SECOND QUARTER OF 2024

(compared to the second quarter of 2023)

• Sales amounted to EUR 125.9 million (EUR 132.4 million). 
• Other operating revenue was EUR 0.2 million (EUR 0.1 million). 
• Operating income totalled EUR 6.2 million (EUR 18.0 million). 
• Net financial items were EUR -4.3 million (EUR -3.9 million). 
• Income before taxes totalled EUR 1.8 million (EUR 14.0 million). 
• Income after taxes was EUR 1.8 million (EUR 11.1 million).

The total number of passengers on the Group’s vessels during the January - June 2024 report period was 2,062,271 (2,185,843). The Group had a total market share in its service area of approximately 33.0% (34.8%). The number of passengers on BIRKA GOTLAND since the launch of service was 139,062.

The Group’s total cargo volume was 66,385 cargo units (64,872). The Group’s share of the cargo market was approximately 16.8% (16.9%). The growth in volume is directly linked to increased demand for transport in the international transport market at the end of the period. The increase in cargo volumes is due to an improved economic outlook for Finland’s most important export markets and for global trade. During the period, political strikes in Finland had a negative impact on transport. However, with expanded service on its Helsinki-Mariehamn-Stockholm route, Viking Line was able to increase cargo volumes compared to previous years.

The market share for passenger cars was approximately 28.5% (27.3%).

COMMENTS FROM PRESIDENT AND CEO JAN HANSES

Results for the first six months of the year were characterized by consumer caution. The Finnish economy is in recession and the recovery is going slowly. While inflation in Finland has eased, this is not reflected so far in consumer behaviour. The weak Swedish krona has reduced purchasing power in the Swedish market.

The launch of Gotland Alandia Cruises has entailed additional one-off costs while occupancy rates during the period up to June did not meet our expectations. Occupancy rates have improved during the summer and are expected to remain at a good level during the autumn.

In April, VIKING GLORY was dry-docked. The date for the dry-docking, originally planned for January 2025, was moved up. In addition, VIKING GRACE and GABRIELLA both had unplanned service disruptions in April and May.

Results for the first six months of the year excluding one-off items and particularly for the second quarter were thus weaker than expected. However, it is gratifying that ticket proceeds reached our targets, so we have been able to offset the cost of emission allowances, which are to be surrendered starting on in 2024. The geopolitical situation, with war in nearby regions, has not had any noticeable impact on people’s propensity to travel but contributes to continued uncertainty about energy prices.

Results for the 2024 peak season are on a par with results for the same period last year, while our outlook for the autumn is characterized by some degree of uncertainty.

Maritime transport is being impacted at present by future environmental standards. Starting this year, our operations are subject to the EU Emissions Trading System, which means that we are now obliged to shoulder the cost of emission allowances, which in the medium term we can only partly offset through our continued energy efficiency work. The lack of alternative fuels at realistic prices is the greatest challenge for the industry. Viking Line works actively for reduced emissions in various projects. Passengers and cargo customers on the Turku–Mariehamn/Långnäs-Stockholm route can now reduce their climate impact by purchasing renewable biofuel in proportion to the amount used for their travel and thus reduce carbon dioxide emissions from their journey by up to 90 per cent. Viking Line is also taking part in two major projects where work is being carried out to create green transport corridors for the Helsinki-Tallinn and Turku-Åland-Stockholm routes.

The first six months of 2024 have entailed changes in our operations, with expanded service between Finland and Sweden and the launch of cruise service in partnership with Gotlandsbolaget. This has entailed changes for our staff in the form of switches to our other vessels and reflaggings. Because of these changes, we have been able to hire new staff since the number of vessels in the fleet has increased

I would like to extend my warm thanks to our customers and partners for the faith they have shown in us and their good cooperation. I would also like to give a big thank you to our staff for their fine performance during this period.

Read the full report https://news.cision.com/viking-line-abp/r/viking-line--half-year-financial-report-january---june-2024,c4024665