IPO-bound Viking reveals 50% revenue jump, loss in 2023

Viking Holdings, known for its ocean and river cruises, filed a public registration statement on Friday (April 5) with the U.S. Securities and Exchange Commission (the "SEC") relating to a proposed initial public offering of its ordinary shares.

The number of ordinary shares to be offered and the price range for the proposed offering have not yet been determined, according to a press release.

Viking, which was founded in 1997, intends to list its ordinary shares on the New York Stock Exchange under the ticker symbol "VIK."

The update comes as Viking reports rapid growth, with its total number of guests, total revenue, net income, and Adjusted EBITDA growing at compound annual growth rates of 10.1 per cent, 14.4 per cent, not measurable, and 16.3 per cent, respectively, from 2015 to 2023.

For 2023, Viking reported holding a 51 per cent market share in the North American outbound river market, 26 per cent in luxury ocean cruising, 12 per cent in Antarctic expeditions, and 20 per cent in Mississippi river cruises.

The company's expansion into various types of cruising, including river, ocean, and expedition, has been a key driver of its growth.

Last year’s revenue stood at $4.71 billion compared with $3.18 billion a year earlier, reports Reuters. But the company still reported a net loss during the same period of $1.86 billion, versus a profit of $398.5 million in 2022.

The year 2024 is set to be a banner year for cruise travel, analysts have said, as customers from across all income levels are booking vacations.

According to a report in Seatrade Cruise News, Viking’s 292-page filing sheds light on the company's performance and plans.

Viking currently has 24 ships on order, with options for 12 more and has started to enter new markets, such as China and elsewhere in Asia, “where we see significant growth potential over the long term,” Viking Chairman Torstein Hagen wrote.

Hagen also noted that Viking relies on direct marketing to drive the majority of bookings. “We have the ability to generate demand rather than wait for third parties to do so for us,” he wrote.

In 2023, more than 50 per cent of passengers booked directly with the company, which has a database of 56 million North American households.

Viking’s proposed offering is subject to market and other conditions, the company says, and there is no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

BofA Securities, J.P. Morgan, UBS Investment Bank, Wells Fargo Securities, HSBC and Morgan Stanley are the lead underwriters for the IPO.

Viking’s fleet today consists of more than 80 ships, including river, ocean, and expedition vessels.

Don't miss a single travel story: subscribe to PAX today!  Click here to follow PAX on Facebook.