiful vessel that started ceiling that out by the end of August.

Speaker Change: Adjusted gross margin grew 12, 1% year to date to $1 $2 billion in net yield was $546 up more than 13% year over year, driven by strong demand for our European itineraries.

Speaker Change: Occupancy was 95, 3% for the nine month period.

Speaker Change: For Ocean <unk>.

Speaker Change: <unk> P C d's increased seven 2% year over year, mainly due to the delivery of the Viking Saturn in April of 2023, and the addition of the Viking due in September of 2020 for occupancy.

Leah Talactac: and the addition of the Viking Idun in September of 2020. Occupancy for the period was 95%. Adjusted gross margin increased 11.7% year-over-year to $1.2 billion. and Net Yield was $533, up 4% compared to the previous year.

Speaker Change: Occupancy for the period was 95%.

Speaker Change: Adjusted gross margin increased 11, 7% year over year to $1 $2 billion and net yield was $533 up 4% compared to the previous year.

Leah Talactac: Now let's move to the balance sheet. As of September 30, 2024, we had total cash and cash equivalents of $2.4 billion and an undrawn revolver facility of $375 million. Our net debt was $3 billion, and to this end, our net leverage improved from 3.0 times as of June 30, 2024, to 2.4 times as of September 30, 2020. As of September 30, deferred revenue was $4 billion. Also on slide 14, you can see our current bond maturity outlook, which has not changed since we last reported, with one bond maturity due in May 2025 and all other maturities in 2027 and With this, I'd like to confirm our debt amortization for 2024 and 2025.

Speaker Change: Now, let's move to the balance sheet.

Speaker Change: As of September 32024, we had total cash and cash equivalents of $2 $4 billion and an undrawn revolver facility of $375 million.

Speaker Change: Our net debt was $3 billion and to this end our net leverage improved from 3.0 times as of June 32024 to 2.4 times as of September 32024.

Speaker Change: As of September 30, deferred revenue was $4 billion.

Speaker Change: Also on Slide 14, you can see our current bond maturity outlook, which has not changed since we last reported with one bond maturity due in May 2025, and all other maturities in 2027 and beyond.

Speaker Change: With this I'd like to confirm our debt amortization for 2024 and 2025.

Leah Talactac: As of September 30, 2024, the scheduled principal payments for the remainder of 2024 are $53 million and $462 million for the full year 2025. From a committed capital expenditure perspective, and for the full year 2024, the total expected committed SHIFT CapEx is about $850 million. or $440 million net of finance. And for the full year 2025, the total expected committed ship capex is about $770 million, or $150 million net of finance.

Speaker Change: As of September 32020 for the scheduled principal payments for the remainder of 2024 or $53 million.

Speaker Change: $462 million for the full year 2025.

From a committed capital expenditure perspective and for the full year 2020 for the total expected committed ship capex is about $850 million or $440 million net of financing.

Speaker Change: And for the full year 2025, the total expected committed ship capex is about $770 million or $150 million net of financing.

Torstein Hagen: The main drivers of the quarterly increases in total committed ship capex for both 2024 and 2025 are related to changes in the ocean With that, I'll turn it back to Tor to review our business outlook, including our booking. Thanks, Leah. Let's now dive into the booking curves, which are all as of November 3rd, 2024. On slide 16, we show our consolidated metrics for our core product. As you can see, 95% of our 2024 capacity BCDs is already booked, and we have sold $4.6 billion of advanced bookings. This is 14% higher than the 2023 season at the same point in time.

The main drivers of the quarterly increases in total committed ship Capex for both 2024 and 2025 are related to changes in the Ocean fleet.

Speaker Change: With that I'll turn it back to tour to review, our business outlook, including our booking curves.

Speaker Change: Thanks Leo.

Speaker Change: Let's now dive into the booking curves, which are all as of November 3rd 2024.

Speaker Change: On slide 16, we show our consolidated metrics for our core products.

Speaker Change: As you can see it in 95% of the about 20 to 24 capacity. These days is already booked.

Speaker Change: So $4 $6 billion of advanced bookings.

Speaker Change: This is 14% higher than the 'twenty two 'twenty three season at the same point in time.

Torstein Hagen: These metrics are very similar to what we shared last quarter, with the 2024 capacity mostly sold out. I will note, as we approach the end of the calendar year, we might experience a few cancellations, which is normal. While we typically resell these rooms, the last-minute prices may be lower than the original rates, causing the full-year advance booking to slightly change.

Speaker Change: These metrics are very similar to what we shared last quarter with the 'twenty 'twenty four capacity mostly sold out.

Speaker Change: I would note as we approach the end of the calendar year, we might experience a few cancellations which is normal.

Speaker Change: But typically we sell these rooms, the last minute prices may be lower than the original rates, causing the full year advance bookings to slightly change.

Torstein Hagen: Now moving to 2025. The figures look very encouraged. Our capacity is increasing by 12% and we are already 70% booked with $4.3 billion of advance book. These are 26% higher than the 2024 season at the same point of time in 2033. This metric is higher than what we shared last quarter, mainly due to strong demand, but also due to a slightly easier comparable. Last year we saw some volume slowdown in October due to the conflict in the Middle East. Aside from this, the reality is that we are achieving very strong bookings for 2025 and we are very pleased.

Speaker Change: Now moving to 'twenty or 'twenty five.

Speaker Change: Figures look very encouraging.

Speaker Change: Our capacity is increasing by 12% and we are already 70% booked with $4 $3 billion of advanced bookings.

Speaker Change: These are 26% higher than the 'twenty 'twenty four season at the same point sometime in 'twenty to 'twenty three.

Speaker Change: This metric is higher than what we shared last quarter, mainly due to strong demand, but also due to a slightly easier comparable.

Speaker Change: Last year, we saw some volumes slow down in October due to the completed in the middle East Aside from this reality is that we are achieving very strong bookings for 'twenty to 'twenty five.

Speaker Change: We're very pleased with it.

Torstein Hagen: On the next slide, you will see our curves for the ocean cruises. This is slide 17. I will start with the green line, which shows the bookings for 2024. Overall, we have sold $1.9 billion of advanced book. which is 15% higher than last year at the same point in time. Notably, our operating capacity is up 6% year over year, and we have already sold 94% of the capacity. I will also note that we are very pleased with the 2024 rates, which are $661 compared to $614 last year. If you now look at the blue line, you will see a booking transfer the 2025.

Speaker Change: On the next slide you will see our cars for the Ocean for instance, this is slide 17.

Speaker Change: I will start with the Green line, which shows the bookings were 2024.

Speaker Change: Overall, we have sold one $9 billion of advanced bookings.

Speaker Change: Which is 15% higher than last year at the same point in time.

Speaker Change: Notably our operating capacity is up 6% year over year.

Speaker Change: We have already sold 94% of the capacity.

Speaker Change: I would also note that we're very pleased with the 'twenty to 'twenty four rights, which is $661 compared to $614 last year.

Speaker Change: If you now look at the Blue line, you will see a booking trends with the 'twenty to 'twenty five or six.

Torstein Hagen: We have sold about $2 billion in advance book. which is 30% higher than last year at this point in time. Our operating capacity is up 18% year over year, and 74% of the 2025 capacity is already sold. Regarding the rates, they equal $753 compared to $680 for the 2024 season at the same point.

Speaker Change: We have sold about $2 billion in advanced bookings, which is 30% higher than last year at this point in time.

Speaker Change: Our operating capacity is up 18% year over year and 74% of the 20 to 25 capacity is already sold.

Speaker Change: Regarding the rates they equal $753.

Speaker Change: Chair to a $680 for the 'twenty 'twenty four season at the same point in time.

Torstein Hagen: Now if we move to slide 18, you will see curves for the river. I will start with advanced bookings for 2024, which is the green line. As you can see, we have sold more than $2.3 billion in advance bookings. which is 14% higher than last year. Our operating capacity for the river is up 4% year-over-year. So we're having a great year with 96% of the 2024 capacity already sold and with rates that are equal to $759 compared to $689 in 2020. Like Ocean, we have very little to sell for 2024 and our teams are now focused on 2025 and beyond.

Speaker Change: Now if we move to slide 18, you.

Speaker Change: You will see curves for the river cruises.

Speaker Change: I will start with advanced bookings for 'twenty, 'twenty, four which is the green line.

Speaker Change: As you can see we have sold more than $2 $3 billion in advanced bookings.

Speaker Change: Is 14% higher than last year.

Speaker Change: Our operating capacity of whatever is up 4% year over year.

Speaker Change: So we're having a great year with 96% of the 'twenty 'twenty four capacity all result.

Speaker Change: With rates that are equal to $759 compared to $689 in 2023.

Speaker Change: Like Ocean, we have very little sell for 'twenty 'twenty four and.

Speaker Change: And our teams are now focused on 'twenty to 'twenty five and beyond.

Torstein Hagen: Now looking at the blue line, these are the advance bookings for the 2025 season. As you can see, we have sold about $2 billion in advance bookings. which is 22% higher than the 2024 season at the same point in time. Our operating capacity for the river is up 7% year over year, and 67% is already sold. In summary, these are very good trends for 2025 with rates equal to $856 compared to $819 in 2024.

Speaker Change: Now looking at the Blue line.

Speaker Change: So the advanced bookings, whether 2025 season.

Speaker Change: As you can see we have sold about $2 billion in advanced bookings, which is 22% higher than the 'twenty to 'twenty four season at the same point in time.

Speaker Change: Our operating capacity of whatever is up 7% year over year.

Speaker Change: 6% to 7% is already sold.

Speaker Change: In summary these.

Speaker Change: A very good trends were 2025 at rates equal to $856 compared to $819 and 28 24.

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

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

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

Speaker Change: Not really I will add some color to our order book and capacity.

Leah Talactac: Thank you, Tor. Moving to our order book and capacity updates. During the month of October, we took delivery of the Viking Sobek. As Tor just mentioned, this is an 82 guest vessel that is sailing on the Nile River in. In October, we also exercised our options for Ocean Ships 19 and 20, which are both scheduled for delivery in 2030. These ships are similar in size, accommodating about 998 guests each. And lastly, we entered into an option agreement for four additional ocean ships that, if exercised, will be delivered in 2031 and 2032, two each year. These cruise ships will be built by the Fincantieri Shipyard, which has delivered the entire Viking As you can see, there is a lot going on at Viking, and we are thrilled to share news on further growth.

Speaker Change: Thank you tore.

Speaker Change: Moving to our order book and capacity updates during the month of October we took delivery of the Viking So back as tore just mentioned this is an 82 guest vessel that a ceiling on the Nile River in Egypt.

Speaker Change: In October we also exercised our options for Ocean ships, 19, and 20, which are both scheduled for delivery in 2030.

These ships are similar in size accommodating about 998 guests each and lastly, we entered into an option agreement for four additional ocean ships that if exercised will be delivered in 2031 and 2032.

Speaker Change: To each year.

Speaker Change: These cruise ships will be built by the Fincantieri shipyard, which has delivered the entire Viking Ocean fleet.

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

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

Speaker Change: As we continued to deliver strong financial results, we remain equally committed to providing unforgettable experiences for our guests. This balance is key to our long term success and sustainable growth with this I conclude our prepared remarks, I'll now turn it back to the operator to take questions.

Leah Talactac: With this, I conclude our prepared remarks.

Unknown Executive: I'll now turn it back to the operator to take Thank you.

Unknown Executive: At this time, we will be conducting a question and answer session. In the interest of time today, we ask that you please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button. One moment please, while we pull for questions.

Speaker Change: Thank you at this time, we will be conducting a question and answer session in the interest of time today, we ask that you. Please limit yourself to one question and one follow up.

Speaker Change: If you'd like to ask a question. Please press star one on your telephone keypad.

Speaker Change: A confirmation tone will indicate your line is in the question queue.

Speaker Change: You May press Star two if you would like to remove your question from the queue.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker Change: One moment, please while we poll for questions.

Matthew Boss: And the first question today is coming from Matthew Boss from J.P. Morgan. Matthew, your line is live. Great, thanks and congrats on another nice So, Tor.

Speaker Change: And the first question today is coming from Matthew boss from J P. Morgan Matthew Your line is live.

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

Speaker Change: So tore you maybe it's maybe to kick off and any notable changes in forward demand indicators, where the consumer backdrop today and if you could just elaborate on the shift that you cited and focus for 2025 to capitalizing on your well defined product.

Torstein Hagen: Thank you.

Matthew Boss: Maybe to kick off, any notable changes in forward demand indicators or the consumer backdrop today?

Torstein Hagen: And if you could just elaborate on the shift that you cited in Focus for 2025 to capitalizing on your well-defined product. I think, I think we We don't see any surprises. I think we have had a solid long term plan and so far we're coming in. according to our plan. is really what I can say.

Speaker Change: I think.

Speaker Change: I think we.

Speaker Change: We don't see any surprises I think we are at the top.

Speaker Change: So the long term plan and so far we're coming in.

Speaker Change: According to our plan.

Speaker Change: It was really what I can say.

Torstein Hagen: Thank you for joining us. Thank you.

Speaker Change: Great and the second part of it.

Matthew Boss: I'm not sure I got that entirely, so please repeat. So for 2025 and the release, you talk about capitalizing on your well-defined product and shifting your focus to that. So maybe just as we think about the 25 booking curves, how you're thinking about things.

Speaker Change: Scott I'm not sure I got that inside of that nature.

Speaker Change: So for 2025 in the release you talk about capitalizing on your well defined product and shifting your focus to that so maybe just as we think about the 25 booking curves.

Speaker Change: Thinking about things.

Speaker Change: Well.

Torstein Hagen: I think the way we started Viking. We said we think there's an unserved market for elderly people who have lots of experiences and would like to be on nice ships. And I think that's what we continue to deliver on. As you know, many of our guests have been on other cruise ships and found that nice. But as you know, we have a few key points in our product offering. We are proud we don't allow children on board. And I think that's a very strong point. We don't have a casino, so we don't have the noise that goes with that.

Speaker Change: Uh huh.

Speaker Change: Thanks.

Speaker Change:

Speaker Change: Started back when we said we think there's an unserved.

Speaker Change: Good for you.

Speaker Change: Elderly people, who have lots of experiences and we'd like to be on chips.

Speaker Change: And I think that's what they continue.

Speaker Change: To deliver on.

As you know many of I guess that'd be it on the other cruise ships and found that nice.

Speaker Change: But as you.

Speaker Change: There are a few key points in our product offering we have.

Speaker Change: We don't do a lot of children.

Speaker Change: Kelvin onboard and I think that's a very strong one.

Speaker Change: We don't have a casino. So we don't have the noise that goes with that.

Torstein Hagen: and we don't like the nickel and dime people. I think those are very strong points when it comes to even experienced cruisers who can be on great ships which produce lots of profits and lots of noise but when they come on a Viking ship they can really relax and I think that That's a product that we are working on.

Speaker Change: I really don't like to nickel and dime people I think there's a very strong ones.

Speaker Change: When it comes.

Speaker Change: Even experienced cruisers.

Speaker Change: Great ships with produce lots of profit and loss.

Speaker Change: So nice, but when they come into license if they can bring over and I think that's.

Speaker Change: That's a problem.

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

Speaker Change: They also have a new generation chips.

Speaker Change: Looking at hydrogen fuel cells, and so forth. So it can be.

Speaker Change: Environment.

Speaker Change: Tom.

Speaker Change: And.

Speaker Change: And that will happen.

Speaker Change: Two ships from now.

Leah Talactac: Great, and then maybe Leah, if you could just elaborate on the composition of 2025 pricing, maybe specifically how trends are relative to your plan, or how best to think about river up mid-single digits on high single-digit capacity versus ocean up low double digits on high teens capacity. Yeah, I think, um, you know, we've said it before, you know, as the booking curve evolves, we do it, we have been able to achieve mid to high single digits, I think, from a full year basis. That remains our Our expectation is that as the year continues to sell, that would be where we would Expect Things.

Speaker Change: Great and then maybe if you could just elaborate on the composition of 2025 pricing, maybe specifically how trends are relative to your plan or how best to think about river up mid single digits on high single digit capacity versus ocean up low double digits on high teens capacity.

Speaker Change: Hey.

Speaker Change: Yeah, I think you know we've said it before.

Speaker Change: The booking curve evolves, we do it we have been able to achieve mid to high single digits I think from a full year basis.

Speaker Change: That remains our our expectation is that as the as the year continues to sell them you know that would be where we would.

Speaker Change: Kind of expect things to land.

Matthew Boss: Great. Best of luck.

Speaker Change: Great Best of luck.

Thank you.

Stephen Wieczynski: Thank you. The next question is coming from Steve Wieczynski from Steam. Steve, your line is live.

Speaker Change: Thank you. The next question is coming from Steve White Shinskie from Stifel. Steve Your line is live.

Stephen Wieczynski: Yeah, guys, good morning, and congrats on a very solid quarter. So, you know, if we look at your booking curve into 25, you know, and with you guys now being, you know, almost 70% sold for next year, just, you know, just trying to understand how you view your, you know, what we would call kind of your optimal book position. And I guess what I'm trying to understand is, you know, maybe how that 70% book position would look more on a historical basis. And, you know, are you guys getting to the point where, you know, you're maybe booking too much too far in advance?

Speaker Change: Yeah, Hey, guys good morning, and congrats on a very solid quarter.

Speaker Change: So if we look at your booking curve into 'twenty five.

Speaker Change: And would you guys now being almost 70% sold for for next year, just just trying to understand how you view. Your you know what we would call kind of your optimal booked position in and I guess, what I'm trying to understand is maybe how that 70% booked position would look more on a historical basis and.

Speaker Change: Are you guys getting to the point, where youre, maybe booking too much too far in advance and I hope that I hope that makes sense.

Stephen Wieczynski: And I hope that, you know, I hope that makes sense.

Torstein Hagen: Yeah, that makes sense, Steve.

Speaker Change: Yeah that makes sense, Steve and I think that was what we had started to introduce in the last quarter and last quarters call is that you know given that this year was an election year and there is some short term volatility with or as it relates to that we had.

Torstein Hagen: And I think that was what we had started to introduce in the last quarter and last quarter's call is that, you know, given that this year was an election year, and there is some short term volatility with as it relates to that, we had. I think you will start to see some normalization of that moving forward. So, so, you know, asking a little bit differently, if we're sitting here a year from now, I would assume 70%, you probably wouldn't be 70% booked for 26. Is that fair to think about it that way? It's a balance.

Speaker Change: Started to kind of accelerate the booking curve, but having said that you know it is quite accelerated.

Speaker Change: We are more accelerated this year than what we had been prior to Covid and I think you will start to see some normalization of that moving forward.

Speaker Change: So so asking it a little bit differently, if we're sitting here a year from now.

Speaker Change: I would assume 70% you probably wouldn't be 70% booked for 'twenty.

26 is that fair.

Speaker Change: Fair to think about it that well balanced yeah. It is a balance between what yields you would like to achieve and also how further out you want to be booked as well so.

Torstein Hagen: Yeah, it's a balance between what yield you would like to achieve and also how further out you want to be booked as well.

Torstein Hagen: So, you know, for 2020, you know, looking forward a year from now, we could , Andrew Didora, Stephen Grambling, Steven Wieczynski, Daniel Politzer, Robin Farley, you know, throttle up or throttle down demand based on how we. Okay, gotcha.

Speaker Change: For 'twenty.

Speaker Change: 2020, you know looking forward a year from now we could be.

Speaker Change: Be a little bit less sold them, but again, you know that really depends on how we see things playing out and those are one of the leverages that we have in terms of that's the benefit of our strong bookings right. Because you can start to see where to how demand is shaping and then we also since we are a marketing company as well.

Speaker Change: We are able to throttle up or throttle down demand based on how we market.

Stephen Wieczynski: And then second question, you know, if I could, and I'm not sure you're going to answer this, but, you know, obviously, for 25, you're very well booked out at this point is, you know, if we started to think more about, you know, 2026, I guess what I'm trying to understand is that have you basically got your customer base to, you know, to essentially now book further out to, you know, to capture the best itineraries, cabins, whatever way you want to think about it. So I guess, you know, what I'm trying to understand is, if we think about, you know, where you're booked today for 2026, is it stronger than where you would have would have been booked historically at this point in time?

Speaker Change: Okay got you.

Speaker Change: And then second question, if I could and I'm not sure you're going to answer this but you know obviously for 25, youre very well booked out at this point as we started to think more about.

Speaker Change: 2026, like I guess I'm trying to understand is that have you basically got your customer base two to essentially now book further out two to capture the best itineraries cabins, whatever way you want to think about it. So I guess, what I'm trying to understand is if we think about where you are booked today for 2026 is it stronger.

Speaker Change: Then where you would where you would have would have been booked historically at this point in time.

Torstein Hagen: So our focus remains on finishing 2024 strongly and also, you know, making sure that 2025 is in good shape. Having said that, our guests do, they're older, they do like to plan, they do know that we sell out. And so there are going to be certain segments of them that are more keen to book early to make sure that they either have the itinerary they want, the cabin that they want. And also, you know, our pricing reflects that we like to make sure that the people who book early also have the best deal. So it's a combination of many factors.

So our focus remains on finishing 2024 strongly and also you know making sure that 2025 is in good shape, having said that our guests do they are older. They do like to plan. They do know that we sell out and so there are going to be certain segments of them that are more key.

Jean: Jean to book early on to make sure that they either have itinerary. They want the cabin that they want them and also you know our pricing reflects that we like to make sure that the people who book early also.

Jean: The best deal. So it's a combination of many factors.

Stephen Wieczynski: But again, you know, our focus is in closing out 2024 strongly and then also making sure that 25 is in good shape.

Jean: But again you know our focus isn't closing out 2024 strongly and then also making sure that twenty-five is in good shape.

Stephen Wieczynski: Okay, gotcha.

Stephen Wieczynski: Thanks, guys. Appreciate it.

Speaker Change: Okay got you thanks, guys appreciate it.

Robin Farley: Thank you. The next question will be from Robin Farley from UBS. Robin, your line is live. Great. Great, thank you. Just looking at your book revenue per cruise day for for next year, and, you know, a quarter ago that had been at a 10% growth rate, now it's at a 7% growth rate. And I think you guys have been very clear that that 10% growth rate would move down. I'm curious now that we're, you know, at this point in where the year is booked at that 70% rate. Should that 7% growth rate move up, or should we still expect it to potentially move down slightly from that plus 7%?

Speaker Change: Thank you. The next question will be from Robin Farley from UBS Robin Your line of sight right.

Robin Farley: Thank you.

Just looking at your revenue per crew safe for for next year, and you know a quarter ago that had been at a 10% growth rate and how it sort of 7% growth rate and I think you guys have been very clear that that 10% growth rate would move down I'm curious now that we're you know.

Robin Farley: At this point and where they are supposed to that 70% rate.

Robin Farley: That 7%.

Robin Farley: Growth rate move up or should we still expect it to potentially move down slightly from that plus 7% or since you are booked further in advance.

Robin Farley: Or since you are booked further in advance than you typically are, is there a chance that 7% moves up?

Robin Farley: Than you typically are is there a chance that 7% is up how should we think about that number. Thanks.

Robin Farley: How should we think about that number?

Robin Farley: Thanks.

Leah Talactac: Hi, Robin. I mean, I think at the end of the day, you know, our goal, as Leah just mentioned, is to continue to grow capacity, which you can see our order book, and also from a yield perspective, grow in the mid to high single digits. And we can see that for 24 and 25, we've been able to achieve that thus far. So that remains our goal. Obviously, you know, as you know, we don't give guidance, but where we stand today with 70% booked for 2025 at rates that are 7% higher, you know, with a 12% capacity increase, we feel pretty good about that.

Speaker Change: Hi, Robyn I mean, I think at the end of the day, you know Oracle as Leah just mentioned is to continue to grow capacity.

Speaker Change: Which you can see our order book and also from a yield perspective grow and the mid to high single digits and we can see that for 24 and 25, we've been able to achieve that thus far so that remains our goal. Obviously you know as you know, we don't give guidance, but where we stand today with 70% booked for 2025.

Speaker Change: At rates that are 7% higher with a 12% capacity increase we feel pretty good about that.

Robin Farley: Okay, thanks. And then maybe I'll try to ask, with Egypt, which, you know, given how far you book in advance, that a lot of this year maybe would have been booked already before October of last year. And so maybe actually the year ahead becomes a tougher year in terms of comparisons there, in terms of what ends up being on the books for 2025. Is there anything that you would quantify since, you know, your Nile River ships, you know, are probably at lower than what would be a normal occupancy rate? Is there anything you'd quantify to sort of say, the impact of Egypt on 2025 could be, you know, X percent in yield, you know, the typical definition, including occupancy?

Okay.

Speaker Change: Hmm.

And then maybe I'll try to ask with with Egypt, which given how far you book in advance them, but a lot of this year, maybe would've been booked already before October of last year, and so maybe actually the year ahead becomes a tougher year in terms of.

Speaker Change: Comparisons there in terms of what ends up being on the books for 25 is there anything that you would quantify since you're you're Nile River ships.

Speaker Change: We are at lower than what would be a normal occupancy rate is there anything you'd quantify it you sort of say the impact of Egypt on 2025 could be you know.

Speaker Change: X percent and.

Speaker Change: In yield.

Speaker Change: The typical definition, including occupancy thanks.

Robin Farley: Thanks.

Torstein Hagen: That is actually a great question. You know, Egypt, we feel very good about that product. It's a great experience. It's actually one of our highest rated NPS scores. That being said, you know, as a percentage of capacity, Egypt is a couple percentage points. So, although it is a great itinerary with, you know, great yields, Some small movements there won't move the needle that much. But that being said, you know, your point is very well taken. We do agree. You know, Egypt generally sells out very quickly. Great, thank you very much.

Speaker Change: And that is actually a great question, Egypt, we feel very good about that product. It's great experience. It's actually went up our highest rated NPS scores that being said you know as a percentage of capacity Egypt is a couple percentage points. So although it is a great itinerary with.

Speaker Change: Great yields.

Speaker Change: Some small movements there won't move the needle that much but that being said you know your point is very well taken we do agree you'll Egypt generally selling out very quickly.

Okay, great. Thank you very much.

Torstein Hagen: And if I may add, then we were there. about a month ago and I mean the ships we have in Egypt are by far the best on the river. So we are continuing to build and I think everybody is very impressed with the product. and we will continue to build their very good economics too. So it's small, but very interesting.

Speaker Change: And if I may add to that.

Speaker Change: And we were there.

About a month ago.

Speaker Change: The ships we have.

Speaker Change: In Egypt, our bi.

Speaker Change: By far the best on the on that ever so.

Speaker Change: So we are continuing to build and I think.

Speaker Change: Everybody is very impressed with the product.

Speaker Change: And we will continue to build a very very good economics.

Speaker Change: It's small but very interesting.

Speaker Change: Thank you.

Andrew Didora: The next question will be from Andrew Didora from Bank of America. Andrew, your line is live. Hi, good morning, everyone. Tor, I think you mentioned in your prepared remarks that you've seen a little bit of a slowdown due to the conflict in the in the Middle East. Can we dig into that a little bit more? Is this, do you see this mostly in Egypt? Is this what drove some of the 24 cancellations? Or were you seeing it in 2025 bookings?

Speaker Change: Thank you. The next question will be from Andrew <unk> from Bank of America, Andrew Your line is nice.

Speaker Change: Hi, good morning, everyone.

Speaker Change: I think you mentioned in your.

Speaker Change: Prepared remarks that you've seen.

Speaker Change: Slow down due to the conflict in the Middle East Yeah can we dig into that a little bit more is this do you see this mostly in Egypt does this what drove some of the 24 cancellations or what are you seeing it in 2025 bookings just curious if just curious if you've seen any sort of recovery.

Torstein Hagen: Just curious if and just curious if you've seen any sort of recovery to trend or if you're still seeing weakness there? I've seen the booking cards for the rivers and you see it's a slowdown around this time a year ago, but I don't think it has been, it has recovered quite well since then, I would say. So it's a concern, but I would say that people who travel there are not worried about security or anything like that. We feel very safe in Egypt. I was there and I think we're all safe.

Speaker Change: Trend or if youre still seeing weakness there.

Speaker Change: But I've seen the booking curve, so the diverse and you'll see it's a slowdown.

Speaker Change: Around this time a year ago.

Speaker Change: But I don't think it has been.

Speaker Change: It has recovered quite well since then.

Speaker Change: Uh huh.

Speaker Change: Uh huh.

It's a concern, but I would say that people who travel there are not worried about our secured or anything like that this is very sad.

Speaker Change: And then just I was there and I think we're all set.

Torstein Hagen: So I think this will be a good product for a long time.

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

Andrew Didora: Okay, got it. And then, yeah, I guess we've seen and heard some pretty positive commentary from airlines just about the health of the transatlantic business.

Speaker Change: Okay got it and then.

Speaker Change: I guess, we've seen and heard some pretty positive commentary from airlines just about the health of the Trans Atlantic business.

Leah Talactac: How many customers book their airfare with you? And should we expect any potential cost pressure from this as we think about the bridge going from gross revenues to net revenues for you in 2025? Thank you. As you can imagine, I mean, I think, you know, given our demographic, a good amount of our guests do book air through us. I think the ability to have a package, you know, travel itinerary with one place, you know, it speaks to our core consumer base. That being said, I mean, I think you can see that in our yields. Our yields will, of course, reflect the cost.

Speaker Change: Customers book, There are fair with you and should we should we expect any potential cost pressure from this as we think about the bridge going from gross revenues net revenues for you in 2025. Thank you.

Speaker Change: As you can imagine I mean, I think you know given our demographic a good amount of Rguest you broke her through her last I think the ability to have a package you know.

Itinerary with ones when placed you know it speaks to our core consumer base that being said I mean, I think you can see that NRG yield our yield will of course reflect the cost I know are curbs only show revenue, but as you look through our financials.

Leah Talactac: I know our curbs only show revenue. But as you look through our financials, and you can see that for Q3, you know, our yields are up for the third quarter by 11%. So the team's managing through this. And, you know, from our perspective, we're managing through this well, which is reflected in the yields. Got it.

Speaker Change: And you can see that for Q3, you know our yields are up for the third quarter by 11%. So the team is managing through this and you know from our perspective, we're managing through this well which is reflected in the yields.

Speaker Change: Got it thanks Lynn.

Leah Talactac: Thanks, Linh. Thank you.

Speaker Change: Thank you.

Speaker Change: Thank you. The next question will be from Patrick Scholes from Truest Securities Patrick Your line is live.

Patrick Scholes: The next question will be from Patrick Scholes from Truist Securities. Patrick, your line is live. Thank you. Good morning, everyone.

Patrick Scholes: Thank you good morning, everyone.

Patrick Scholes: I want to ask a Very similar question to the one I asked last quarter. And this relates to I would call a high-class and enviable problem, that being you're quickly improving and arguably soon to be under-leveraged balance sheet. Tor, do you have any further thoughts or updates on the eventual perhaps return of capital from that balance sheet? Thank you. I know... This is a question that comes up fairly often for us, and overall we're committed to a balanced capital allocation framework. As you know and as we've said before, maintaining a large cash reserve on the balance sheet acts as a buffer, particularly against unpredictability in today's economic environment.

Patrick Scholes: I wanted to ask a.

Patrick Scholes: Very similar question to what I asked last quarter.

Patrick Scholes: And this is relates to I would call a high.

Patrick Scholes: A high class and vehicle.

Patrick Scholes: Problem that being your quickly approving an arguably seem to be under levered balance.

Balance sheet tore do you have any further thoughts or updates on.

Patrick Scholes: The eventual perhaps return of capital from that balance sheet. Thank you.

Patrick Scholes: Yes.

Patrick Scholes: Okay.

Go ahead go ahead.

Patrick Scholes: Yeah. So this was directed at tour, but you know I I. This is a question that comes up fairly often for US and you know overall, we're committed to a balanced capital allocation framework.

Patrick Scholes: As you know and as we've said before we maintaining a large cash reserve on the balance sheet acts as a buffer I'm, particularly against unpredictability in today's economic environment. So I'm a big cash reserve provides us a strong financial safety net that ensures that we have stability and flexibility.

Torstein Hagen: So a big cash reserve provides us a strong financial safety net that ensures that we have stability and flexibility. One of our top priorities is to reinvest the cash in the business so that we can generate strong returns. So also a strong cash balance makes sure that we are ready for an acquisition if the right opportunity presents itself. And as we've said before, our guiding principles when it comes to investing in the business or any future acquisitions is that it's scalable, it is margin accretive, and then it's also complementary to the brand and is within the brand ethos.

Patrick Scholes: One of our top priorities is to reinvest the cash in that business. So that we can generate strong returns.

Patrick Scholes: So also a strong cash balance make sure that we are ready for an acquisition if the right opportunity presents itself and as we've said before you know our guiding principles when it comes to investing in the business or any future acquisitions is that it's scalable.

Speaker Change: It is mark do you have an accretive and then it's also complementary to the brand and is within the brand ethos. So you know we believe that this strategy reflects our long term perspective, we are not currently contemplating a dividend or share buybacks, but they could be an option in the future to return capital to shareholders.

Torstein Hagen: So, you know, we believe that this strategy reflects our long-term perspective.

Torstein Hagen: We are not currently contemplating a dividend or share buybacks, but they could be an option in the future to return capital to share.

Patrick Scholes: Okay, can I ask a follow-up question?

Speaker Change: Can I ask a follow up question.

Patrick Scholes: Would you know from hearing your response, you know, is it fair to assume that over the long term, you would like to take a more conservative stance? And this is kind of what I heard from your answer, then your public competitors, when I think about public competitors, sort of targeting, you know, during normal times, steady state time, sort of two to three and a half times net debt to EBITDA.

Speaker Change: Sure.

Speaker Change: From hearing your response is it fair to assume that over the long term you would like to take a more conservative stance and this is kind of what I heard from your answer then your public competitors want to think about public competitors sort of targeting very normal times, a steady state type sort of two to three.

Speaker Change: Five times net debt to EBITDA, but certainly this has been an industry that.

Torstein Hagen: But certainly, this has been an industry that, you know, has seen periods of extreme volatility, is it fair to assume that you would like to take a more conservative stance, then sort of those historical ranges from your peers? And not to put words in your mouth, but just curious.

Speaker Change: I see.

Speaker Change: Periods of extreme volatility is it fair to assume that you would like to take a more conservative stance.

Speaker Change: Then sort of those historical ranges from your peers.

Not to put words in your mouth, but just curious thank you.

Torstein Hagen: Thank you. I think what we have not really, we haven't provided any targets for ourselves, you know, as We are in a period of growth, as we take advantage of opportunities, our leverage could go up and down. And I think our focus is really to make sure that the cash is reinvested within the business to generate shareholder returns. Okay, fair enough.

Speaker Change: I think what we have not really we haven't provided any targets for ourselves.

Speaker Change: As we we are in a period of growth.

Speaker Change: As we take advantage of opportunities or leverage could go up and down and I think our focus is really to make sure that the cashes reinvested within the business to generate shareholder returns.

Speaker Change: Okay.

Speaker Change: Fair enough. Thank you.

Speaker Change: Thank you. The next question is coming from Connor Cunningham from Melius Research your line of size.

Conor Cunningham: The next question is coming from Conor Cunningham from Mellius Research. Hi, everyone. Thank you. Maybe just following up on that question specifically. So you exercise some options for for ocean cruises. I just, you know, is the opportunity still much better at ocean and river than it is outside of your core, your core business, you know, just trying to understand. We talked a lot about during the IPO process of beyond the Viking core.

Connor Cunningham: Hi, everyone. Thank you maybe just following up on that question, specifically, so you exercise some options for ocean cruises.

Connor Cunningham: I just you know, it's it's the opportunity still much better at Ocean and river than it is outside of your core.

Connor Cunningham: Your core business you know just trying to understand we talked a lot about during the IPO process of beyond the Viking core just just curious on where things stand in terms of evaluating opportunities outside of our cruising in general. Thank you.

Torstein Hagen: Just just curious on where where things stand in terms of evaluating opportunities outside of cruising in general. Thank you. Sure. So our primary focus is taking delivery of our ships on order between now and 2030. You can see that we have a pretty attractive growth profile when you look at our committed ship. But given the growing addressable market and demand for cruising more broadly, we do see significant white space to continue sourcing increasing penetration from our primary markets. You know, that's the English speaking North American as well as the UK and Australian and New Zealand.

Speaker Change: Sure. So our primary focus is taking delivery of our ships on order between now and 2030, you can see that we have a pretty attractive growth profile. When you look at our committed.

Speaker Change: Our committed ship them, but given the growing addressable market and demand for cruising more broadly we do see significant white space to continue sourcing increasing penetration from our primary markets. You know that's the English speaking north American as well. So you can Australian and New Zealand as we know crews penetration in the U S is only 4%.

Linh Banh: As we know, cruise penetration in the U.S. is only four percent. Having said that, you know, Tor did speak about what we are expanding upon in China. So we are back in China with English speaking guests. And in addition to that, we also see opportunity to expand our appeal to other. and other Asians.

Speaker Change: Having said that you know toward did speak about what we are expanding upon and China. So we are back in China with English speaking guests and in addition to that we also see opportunity to expand our appeal to them. Other you know other Asian markets. So those are our current.

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

Speaker Change: But we do know that we have a strong brand and that brand.

Speaker Change: Is a trusted brand that our past guests.

Speaker Change: Would be quite happy to support any meaningful new products that we enter into the market and as well as we're able to attract new to brand quite well as well.

Conor Cunningham: Okay, that's helpful.

Speaker Change: Okay. That's helpful. And then maybe a bit of a hypothetical I think you have six vessels in Russia in one in one in Ukraine that obviously haven't had been impacted by the conflict. There can you just talk about if that works and how quickly you could bring that back online. What you would think that would look like and maybe any contribution.

Torstein Hagen: Maybe a bit of a hypothetical. I think you have six vessels in Russia and one in Ukraine that obviously have been impacted by the conflict there. Can you just talk about if that war were to end, how quickly you could bring that back online, what you would think that would look like, and maybe any contribution that that market had, you know, pre the conflict in general. Thank you.

Speaker Change: That market had.

Speaker Change: Pre pre the conflict in general Thank you.

Torstein Hagen: I think what this one tour would say, one of his favorite cruises of all times is in Russia. So it is unfortunate that we aren't able to operate there. That being said, we have five ships that operate in Russia, plus one that operated in Ukraine. I think if we were to be able to operate again, which is our hope, I think we would be able to put those ships back into operation relatively quickly. That being said, these are not long ships. These are ships that we have refurbished over the years. I think they were built some many decades ago.

Speaker Change: I think with this one too I would say one of his favorite criticism at all times is in Russia. So it is unfortunate that we arent able to operate there that being said we have five ships that operate in Russia, plus one that operated in Ukraine.

I think if we were to be able to operate again, which is our hope I think we would be able to put those ships back into operation relatively quickly.

Speaker Change: That being said these are not long ships. These are ships that we have refurbished over the years I think they were built some many decades ago.

Torstein Hagen: They do contribute to EBITDA pre the conflict, of course, but it is not at the same margins as our long ship. That being said, there's definitely upside there if we're able to operate in that area again.

Speaker Change: They do contribute to EBITDA, a pre pre the conflict of course, but it is not at the same margins as our long shot that being is that there's definitely upside there if we're able to operate in that area again.

Conor Cunningham: Appreciate it. Thank you.

Speaker Change: I appreciate it thank you.

Speaker Change: Yeah.

Dan Politzer: The next question will be from Dan Politzer from Wells Fargo. Dan, your line is live. Hey, good morning, everyone. Thanks for taking my question.

Speaker Change: Thank you. The next question will be from Tom Pulitzer from Wells Fargo, Dan Your line is live.

Speaker Change: Hey, good morning, everyone and thanks for taking my question.

Dan Politzer: At first, I want to touch on Ocean, specifically for 2025. You know, you're sitting at 74% booked. Your gross pricing is tracking up around 11%. Now, this is pretty much similar to where your pricing was tracking when you were 33% booked eight months ago. So I'm just trying to better understand, you know, this strength in pricing relative to 2024, you know, what exactly is driving that? Is it mixed or specific itineraries you'd highlight? Or alternatively, is there just an implicit expectation that this does end up mean reverting kind of back to the 2024 level?

Speaker Change: First I wanted to touch on Ocean, specifically for 2025, you know you're sitting at 74% booked.

Speaker Change: Your gross pricing is tracking up around 11% now is pretty much similar to where your pricing was tracking them. When you were 33% booked eight months ago. So I'm just trying to better understand this.

Speaker Change: This strength in pricing relative to 2024, what exactly is driving that is it mix or specific itineraries you'd highlight or alternatively is there just been implicit expectation that does end up mean reverting back to the 2024 levels.

Leah Talactac: So for Oceans, I think one of the things that we have to keep in mind, and we discussed this last quarter, is for 2024, you know, given where we were with deployment, you know, we had one world cruise, it sold out really quickly. So we did decide to add a second world cruise. That did impact our 24 yields, which is what we see thus far, and you can see that in the curves. For 2025, though, we have, we looked at deployment again, and we decided to do one world cruise. So some of that, you know, difference in yield increases, or price increases, is related to how we set our deployment at the end of the day.

Speaker Change: So for oceans, I think one of the things that we have to keep in mind and we discussed this last quarter is for 2024, you know given where we were with deployment well you know we had one world cruise is still without really quickly. So we did decide to add a second world Chris that did impact our <unk>.

Speaker Change: For yields which is what we see them, thus far and you can see that in the curves for 2025, though we have we looked at the appointment again and we decided to do oneworld crews. So some of that you know difference in yield increases or price increases is related to how we set our appointment at the end of the day.

Speaker Change: Obviously, we are quite happy with where we are for oceans, you know being that far sold for 2025 mm, 74% sold at pricing up.

Leah Talactac: Obviously, we are quite happy with where we are for Oceans, you know, being that far sold for 2025, you know, 74% sold at price up 11%. So we're in a good spot.

Speaker Change: 11%, so we're in a good spot.

Dan Politzer: Got it. Thanks.

Speaker Change: Got it thanks, and I wanted to ask the capital allocation question, maybe a bit differently, obviously, but you know there was a secondary offering in September I recognize you want to have some dry powder, but you know as it relates to the sponsors they're doing about 40% of the stock when.

Dan Politzer: And I wanted to ask the capital allocation question maybe a bit differently. Obviously, there was a secondary offering in September. I recognize you want to have some dry powder, but as it relates to the sponsors, they still own about 40% of the stock. When you think about that coming to market at some point, do you maybe think about returning capital shareholders within that same vein relative to the secondary offering or sponsorship versus open market purchases?

Speaker Change: When you think about that coming to market at some point do you maybe think about returning capital to shareholders within that same vein relative to the secondary offering.

Speaker Change: Our sponsorship versus open market purchases or do you view those two things separately.

Leah Talactac: Or do you view those two things separately? I think we are at a place where we do feel that there are opportunities for both organic and inorganic growth. So at this time, there are no contemplated share buybacks in either. I think that we do have an attractive growth profile. We do have pretty strong growth plans and we remain committed to deploying our cash to make sure that there is return to the business. Got it.

Speaker Change: I think we are at a place where you know we are we do feel that there are opportunities for both organic and arc and inorganic growth.

Speaker Change: So at this time, there are no contemplated share buybacks in either.

Speaker Change: Either either option.

Speaker Change: Hmm.

And I think that you know we do have an attractive growth profile, we do have pretty strong growth plans and we remain committed to deploying our cash to make sure that there is return to the business.

Leah Talactac: Thanks so much. Thank you.

Speaker Change: Got it thanks, so much.

Speaker Change: Yeah.

Unknown Executive: And once again, it is star one if you wish to ask a question on today's call.

Speaker Change: Thank you and once again it is star one if you wish to ask a question on today's call. Our next question is coming from Stephen Grambling from Morgan Stanley Steven Your line is live.

Stephen Grambling: The next question is coming from Stephen Grambling from Morgan. Steven Yerlein Hi, thanks. I want to clarify some of your comments on the I think it's gross margin. Earlier, if we think about the commission's line, specifically, is that something that we should be anticipating that you'll see some leverage on or helping to drive overall gross margin expansion? Is there other mixed shifts that we should be thinking through as we as we look longer term? And so that the line item in our financials is commissions and transportation. So it's both commissions, plus for the most part air costs.

Stephen Grambling: Hi, Thanks, I wanted to clarify some of your comments on the gross margin.

Stephen Grambling: Earlier.

Stephen Grambling: Think about the commissions line, specifically is that something that we should be anticipating youll see some leverage on are helping to drive overall gross margin expansion or is there other.

Stephen Grambling: Our mix shifts that we should be thinking through as we look longer term.

Speaker Change: So that's the line item in our financials is commission and transportation. So it's both you know commissions plus plus for the most part are cost.

Leah Talactac: I think as we grow our business, our focus is yield, as we've discussed in the past. We are all inclusive. Our pricing is meant to be one number that our guests are aware of when they book the cruise with us. We don't believe in nickel and diming, et cetera. Of course, we do have ancillary revenue, which we've been able to improve upon over the years. From what we've seen thus far, our guests do want to add pre and post. They do want to add optional shore excursions. That, of course, helps with yields as well. Some of our margin expansion will definitely come from those areas.

Speaker Change: I think as we grow our business you know our focus is yield you know as we've discussed in the past we are all inclusive or pricing estimate to.

To be one number that our guests are aware of you know when they book the cruise with US we don't believe in nickel and Diming et cetera of course, we do have ancillary revenue, which we have been able to improve upon over the years from what we've seen thus far you know rguest do you want to add pre imposed they do you Wanna add optional shore excursions and that of course helps with.

Speaker Change: That's well so some of our margin expansion it will definitely come from those areas.

Leah Talactac: But I think purely from looking at one line item, that's difficult to see.

Speaker Change: But I think you know.

Speaker Change: Lee from looking at one line item that that's difficult to to see the other areas that we can see margin expansion of course is in SG&A. So as they continue to grow the business that is one area that we can see that we can leverage our marketing them as we continue to grow capacity.

Leah Talactac: The other areas that we can see margin expansion, of course, is in SG&A. As we continue to grow the business, that is one area that we can see that we can leverage our marketing as we continue to grow capacity. Fair enough.

Speaker Change: Fair enough and then maybe one other quick follow up just you mentioned, having cash available potentially for M&A and you gave your strategic framework there a little bit but are there any business models tangentially that you would outright shy away from for any reason whether it's.

Leah Talactac: Maybe one other quick follow up. You mentioned having cash available potentially for M&A and you gave your strategic framework there a little bit, but are there any business models tangentially that you would outright shy away from for any reason, whether it's volatility or other frameworks that you have in place?

Speaker Change: Volatility or other frameworks that you have in place. Thanks.

Torstein Hagen: Um, I don't know, Tor, if you have any perspective on that. Um, I think that, you know, feel that It's back to like, what can the brand support and what's complementary to the brand, because at the end of the day, whatever we may acquire or whatever we may expand our products to has to be within the brand I don't know if you have any particular... I think that, of course, one may look at a thing or two, but we are so sure that the one brand that we have is one of the reasons for our success.

Speaker Change: I Dunno Tor if you have any perspective on that I think that you know.

Speaker Change: No.

Tor: We feel that.

Tor: But where it's back to like what kinda brand support and what's complementary to the brand because at the end of the day, whatever we may acquire or whatever you may expand our products to has to be within the brand framework.

Tor: I don't know if you have any particular I think that's of course, we are.

Speaker Change: When I look at a thing or two.

So that's so.

Speaker Change: Sure the one brand that's out.

Speaker Change: It's one of the reasons for our success.

Torstein Hagen: So it will take a lot of effort to go outside that. And I'd also say we also have, you know, we're not that wider management, we're well enough for what we're doing. But you know, the moment you start to diversify, you tend to scatter your energies. So we should be very careful about that. At some time, we'll do it. But I think we'd be very careful. Fair enough.

Speaker Change: So it will take a lot of effort to do go outside that and I'd also say I'd be able to you know.

Speaker Change: No that's.

Speaker Change: Why the man.

Well enough for what they're doing they know that.

Speaker Change: When would you start to diversify it.

Speaker Change: Discuss your energies so they should be very careful about that.

Speaker Change: Sometimes it'll goods, but I think we'd be very careful.

Meredith Jensen: Thanks so much.

Speaker Change: Fair enough. Thanks, so much.

Leah Talactac: Thank you, and the next question will be from Meredith Jensen from HSBC. Meredith, your line is open. Thanks. Good morning. I was hoping you might speak a little bit more. You touched on the excursion opportunity, and just discuss a little bit the purchasing trends that you're seeing versus the past and sort of how it's varying by product and geography. And maybe as a second part, if you could talk to the partners on the ground you work with and how that may evolve over time to help support growth of the excursion business. Thanks. Sure, so I think from an optional shore excursion perspective, you know, we've been able to grow there.

Speaker Change: Thank you and the next question will be from Meredith Jensen from HSBC Meredith Your line is live.

Meredith Jensen: Thanks, Good morning, I was hoping you might speak a little bit more you touched on the excursion opportunity and just discuss a little bit the purchasing trends that you're seeing versus the past and sort of how it varies by product and geography, and maybe as a second part if you could talk.

Meredith Jensen: To the partners on the ground you work with and how that May evolve over time to help support grosses.

Speaker Change: The excursion business. Thanks.

Speaker Change: Okay.

Speaker Change: Sure. So I think from an optional sharks gershon perspective, we've been able to grow their rguest definitely if they've been to Venice before they've done the walking tour they've seen the city. They may want to augment their experience and do something different.

Leah Talactac: Our guests definitely, if they've been to Venice before, you know, they've done the walking tour, they've seen the city, they may want to augment their experience and do something different. We see that in many cities across the world and the trend has continued to stand. And another area where we see potential is pre and post land excursions. So this is adding a pre or post before or after your cruise. So two or three nights in Paris, for example, or in Prague. And so we do see our guests offer those excursions as well with us. So the trends continue to hold.

Speaker Change: We see that in many cities across the world and the trend has continued just to stand and another area, where we see potential is pre and post Ah. My next question. So this is adding a pre or post before or after your crews. So two or three nights in Paris for example are in Prague.

Speaker Change: And so we do see rguest offer those excursions as well with us. So the trends continue to hold and I think as we look forward. You know are our operations team combined with our marketing team is looking at ways to provide even a better experience. So how else we can.

Leah Talactac: And I think as we look forward, you know, our operations team combined with our marketing team is looking at ways to provide even a better experience. So how else we can package our cruises, offer pre's and post, offer optional shore excursions that will augment the experience. Because from our quality scores, we do see that guests that purchase those items with us do generally rate us slightly higher. and we're already rated quite high.

Speaker Change: Package, you know our cruises offer pre and post op or offer optional shore excursion that will augment the experience because from our quality scores. We do see that guests that purchased those items with us to generally right slightly higher.

Speaker Change: And where are you ready to quite high.

Speaker Change: Yeah.

Leah Talactac: Great.

Leah Talactac: Thanks, Linh.

Speaker Change: Great. Thanks, and then one quick addition.

Leah Talactac: One quick addition. I know in the past, the ocean cruise, you know, total ticket price would be higher given it's on average more days than river. And I know you don't very itinerate all that dramatically. Maybe excluding the world cruise, is that sort of the same pattern of, you know, 11 days for cruise and eight days for river? Or is there some variation we might look to? Thanks.

Speaker Change: I know in the past the ocean cruise either a total ticket price would be higher given it's on average are more days than river.

Speaker Change: And I know you don't vary itinerary all that dramatically.

Speaker Change: Maybe excluding the world cruises that sort of the same pattern as you know 11 days for cruise and eight days for river or is there some variation we might look to thanks.

Speaker Change: Yeah.

Leah Talactac: Now, that's pretty consistent. I think, you know, As we look forward, Ocean Cruises is about 10 to 11 nights on average, and for rivers, it's 7 to 8, so that stayed pretty consistent.

Speaker Change #100: No that's pretty consistent I think.

Speaker Change #100: As we look forward Ocean crews. This is about 10 to 11 nights on average and for a reverse its seven to eight so that stayed pretty consistent.

Leah Talactac: Great, thanks. Thank you.

Speaker Change #101: Great. Thanks.

Speaker Change #100: Right.

Unknown Executive: There were no other questions at this time.

Thank you there are no other questions at this time I would now like to hand, the call back to Tom Hagen, Chairman and CEO at Viking cruises for closing remarks.

Torstein Hagen: I would now like to hand the call back to Tor Hagen, Chairman and CEO at Viking Cruises, for closing remarks. I want to thank everyone for joining in, in today's call. Fortunately, I've been quite pleased with the results and I hope you will share in them and also be pleased with the outlook. So I appreciate all the attendance here and we look forward to many good calls like this. I thank you for your support and the interest in Viking. I wish you a great day.

Speaker Change #100:

I want to thank everyone for joining in today's call of course, they have been quite a piece of the results.

Speaker Change #100: I hope you will share in them and they all of them.

Speaker Change #100: So the outlook.

Speaker Change #100: So it's.

Speaker Change #100: I appreciate all that all the time is here.

Speaker Change #100: We look forward to many good calls like this.

Speaker Change #102: Thank you for your support and interest in Viking.

Speaker Change #103: Great day thank.

Unknown Executive: Thank you.

Thank you.

Unknown Executive: This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

Speaker Change #104: Thank you. This does conclude today's conference you may disconnect. Your lines at this time. Thank you for your participation.