Viking Line Abp BUSINESS REVIEW
24.4.2025, 9.00 AM
A quarter characterized by ship dockings and a challenging market environment
JANUARY-MARCH2025
(compared to January-March2024)
· Sales amounted to EUR 87.3M(EUR 93.2 M).
· Other operating revenue was EUR 0.4Meur(EUR 0.4M).
· Operating income totalledEUR -18.0M(EUR -10.4M).
· Net financial items wereEUR -4.0M(EUR -3.8M).
· Income before taxes totalled EUR-22.0M(EUR -14.2M).
· Income after taxes was EUR -22.1M(EUR -14,3M).
· Investments mainly in Gabriella and Viking XPRS totalled EUR 9.0 M (EUR 10.2
M mainly in Viking Cinderella and Birka Gotland).
Significant uncertainty prevails as a result of the economic downturn in our
traffic area in recent years, which has negatively affected customer consumption
patterns. Uncertainty is also contributed by the current geopolitical situation
and its potential impact mainly on energy prices. This uncertainty makes it
difficult to predict passenger-related market developments. The Board assesses
that the result before taxes for 2025 will be in line with 2024, which is the
same conclusion as at the latest reporting occasion.
COMMENTS FROM PRESIDENT AND CEO JAN HANSES
During the first quarter of the year, we achieved a result that is in line with
our expectations, but weaker than the previous year. The main reason for this is
that we docked two vessels during the period. Demand in our markets remains
somewhat weak and is reflected in passenger volumes, although on-board
consumption is slightly stronger than last year. The weak economic development
in our service area leads to continued cautiousness among consumers.
We expect improved demand during the second quarter, although this improvement
may be shifted towards the latter part of the quarter. The strengthening of the
Swedish krona at the end of March improves our conditions in the Swedish market.
During the quarter, Gabriella and Viking XPRS were docked. Gabriella's docking
was of a technical nature, while Viking XPRS's public areas have been
refurbished in combination with a rebuild of the vessel's shop area. Our joint
venture company, Gotland Alandia Cruises, is affected by the same market
conditions that apply to our other traffic, and the result has not yet fully met
our expectations.
From January, the result is also burdened by increased fairway fees in Finland
as a result of the halving of the fees that was carried out in connection with
the implementation of the so-called sulfur directive being reversed.
Furthermore, from the beginning of the year, increased ETS fees are also levied,
which now correspond to 70 percent of a fully implemented emission trading
system. Our operations are currently greatly affected by upcoming environmental
standards, and we are subjected to a cost burden that in the medium term can
only be partially mitigated through continued work with energy efficiency. The
availability of alternative fuels for shipping remains poor.
In summary, I can state that the first quarter of 2025 has been characterized by
a relatively heavy docking program and a challenging market situation, where we
hope for a change for the upcoming high season.
I would like to extend a warm thank you to our customers and partners for their
trust and good cooperation. A big thank you also goes to our staff who have
contributed to achieving record-high customer satisfaction scores.
SUMMARY OF KEY FIGURES
Jan 1, 2025- Jan 1, 2024- Jan 1, 2024-
EUR M Mar 31, 2025 Mar 31, 2024 Dec 31, 2024
Sales 87.3 93.2 480.2
Other operating revenue 0.4 0.4 1.4
Operating income -18.0 -10.4 26.7
Income before taxes -22.0 -14.2 19.8
Income for the period -22.1 -14.3 15.9
SERVICE AND MARKET
During the report period, the Viking Line group provided passenger and cargo
services using five wholly-owned vessels in the northern Baltic Sea and Gulf of
Finland during the year.
Gabriella was docked during the period January 1 to 18. Viking XPRS was docked
during the period January 18 to February 6. From January 21 to February 6, she
was replaced by Viking Cinderella on the Helsinki-Tallinn route, which then
returned to her regular traffic on the Helsinki-Mariehamn-Stockholm route. Birka
Gotland, which Viking Line owns together with Gotlandsbolaget, had a planned
traffic break during the period January 6 to 15.
During the comparison period, March 20, 2024, the jointly owned vessel Birka
Gotland began its cruise traffic from Stockholm. Before the start of traffic, a
major docking and upgrading of the vessel was carried out. During the comparison
period, Viking Cinderella was also docked, after which she was removed from the
Swedish ship register and entered into the Åland ship register.
The number of passengers on the group's wholly owned vessels amounted to 767,353
(871,828) during the reporting period. The group had a total market share within
the traffic area of approximately 31.2% (34.6%). The number of passengers on
Birka Gotland amounted to 108,359 (14,975 for the period March 20-31, 2024).
Passenger volume decreased compared to the corresponding period of the previous
year, which is largely related to the occurrence of Easter, which took place in
March last year and takes place in April this year. In addition, extensive
traffic deviations occurred due to vessel docking, which causes comparison
-distorting effects during the period.
Demand development during the first quarter was weak compared to the previous
year. Passenger volumes between Finland and Sweden decreased, and the market
between Finland and Estonia also saw a decline. Viking Line's market share in
traffic between Finland and Sweden increased, mainly thanks to Viking Cinderella
being put into traffic between Helsinki, Mariehamn, and Stockholm. In traffic
between Finland and Estonia, the market share decreased slightly, which was due
to Viking XPRS being docked for a period.
The group's total cargo volumes amounted to 36,352 cargo units (32,993). The
group's cargo market share was estimated at 20.5% (17.4%). Viking Line's focus
on long-term business relationships, traffic structure, and the implementation
of the green corridor for cargo units and trade goods between Finland and Sweden
has resulted in a very positive volume outcome despite an otherwise declining
market. The persistent geopolitical and political uncertainty has led to the
expected growth not materializing in the international transport market within
our market area. The decreased transport demand is a direct result of this
uncertainty and the lack of clear long-term prospects in international trade
between countries.
The market share for passenger cars was estimated at approximately 26.0%
(29.9%).
The recent increase in geopolitical concern creates uncertainties about demand
development in the near future for both the passenger and cargo market.
SALES AND EARNINGS FOR JANUARY - MARCH 2025
Consolidated sales decreased by 6.3% to EUR 87.3 M during the period January 1 -
March 31, 2025 (EUR 93.2 M January 1 - March 31, 2024). Operating income
amounted to EUR -18.0 M (EUR -10.4 M). Consolidated income before tax amounted
to EUR -22.0 M (EUR -14.2 M).
The deterioration compared to 2024 is mainly due to reduced demand in our
markets and the docking of two vessels during the period, which negatively
affected our capacity and revenue. The results for the beginning of the year are
weak, reflecting the challenges we face. Despite this, we see improved demand
during the second quarter, especially towards the end of the period, which may
contribute to positive development going forward. Additionally, Easter fell in
the second quarter of 2025 compared to the first quarter of 2024.
Passenger-related revenue decreased by 8.8% to EUR 72.7 M (EUR 79.7 M), while
cargo sales increased by 11.7% to EUR 14.2 M (EUR 12.7 M), and other operating
revenue was EUR 0.5 M (EUR 0.8 M). The sales contribution was EUR 68.8 M (EUR
71.7 M).
Operating expenses increased by 6.0% to EUR 79.6 M (EUR 75.1 M), of which the
costs for emission allowances were EUR 1.4 M (EUR 1.0 M). Salary and other
employment benefit expenses increased by 2.6% or EUR 0.7 M, with the majority of
the increase due to Viking Line staffing Birka Gotland with service personnel.
Other operating costs increased by 8.1% or EUR 3.8 M. Increased costs for
emission allowances, higher fairway fees, and repair and maintenance costs
during dockings account for a large part of the increase. Other operating
expenses also include a provision for repayment of traffic support received
during the pandemic years of EUR 1.1 M.
INVESTMENTS AND FINANCING
The group's investments for the period January 1 to March 31, 2025, amounted to
EUR 9.0 M (EUR 10.2 M). The group's total investments represented 10.3% of sales
(10.9%). The majority of investments can be attributed to the dockings of
Gabriella and Viking XPRS, which were extensive. The comparison year's
investments mainly consisted of investments in connection with the dockings of
Viking Cinderella and the jointly owned vessel Birka Gotland.
The group's long-term interest-bearing liabilities amounted to EUR 120.0 M on
March 31, 2025 (EUR 141.1 M). It is noteworthy that the group's loans for
financing Viking Grace were fully repaid in January 2025.
The debt/equity ratio was 52.5% compared to 50.1% the previous year.
The Group's cash and cash equivalents amounted to EUR 26.0 M at the end of March
(EUR 65.7 M). Unutilized credit lines in the Group totalled EUR 22.1 M (EUR 0.1
M).
Net cash flow from operating activities amounted to EUR -10.0 M (EUR 1.3 M). Net
cash flow from investing activities was EUR -9.0 M (EUR -10.1 M), and net cash
flow from financing activities amounted to EUR -10.8 M (EUR -10.8 M).
The group's loan agreements contain market-based loan covenants. The financial
covenants in the loan agreements consist of minimum requirements for liquid
assets and solvency, as well as a maximum level of the group's total financial
net debt in relation to EBITDA.
The dividend restriction that exists in one of the group's loan agreements
remains in effect if the group's indebtedness in relation to EBITDA exceeds the
ratio of 5.0. The group's indebtedness in relation to EBITDA is below the ratio
of 5.0, therefore the dividend restriction is not in effect.
Future cash flows related to financial liabilities on March 31, 2025:
EUR
M
Future cash flows Lease Trade Interest- Total
related to
financial liabilities liabilities payables bearing
(incl. financial
expenses)
liabilities
Apr 1, 2025 - Sep 30, 1.3 24.2 14.1 39.6
2025
Oct 1, 2025 - Mar 31, 1.3 13.8 15.1
2026
Apr 1, 2026 - Mar 31, 1.1 33.8 34.9
2027
Apr 1, 2027 - Mar 31, 0.9 23.9 24.8
2028
Apr 1, 2028 - Mar 31, 0.6 19.6 20.3
2029
Apr 1, 2029 - Mar 31, 0.5 15.7 16.1
2030
Apr 1, 2030 - 0.3 46.2 46.5
Total 6.1 24.2 167.0 197.3
IMPAIRMENT TESTING
The reported values for intangible and tangible assets are regularly tested to
detect any external or internal indications of impairment needs. If such
indications are observed for any asset item, its recoverable value is
determined. One of the most important areas involving assessments is the
valuation of the group's vessels.
Management has also assessed that there is no need for impairment for the
group's other long-term assets.
ORGANIZATION AND PERSONNEL
The average number of employees converted to full-time positions in the Group
was 2,258 (2,149), of which in the parent company 1,852 (1,680). The number of
land-based personnel was 444 (454) and shipboard personnel 1,815 (1,694).
277 people (81) employed in one of Viking Line Abp's subsidiaries have been
rented out to the associated company Gotland Alandia Cruises AB, which operates
cruise traffic with the vessel Birka Gotland during the period. The personnel
rented out by Viking Line have mainly been service personnel.
During the comparison period, Viking Cinderella was reflagged from Swedish to
Finnish flag.
RISK FACTORS
Viking Line's operations are exposed to risks of various kinds, with varying
scope and impact on operations, financial results, and the company's ability to
meet certain social and environmental goals. The relevant risks have been
classified into four categories: strategic, operational, damage, and financial
risks. During the fiscal year 2025, Viking Line is working to expand the
classification with a category for sustainability risks. The risks remain
unchanged since the annual report was published.
The company's interest-bearing liabilities amounted to EUR 141.8 M as of March
31, 2025, of which 92.2% have a variable interest rate. The total variable
interest rate consists of the market interest rate and a company-specific
margin. Fluctuating interest rates have an impact on the company's financing
costs and can affect the costs of financing in the future.
Regarding the review of the traffic support that passenger ship companies that
operated in Finland received during the pandemic years 2020-2022, Viking Line
has since the annual report received information that some form of repayment
will be required. Viking Line has reserved EUR 1.1 M for this purpose.
OUTLOOK FOR THE FINANCIAL YEAR 2025
Significant uncertainty prevails as a result of the economic downturn in our
traffic area in recent years, which has negatively affected customer consumption
patterns. Uncertainty is also contributed by the current geopolitical situation
and its potential impact mainly on energy prices. This uncertainty makes it
difficult to predict passenger-related market developments. The Board assesses
that the result before taxes for 2025 will be in line with 2024, which is the
same conclusion as at the latest reporting occasion.
EVENTS AFTER THE BALANCE SHEET DATE
To somewhat counteract the risk of increased bunker prices, the group has
entered into fixed price agreements regarding parts of MDO consumption for May
-December 2025 after March 31, 2025.
Mariehamn, April 23, 2025
VIKING LINE ABP
Jan Hanses
President and CEO
Financial information:
The management's Business Review was prepared in accordance with IFRS accounting
and valuation principles. The accounting and valuation principles applied are
the same as for the year-end financial statements for 2024. The figures have not
been audited.
CONSOLIDATED INCOME STATEMENT
Jan 1, 2025- Jan 1, 2024- Jan 1, 2024-
EUR M Mar 31, 2025 Mar 31, 2024 Dec 31, 2024
SALES 87.3 93.2 480.2
Other operating revenue 0.4 0.4 1.4
Expenses
Goods and services 18.5 21.5 102.5
Salary and other employment 28.7 28.0 120.9
benefit expenses
Depreciation, amortization 7.7 7.5 29.3
and impairment losses
Other operating expenses 50.8 47.1 202.2
105.8 104.1 454.8
OPERATING INCOME -18.0 -10.4 26.7
Financial income 0.3 0.9 2.9
Financial expenses -2.3 -3.4 -11.2
Share of after-tax income -1.9 -1.2 1.4
from joint ventures and
companies with a
participating interest
undertaking
accounted for using the
equity method
INCOME BEFORE TAXES -22.0 -14.2 19.8
Income taxes -0.1 -0.1 -3.8
INCOME FOR THE PERIOD -22.1 -14.3 15.9
Income attributable to:
Parent company shareholders -22.1 -14.3 15.9
Earnings per share, EUR -1.28 -0.82 0.92
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
Jan 1, 2025- Jan 1, 2024- Jan 1, 2024-
EUR M Mar 31, 2025 Mar 31, 2024 Dec 31, 2024
INCOME FOR THE PERIOD -22.1 -14.3 15.9
Items that may be
reclassified to the income
statement
Translation differences 1.4 -0.9 -0.4
Items that will not be
reclassified to the income
statement
Changes in the fair value of
financial assets at fair
value
through other comprehensive 0.0 0.0 0.0
income
Other comprehensive income 1.4 -0.9 -0.4
COMPREHENSIVE INCOME FOR THE -20.7 -15.1 15.6
PERIOD
Comprehensive income
attributable to:
Parent company shareholders -20.7 -15.1 15.6
CONSOLIDATED INCOME STATEMENT BY QUARTER
2025 2024 2024 2024 2024
EUR M Q1 Q4 Q3 Q2 Q1
SALES 87.3 109.5 151.5 125.9 93.2
Other operating revenue 0.4 0.6 0.2 0.2 0.4
Expenses
Goods and services 18.5 23.5 30.2 27.3 21.5
Salary and other 28.7 30.6 30.7 31.6 28.0
employment benefit
expenses
Depreciation, 7.7 6.8 7.5 7.6 7.5
amortization and
impairment losses
Other operating expenses 50.8 47.8 53.8 53.5 47.1
105.8 108.6 122.2 119.9 104.1
OPERATING INCOME -18.0 1.5 29.4 6.2 -10.4
Financial income 0.3 1.2 0.3 0.5 0.9
Financial expenses -2.3 -2.0 -3.0 -2.8 -3.4
Share of after-tax income -1.9 2.9 1.7 -2.0 -1.2
from joint ventures and
companies with a
participating interest
undertaking
accounted for using the
equity method
INCOME BEFORE TAXES -22.0 3.7 28.4 1.8 -14.2
Income taxes -0.1 -0.2 -3.5 -0.1 -0.1
INCOME FOR THE PERIOD -22.1 3.5 24.9 1.8 -14.3
Income attributable to:
Parent company -22.1 3.5 24.9 1.8 -14.3
shareholders
Earnings per share, EUR -1.28 0.20 1.44 0.10 -0.82
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME BY QUARTER
2025 2024 2024 2024 2024
EUR M Q1 Q4 Q3 Q2 Q1
INCOME FOR THE PERIOD -22.1 3.5 24.9 1.8 -14.3
Items that may be
reclassified to the income
statement
Translation differences 1.4 0.0 0.1 0.3 -0.9
Items that will not be
reclassified to the income
statement
Changes in the fair value of
financial assets at fair
value
through other comprehensive 0.0 0.0 0.0 0.0 0.0
income
Other comprehensive income 1.4 0.0 0.1 0.3 -0.9
COMPREHENSIVE INCOME FOR THE -20.7 3.6 25.1 2.1 -15.1
PERIOD
Comprehensive income
attributable to:
Parent company shareholders -20.7 3.6 25.1 2.1 -15.1
CONSOLIDATED BALANCE SHEET
EUR M Mar 31, 2025 Mar 31, 2024 Dec 31, 2024
ASSETS
Non-current assets
Intangible assets 9.9 6.1 8.1
Land 0.5 0.5 0.5
Buildings and structures 1.6 1.6 1.6
Renovation costs for rented 1.5 1.0 1.5
properties
Vessels 424.9 436.9 423.5
Machinery and equipment 2.7 2.6 2.6
Right-of-use assets 4.8 4.3 5.2
Financial assets at fair
value through
other comprehensive income 0.0 0.0 0.0
Investments accounted for 55.6 53.0 54.6
using the equity method
Receivables - 0.5 -
Total non-current assets 501.5 506.6 497.7
Current assets
Inventories 14.8 13.9 13.4
Income tax assets 0.1 0.1 0.1
Trade and other receivables 49.2 45.8 40.4
Cash and cash equivalents 26.0 65.7 55.8
Total current assets 90.1 125.4 109.7
TOTAL ASSETS 591.7 632.0 607.4
EQUITY AND LIABILITIES
Equity
Share capital 1.8 1.8 1.8
Reserves 49.7 49.7 49.6
Translation differences -2.9 -3.6 -3.6
Retained earnings 252.2 260.3 273.6
Equity attributable to 300.8 308.1 321.5
parent company shareholders
Total equity 300.8 308.1 321.5
Non-current liabilities
Deferred tax liabilities 49.1 45.1 49.0
Interest-bearing liabilities 120.0 141.1 122.5
Lease liabilities 3.1 3.4 3.3
Investments accounted for 3.5 4.4 0.5
using the equity method
Other payables 1.4 2.0 1.5
Total non-current 177.2 196.0 176.8
liabilities
Current liabilities
Interest-bearing liabilities 21.8 36.7 29.2
Lease liabilities 2.4 2.7 2.7
Income tax liabilities 0.0 0.0 0.0
Trade and other payables 89.4 88.4 77.1
Total current liabilities 113.6 127.8 109.0
Total liabilities 290.8 323.9 285.9
TOTAL EQUITY AND LIABILITIES 591.7 632.0 607.4
CONSOLIDATED CASH FLOW
STATEMENT
Jan 1, 2025- Jan 1, 2024- Jan 1, 2024-
EUR M Mar 31, 2025 Mar 31, 2024 Dec 31, 2024
OPERATING ACTIVITIES
Income for the period -22.1 -14.3 15.9
Adjustments
Depreciation, amortization 7.7 7.5 29.3
and impairment losses
Capital gains/losses from - - 0.0
non-current assets
Income from investments in 1.9 1.2 -1.4
associate companies
Other items not included 0.2 -0.2 -0.1
in cash flow
Interest expenses and 1.9 3.3 11.1
other financial expenses
Interest income and other -0.2 -0.6 -2.4
financial income
Dividend income - - 0.0
Income taxes 0.1 0.1 3.8
Change in working capital
Change in trade and other -8.8 -5.6 -0.3
receivables
Change in inventories -1.4 -1.1 -0.6
Change in trade and other 11.2 11.5 1.7
payables
Interest paid -0.5 -1.0 -9.8
Financial expenses paid -0.1 -0.1 -0.7
Interest received 0.2 0.4 2.4
Financial income received 0.0 0.2 0.1
Taxes paid -0.1 0.0 0.0
NET CASH FLOW FROM OPERATING -10.0 1.3 49.0
ACTIVITIES
INVESTING ACTIVITIES
Investments in vessels -6.8 -8.9 -14.4
Investments in other -2.2 -1.2 -5.1
intangible assets, property,
plant and equipment
Investments accounted for 0.0 0.0 -5.0
using the equity method
Divestments of other non - - 0.0
-current assets
Change in non-current - 0.1 0.6
receivables
Dividends received from - - 2.2
associate companies
Dividends received from - - 0.0
others
NET CASH FLOW FROM INVESTING -9.0 -10.1 -21.7
ACTIVITIES
FINANCING ACTIVITIES
Principal payments -10.1 -10.1 -36.7
Depreciation of lease -0.7 -0.7 -2.8
liabilities
Dividends paid - - -17.3
NET CASH FLOW FROM FINANCING -10.8 -10.8 -56.7
ACTIVITIES
CHANGE IN CASH AND CASH -29.8 -19.7 -29.5
EQUIVALENTS
Cash and cash equivalents at 55.8 85.3 85.3
the beginning of the period
CASH AND CASH EQUIVALENTS AT 26.0 65.7 55.8
THE END OF THE PERIOD
STATEMENT OF CHANGES IN
CONSOLIDATED EQUITY
Equity
attributable
to parent
company
shareholders
Share Translation Retained Total
EUR M capital Reserves differences earnings equity
EQUITY, JAN 1, 2025 1.8 49.6 -3.6 273.6 321.5
Income for the period -22.1 -22.1
Translation differences 0.0 0.7 0.6 1.4
Remeasurement of
financial assets
recognized at
fair value through 0.0 - 0.0
other comprehensive
income
Comprehensive income - 0.0 0.7 -21.4 -20.7
for the period
EQUITY, MAR 31, 2025 1.8 49.7 -2.9 252.2 300.8
Equity
attributable
to parent
company
shareholders
Share Translation Retained Total
EUR M capital Reserves differences earnings equity
EQUITY, JAN 1, 2024 1.8 49.7 -3.2 275.0 323.2
Income for the period -14.3 -14.3
Translation differences 0.0 -0.4 -0.5 -0.9
Remeasurement of
financial assets
recognized at
fair value through 0.0 0.0 0.0
other comprehensive
income
Comprehensive income - 0.0 -0.4 -14.7 -15.1
for the period
EQUITY, MAR 31, 2024 1.8 49.7 -3.6 260.3 308.1
KEY METRICS
Jan 1, 2025- Jan 1, 2024- Jan 1, 2024-
Mar 31, 2025 Mar 31, 2024 Dec 31, 2024
Equity per share, EUR 17.41 17.83 18.61
Equity/assets ratio 52.5 % 50.1 % 54.0 %
Investments, EUR M 9.0 10.2 24.6
- as % of sales 10.3 % 10.9 % 5.1 %
Passengers 767,353 871,828 4,646,676
Cargo units 36,352 32,993 134,219
Average number of 2,258 2,149 2,403
employees, full-time
equivalent
Equity per share = Equity attributable to parent company shareholders / Number
of shares.
Equity/assets ratio, % = (Equity including minority interest) / (Total assets -
advances received).
When rounding off items to the nearest EUR 1,000,000, rounding-off differences
of EUR +/- 0.1 M may occur.
This Business Review has been partially translated by artificial intelligence.
Jan Hanses
President and CEO
jan.hanses@vikingline.com
+358-(0)18-270 00