Viking Line Abp HALF YEAR FINANCIAL REPORT August 15,
2025 9.00 AM
A challenging half-year with improved results in the second quarter
SECOND QUARTER OF 2025
(compared to the second quarter of 2024)
· Sales amounted to EUR 128.4 M (EUR 125.9 M).
· Other operating revenue was EUR 0.2 M (EUR 0.2 M).
· Operating income totalled EUR 6.9 M (EUR 6.2 M).
· Net financial items were EUR -2.0 M (EUR -4.3 M).
· Income before taxes totalled EUR 4.8 M (EUR 1.8 M).
· Income after taxes was EUR 4.8 M (EUR 1.8 M).
JANUARY-JUNE2025
(compared to January-June2024)
· Sales amounted to EUR 215.8 M (EUR 219.1 M).
· Other operating revenue was EUR 0.6 M (EUR 0.6 M).
· Other operating income totalled EUR -11.2 M (EUR -4.3 M).
· Net financial items were EUR -6.0 M (EUR -8.1 M).
· Income before taxes totalled EUR -17.2 M (EUR -12.4 M).
· Income after taxes was EUR -17.3 M (EUR -12.5 M).
· Investments, mainly in Gabriella and Viking XPRS, totalled EUR 12.4 M (EUR
15.4 M, mainly in Viking Cinderella and Birka Gotland).
· The Board of Directors, at its regular meeting on August 14, 2025 and in
accordance with the authorization of the Annual General Meeting of April 24,
2025, decided to distribute a second instalment dividend of EUR 0.50 per share,
totalling EUR 8.6 M, with the record date August 18, 2025 and the payment date
August 25, 2025.
Significant uncertainty remains as a result of the economic downturn in our
traffic area in recent years, which has negatively affected customer spending
patterns. The current geopolitical situation and its potential impact,
particularly on energy prices, also contribute to the uncertainty. This makes it
difficult to predict passenger-related market developments. The Board estimates
that pre-tax profits for 2025 will be on par with 2024, which is the same
conclusion as in the previous reporting period.
COMMENTS FROM PRESIDENT AND CEO JAN HANSES
The profit trend in the second quarter of the year was stronger than during the
same period last year. The profit improvement was seen in all months of the
quarter. Thus, our expectation of profit improvement during April-June was
fulfilled, albeit still at modest levels. The development in demand has been
slightly positive, but the positive trend was delayed, as we warned in our
previous Business Review. The weak economic development in our traffic area
continues to cause caution among consumers.
The half-year result continues to be burdened by the dockings of Gabriella and
Viking XPRS, but we expect a continued strengthening of profit development so
that a full-year result in line with last year can be achieved. Demand during
the high season months of July and August is forecasted to be good, while the
outlook for the autumn remains uncertain.
Our Joint Venture company, Gotland Alandia Cruises, is affected by the same
market conditions as our other operations and the results still do not fully
meet our expectations, but the same trend as for the rest of the traffic can be
expected here as well.
From January, results have also been impacted by increased fairway dues in
Finland, as a result of the halving of fees introduced with the implementation
of the so-called Sulphur Directive now being reversed. Further, since the
beginning of the year, increased fees have also been collected from the EU
Emissions Trading System, which now accounts for 70 percent of a fully
implemented emissions trading system. Our operations are currently heavily
influenced by upcoming environmental regulations, and we are bearing a cost
burden that in the medium term can only be partially mitigated by ongoing work
on energy efficiency. The availability of alternative fuels for shipping remains
poor.
In summary, I can state that the first half of 2025 has been characterized by a
relatively heavy docking program and a challenging market situation, where we
hope for a change during the third quarter.
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 us achieving record-high customer satisfaction levels.
KEY METRICS, SUMMARY
Apr 1, Apr 1, 2024- Jan 1, 2025- Jan 1, 2024- Jan 1, 2024-
2025-
EUR M Jun Jun 30, 2024 Jun 30, 2025 Jun 30, 2024 Dec 31, 2024
30,
2025
Sales 128.4 125.9 215.8 219.1 480.2
Other 0.2 0.2 0.6 0.6 1.4
operating
revenue
Operating 6.9 6.2 -11.2 -4.3 26.7
income
Income 4.8 1.8 -17.2 -12.4 19.8
before
taxes
Income for 4.8 1.8 -17.3 -12.5 15.9
the period
SERVICE AND MARKET
During the reporting period, the Viking Line Group operated passenger and
freight traffic with five wholly owned vessels and one jointly owned vessel in
the northern Baltic Sea and the Gulf of Finland.
Gabriella was docked from January 1 to January 18. Viking XPRS was docked from
January 18 to February 6. From January 21 to February 6, Viking Cinderella
replaced her on the Helsinki-Tallinn route, after which she returned to her
regular route between Helsinki-Mariehamn-Stockholm. Birka Gotland, which Viking
Line owns together with Gotlandsbolaget, had a planned service break from
January 6 to January 15.
From June 19 to August 10, the vessels Gabriella and Viking Cinderella make
calls via Tallinn during their regular traffic on the
Helsinki-Mariehamn-Stockholm route. In June, these vessels also made several
destination cruises to Visby from Helsinki.
During the comparison period, on March 20, 2024, the jointly owned vessel Birka
Gotland began cruise operations from Stockholm. Before the traffic started, a
major docking and upgrade of the vessel was carried out. During the comparison
period, Viking Cinderella and Viking Glory were also docked. After the docking
of Cinderella, she was removed from the Swedish ship register and entered into
the Åland ship register.
The number of passengers on the Group's fully owned vessels during the period
was 2,003,861 (2,062,271). The Group had a total market share in the traffic
area of approximately 31.6% (33.0%). The number of passengers on Birka Gotland
was 255,930 (139,062 for the period March 20 to June 30, 2024).
Passenger volume decreased compared with the same period last year, mainly due
to dockings and vessel rerouting, which caused comparison-distorting effects.
Cruise demand has also been fluctuating, especially on the Turku-Åland-Stockholm
line, mainly explained by the subdued economic situation in the main markets
Finland and Sweden.
However, demand during the period was in line with last year. Passenger volumes
between Finland and Sweden increased, driven by higher trip frequency as
Cinderella operated the Helsinki-Mariehamn-Stockholm route for most of the
period. The market between Finland and Estonia was stable. Viking Line's market
share in Finland-Sweden traffic rose to 60.8% (59.7%). In traffic between
Finland and Estonia, the market share decreased slightly, mainly because Viking
XPRS was docked at the beginning of the year.
The Group's total freight volume amounted to 71,324 cargo units (66,385). The
Group's freight market share was estimated at 19.5% (16.8%).
Viking Line's positive trend with freight volume development continues, despite
a declining market in our traffic area - partly thanks to our biogas product
“Green Shipping on Demand” whose development has exceeded expectations. In
addition to the positive volume trend, we have now also noticed a slightly
improved balance in traffic, which is hopefully a sign that Finland's economy is
recovering. The international transport market reports improved prospects for
autumn as various energy transition projects begin to be implemented and falling
interest rates lead to increased activity in construction.
The market share for passenger cars was estimated at 26.5% (28.5%).
The prolonged geopolitical uncertainty in the world continues to create
uncertainty about future demand development, both in the passenger and freight
market.
SALES AND EARNINGS FOR JANUARY - JUNE 2025
Consolidated sales decreased by 1.5% to EUR 215.8 M during the period January
1-June 30, 2025 (EUR 219.1 M for January 1-June 30, 2024). Operating income
totalled EUR -11.2 M (EUR -4.3 M). Consolidated income before tax was EUR -17.2
M (EUR -12.4 M).
The deterioration compared with the same period last year is mainly attributable
to the first quarter, when two vessels were out of service for planned dockings.
This negatively affected passenger volumes and therefore revenues. The result
for the first half of the year is weaker than 2024 and also reflects continued
global uncertainty, including demand development and geopolitical concerns.
Passenger-related revenue decreased 2.3% to EUR 188.0 M (EUR 192.3 M), while
cargo revenue increased by 6.1% to EUR 26.7 M (EUR 25.2 M) and other operating
revenue was EUR 1.1 M (EUR 1.6 M). The sales contribution was EUR 169.7 M (EUR
170.4 M).
Operating expenses increased by 3.5% to EUR 165.8 M (EUR 160.2), of which
expenses for emission allowances were EUR 2.7 M (EUR 1.6 M). Expenses for
salaries and employment benefits increased by 3.7%, or EUR 2.2 M, with most of
the increase due to Viking Line staffing Birka Gotland with service personnel.
Other operating expenses increased by 3.4% or EUR 3.4 M. Increased costs for
emission allowances, higher fairway dues, and costs for repairs and maintenance
during dockings account for a large part of the increase. Other operating
expenses also include the repayment of traffic subsidies received during the
pandemic years of EUR 1.1 M.
SALES AND EARNINGS FOR THE SECOND QUARTER OF 2025
Consolidated sales increased by 2.0% to EUR 128.4 M during the period April
1-June 30, 2025 (EUR 125.9 M for April 1-June 30, 2024). Operating income
totalled EUR 6.9 M (EUR 6.2 M). The increase in consolidated sales during the
second quarter was positively affected by Easter falling in April this year,
which contributed to increased travel during the period compared with the
previous year when Easter fell in March.
Passenger-related revenues increased by 2.4% to EUR 115.3 M (EUR 112.6 M), while
cargo revenue was EUR 12.6 M (EUR 12.5 M) and other operating revenue EUR 0.5 M
(EUR 0.8 M). The sales contribution was EUR 100.9 M (EUR 98.7 M).
Operating expenses increased by 1.4% to EUR 86.3 M (EUR 85.1 M). Expenses for
salaries and employment benefits increased by 4.8% or EUR 1.5 M, while other
operating expenses decreased by 0.7% or EUR 0.3 M.
INVESTMENTS AND FINANCING
The Group's investments for the period January 1 to June 30, 2025 amounted to
EUR 12.4 M (EUR 15.4 M). The Group's total investments represented 5.8% of sales
(7.0%). A significant part of the investments relate to the dry-dockings of
Gabriella and Viking XPRS, while a substantial portion has been allocated to the
purchase of emission allowances, which are reported as intangible assets. The
investments during the comparison year mainly consisted of investments related
to the dockings of Viking Cinderella and the jointly owned vessel Birka Gotland
with Gotlandsbolaget.
The Group's long-term interest-bearing liabilities amounted to EUR 112.0 M as of
June 30, 2025 (EUR 133.1 M). It should be noted in this context that the Group's
loan related to the financing of Viking Grace was fully repaid in January 2025.
The debt/equity ratio was 51.9% compared with 48.9% last year.
The Group's cash and cash equivalents at the end of June amounted to EUR 41.5 M
(EUR 58.0 M). Granted unused credit limits in the Group amounted to EUR 22.1 M
(EUR 22.1 M).
Net cash flow from operating activities amounted to EUR 23.7 M (EUR 23.3 M). Net
cash flow from investments was EUR -9.6 M (EUR -13.6 M) and net cash flow from
financing was EUR -28.4 M (EUR -37.0 M).
The Group's loan agreements contain market-based loan covenants. The financial
covenants in the loan agreements consist of minimum liquidity and equity ratio
requirements, as well as a maximum level for the Group's total financial net
debt in relation to EBITDA.
The dividend restriction present in one of the Group's loan agreements will
continue to apply 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, and therefore the dividend restriction is not in force.
ORGANIZATION AND PERSONNEL
The average number of employees, converted to full-time equivalents, in the
Group was 2,375 (2,305), of whom 1,946 (1,848) were in the parent company. Land
-based staff numbered 453 (459) and sea-based staff 1,922 (1,846).
294 people (193) employed in one of Viking Line Abp's subsidiaries were during
the period seconded to the joint venture company Gotland Alandia Cruises AB,
which operates cruises with the vessel Birka Gotland. The staff seconded by
Viking Line have mainly been service personnel.
During the comparison period, Viking Cinderella was reflagged from Swedish to
Finnish flag.
RISK FACTORS
Viking Lines Viking Line's operations are exposed to risks of various kinds,
with varying scope and effect on the business, 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, loss,
and financial risks. These risks remain unchanged since the year-end report was
published. During the current financial period 2025, Viking Line is working to
extend the classification with a category for climate risks. Viking Line
identifies and manages climate risks as an integral part of the company's
overall risk management work. In 2025, the work has been further formalized to
take into account the requirements of the EU's Corporate Sustainability
Reporting Directive (CSRD). The work aims to ensure long-term competitiveness,
meet regulatory requirements, and contribute to the transition to more
sustainable shipping.
Climate risks are assessed based on two main categories:
• Physical risks, such as storms, rising sea levels, and changing weather
conditions that can affect vessels, port infrastructure, personnel, and supply
chains.
• Transition risks, such as technological, political, and market changes that
arise in the transition to a low-carbon economy.
The company's interest-bearing liabilities amounted to EUR 133.8 M as of 30
June, 2025, of which 91.8% have a variable interest rate. The total variable
interest rate consists of the market rate and a company-specific margin.
Fluctuating interest rates affect the company's financing costs and may affect
the cost of financing in the future.
Regarding the post-review of the traffic subsidies received by passenger
shipping companies operating in Finland during the pandemic years 2020-2022,
Viking Line has since the annual financial statement been informed that
repayment may be required. So far, Viking Line has repaid EUR 1.1 M. The extent
and timing of any further repayments have not yet been determined.
OUTLOOK FOR THE FINANCIAL YEAR 2025
Significant uncertainty remains as a result of the economic downturn in our
traffic area in recent years, which has negatively affected customer spending
patterns. The current geopolitical situation and its potential impact,
particularly on energy prices, also contribute to the uncertainty. This makes it
difficult to predict passenger-related market developments. The Board estimates
that pre-tax profits for 2025 will be on par with 2024, which is the same
conclusion as in the previous reporting period.
EVENTS AFTER THE BALANCE SHEET DATE
The Board of Directors, at its regular meeting on August 14, 2025 and in
accordance with the authorization of the Annual General Meeting of April 24,
2025, decided to distribute a second instalment dividend of EUR 0.50 per share,
totalling EUR 8.6 M, with the record date August 18, 2025 and the payment date
August 25, 2025.
The Board is not aware of any other events after the balance sheet date that
could affect the Half-Year Financial Report.
Mariehamn, August 14, 2025
VIKING LINE ABP
The Board of Directors
Financial information
The Board's Half-Year Financial Report 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
Apr 1, Apr 1, Jan 1, Jan 1, Jan 1,
2025- 2024- 2025- 2024- 2024-
EUR M Note Jun Jun Jun Jun Dec
30, 30, 30, 30, 31,
2025 2024 2025 2024 2024
SALES 4 128.4 125.9 215.8 219.1 480.2
Other operating revenue 5 0.2 0.2 0.6 0.6 1.4
Expenses
Goods and services 27.5 27.3 46.0 48.8 102.5
Salary and other employment 6 33.1 31.6 61.8 59.6 120.9
benefit expenses
Depreciation, amortization 7 8.0 7.6 15.7 15.1 29.3
and impairment losses
Other operating expenses 8 53.1 53.5 104.0 100.5 202.2
121.8 119.9 227.6 224.0 454.8
OPERATING INCOME 6.9 6.2 -11.2 -4.3 26.7
Financial income 0.2 0.5 0.5 1.4 2.9
Financial expenses 9 -2.4 -2.8 -4.7 -6.2 -11.2
Share of after-tax income 0.1 -2.0 -1.8 -3.2 1.4
from joint ventures and
companies with a
participating interest
undertaking
accounted for using the
equity method
INCOME BEFORE TAXES 4.8 1.8 -17.2 -12.4 19.8
Income taxes -0.1 -0.1 -0.1 -0.1 -3.8
INCOME FOR THE PERIOD 4.8 1.8 -17.3 -12.5 15.9
Income attributable to:
Parent company shareholders 4.8 1.8 -17.3 -12.5 15.9
Earnings per share, EUR 0.28 0.10 -1.00 -0.72 0.92
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
Apr 1, Apr 1, Jan 1, Jan 1, Jan 1,
2025- 2024- 2025- 2024- 2024-
EUR M Jun Jun Jun Jun Dec
30, 30, 30, 30, 31,
2025 2024 2025 2024 2024
INCOME FOR THE PERIOD 4.8 1.8 -17.3 -12.5 15.9
Items that may be
reclassified to the income
statement
Translation differences -0.7 0.3 0.7 -0.6 -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 0.0 0.0
income
Other comprehensive income -0.7 0.3 0.7 -0.6 -0.4
COMPREHENSIVE INCOME FOR THE 4.1 2.1 -16.6 -13.0 15.6
PERIOD
Comprehensive income
attributable to:
Parent company shareholders 4.1 2.1 -16.6 -13.0 15.6
CONSOLIDATED BALANCE SHEET
EUR M Note Jun Jun Dec
30, 30, 31,
2025 2024 2024
ASSETS
Non-current assets
Intangible assets 11.4 6.8 8.1
Land 0.5 0.5 0.5
Buildings and structures 1.5 1.6 1.6
Renovation costs for rented 1.4 1.0 1.5
properties
Vessels 418.6 433.2 423.5
Machinery and equipment 2.9 2.6 2.6
Right-of-use assets 4.4 3.9 5.2
Financial assets at fair
value through
other comprehensive income 0.0 0.0 0.0
Investments accounted for 12 53.2 50.5 54.6
using the equity method
Receivables - 0.5 -
Total non-current assets 493.9 500.5 497.7
Current assets
Inventories 15.0 15.0 13.4
Income tax assets 0.1 0.1 0.1
Trade and other receivables 13 51.4 55.5 40.4
Cash and cash equivalents 41.5 58.0 55.8
Total current assets 108.1 128.7 109.7
TOTAL ASSETS 602.0 629.2 607.4
EQUITY AND LIABILITIES
Equity
Share capital 1.8 1.8 1.8
Reserves 49.7 49.7 49.6
Translation differences -3.2 -3.5 -3.6
Retained earnings 248.0 244.9 273.6
Equity attributable to parent 296.3 292.9 321.5
company shareholders
Total equity 296.3 292.9 321.5
Non-current liabilities
Deferred tax liabilities 10 49.1 45.2 49.0
Interest-bearing liabilities 112.0 133.1 122.5
Lease liabilities 2.9 2.9 3.3
Investments accounted for 12 3.7 3.5 0.5
using the equity method
Other payables 1.3 1.8 1.5
Total non-current liabilities 169.0 186.5 176.8
Current liabilities
Interest-bearing liabilities 21.8 36.7 29.2
Lease liabilities 2.0 2.7 2.7
Income tax liabilities 0.0 0.0 0.0
Trade and other payables 112.9 110.4 77.1
Total current liabilities 136.6 149.8 109.0
Total liabilities 305.7 336.3 285.9
TOTAL EQUITY AND LIABILITIES 602.0 629.2 607.4
CONSOLIDATED CASH FLOW
STATEMENT
Jan 1, Jan 1, Jan 1,
2025- 2024- 2024-
EUR M Jun Jun Dec
30, 30, 31,
2025 2024 2024
OPERATING ACTIVITIES
Income for the period -17.3 -12.5 15.9
Adjustments
Depreciation, amortization 15.7 15.1 29.3
and impairment losses
Capital gains/losses from 0.0 0.0 0.0
non-current assets
Income from investments in 1.8 3.2 -1.4
associate companies
Other items not included in 0.1 -0.5 -0.1
cash flow
Interest expenses and other 3.8 6.1 11.1
financial expenses
Interest income and other -0.4 -1.0 -2.4
financial income
Dividend income 0.0 - 0.0
Income taxes 0.1 0.1 3.8
Change in working capital
Change in trade and other -11.0 -15.4 -0.3
receivables
Change in inventories -1.6 -2.3 -0.6
Change in trade and other 35.8 35.1 1.7
payables
Interest paid -3.4 -5.3 -9.8
Financial expenses paid -0.2 -0.3 -0.7
Interest received 0.3 0.8 2.4
Financial income received 0.0 0.2 0.1
Taxes paid -0.1 -0.1 0.0
NET CASH FLOW FROM OPERATING 23.7 23.3 49.0
ACTIVITIES
INVESTING ACTIVITIES
Investments in vessels -8.0 -11.2 -14.4
Investments in other -4.4 -2.2 -5.1
intangible assets, property,
plant and equipment
Investments accounted for 0.0 -2.0 -5.0
using the equity method
Divestments of other non 0.1 0.0 0.0
-current assets
Change in non-current - 0.1 0.6
receivables
Dividends received from 2.8 1.7 2.2
associate companies
Dividends received from 0.0 - 0.0
others
NET CASH FLOW FROM INVESTING -9.6 -13.6 -21.7
ACTIVITIES
FINANCING ACTIVITIES
Principal payments -18.3 -18.3 -36.7
Depreciation of lease -1.4 -1.4 -2.8
liabilities
Dividends paid -8.6 -17.3 -17.3
NET CASH FLOW FROM FINANCING -28.4 -37.0 -56.7
ACTIVITIES
CHANGE IN CASH AND CASH -14.3 -27.3 -29.5
EQUIVALENTS
Cash and cash equivalents at 55.8 85.3 85.3
the beginning of the period
CASH AND CASH EQUIVALENTS AT 41.5 58.0 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 -17.3 -17.3
Translation differences 0.0 0.4 0.3 0.7
Remeasurement of
financial assets
recognized at
fair value through 0.0 - 0.0
other comprehensive
income
Comprehensive income - 0.0 0.4 -17.0 -16.6
for the period
Dividend to -8.6 -8.6
shareholders
Transactions with - - - -8.6 -8.6
owners of the parent
company
EQUITY, JUN 30, 2025 1.8 49.7 -3.2 248.0 296.3
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 -12.5 -12.5
Translation differences 0.0 -0.2 -0.3 -0.6
Remeasurement of
financial assets
recognized at
fair value through 0.0 - 0.0
other comprehensive
income
Comprehensive income - 0.0 -0.2 -12.8 -13.0
for the period
Dividend to -17.3 -17.3
shareholders
Transactions with - - - -17.3 -17.3
owners of the parent
company
EQUITY, JUN 30, 2024 1.8 49.7 -3.5 244.9 292.9
CONSOLIDATED INCOME STATEMENT BY QUARTER
2025 2025 2024 2024 2024
EUR M Q2 Q1 Q4 Q3 Q2
SALES 128.4 87.3 109.5 151.5 125.9
Other operating revenue 0.2 0.4 0.6 0.2 0.2
Expenses
Goods and services 27.5 18.5 23.5 30.2 27.3
Salary and other 33.1 28.7 30.6 30.7 31.6
employment benefit
expenses
Depreciation, 8.0 7.7 6.8 7.5 7.6
amortization and
impairment losses
Other operating expenses 53.1 50.8 47.8 53.8 53.5
121.8 105.8 108.6 122.2 119.9
OPERATING INCOME 6.9 -18.0 1.5 29.4 6.2
Financial income 0.2 0.3 1.2 0.3 0.5
Financial expenses -2.4 -2.3 -2.0 -3.0 -2.8
Share of after-tax income 0.1 -1.9 2.9 1.7 -2.0
from joint ventures and
companies with a
participating interest
undertaking
accounted for using the
equity method
INCOME BEFORE TAXES 4.8 -22.0 3.7 28.4 1.8
Income taxes -0.1 -0.1 -0.2 -3.5 -0.1
INCOME FOR THE PERIOD 4.8 -22.1 3.5 24.9 1.8
Income attributable to:
Parent company 4.8 -22.1 3.5 24.9 1.8
shareholders
Earnings per share, EUR 0.28 -1.28 0.20 1.44 0.10
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME BY QUARTER
2025 2025 2024 2024 2024
EUR M Q2 Q1 Q4 Q3 Q2
INCOME FOR THE PERIOD 4.8 -22.1 3.5 24.9 1.8
Items that may be
reclassified to the income
statement
Translation differences -0.7 1.4 0.0 0.1 0.3
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 -0.7 1.4 0.0 0.1 0.3
COMPREHENSIVE INCOME FOR THE 4.1 -20.7 3.6 25.1 2.1
PERIOD
Comprehensive income
attributable to:
Parent company shareholders 4.1 -20.7 3.6 25.1 2.1
KEY METRICS
Jan 1, 2025- Jan 1, 2024- Jan 1, 2024-
Jun 30, 2025 Jun 30, 2024 Dec 31, 2024
Equity per share, EUR 17.15 16.95 18.61
Equity/assets ratio 51.9 % 48.9 % 54.0 %
Investments, EUR M 12.4 15.4 24.6
- as % of sales 5.8 % 7.0 % 5.1 %
Passengers 2,003,861 2,062,271 4,646,676
Cargo units 71,324 66,385 134,219
Average number of 2,375 2,305 2,403
employees, full-time
equivalent
Eget 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.
NOTES TO THE HALF-YEAR FINANCIAL REPORT FOR THE PERIOD JANUARY-JUNE 2025
1. Accounting principles
This half-year report has been prepared in accordance with the bookkeeping and
valuation principles of the IFRS accounting standards and is presented as a
summary of the accounts for the period in accordance with IAS 34.
The half-year report is prepared according to the same accounting principles,
estimates, and valuations as in the most recent annual accounts, unless
otherwise stated below.
The half-year report is unaudited.
Rounding to millions of euros may result in rounding differences of EUR +/- 0.1
M.
2. Estimates and judgements
In preparing the consolidated financial statements in accordance with IFRS
accounting standards, management must make judgments and estimates about the
future that affect the recognized amounts of assets and liabilities, income and
expenses, and other information. The judgments and estimates in the financial
statements are based on management's best knowledge at the time of publication.
Significant uncertainty has existed as a result of the economic downturn in our
entire area of operation, which has negatively affected customer consumption
patterns. The prevailing geopolitical situation and its potential impact, mainly
on energy prices, also contribute to this uncertainty.
It is difficult to assess how this uncertainty will develop and what effects it
may have on Viking Line's future results, financial position, and cash flow.
Actual outcomes may differ from the estimates and judgments made.
The most important area involving estimates is the valuation of the group's
vessels. Market valuations are carried out regularly by external appraisers. The
vessels' residual values and estimated useful lives are reviewed annually and
adjusted if they significantly deviate from previous values.
When valuing the group's lease agreements, assessments are made regarding
whether the group will utilize any option to extend the lease period or to
terminate the agreement. Judgments are also made as to which discount rates
should be used in the present value calculations of the group's lease
liabilities. The size of the group's lease liabilities and right-of-use assets,
as well as amortizations of lease liabilities and depreciations of right-of-use
assets, are affected by the above judgments.
3. Risks and liquidity
The group's cash and cash equivalents amounted to EUR 41.5 M (EUR 58.0 M) at the
end of June. Granted unused credit limits in the group amounted to EUR 22.1 M as
of June 30, 2025 (EUR 22.1 M). Net cash flow from operating activities amounted
to EUR 23.7 M (EUR 23.3 M). Net cash flow from investing was EUR -9.6 M (EUR
-13.6 M) and net cash flow from financing was EUR -28.4 M (EUR -37.0 M).
The group's loan agreements contain market-based loan covenants. The financial
covenants in the loan agreements consist of minimum requirements for liquid
funds and equity ratio, as well as a maximum level for the group's total
financial net debt in relation to EBITDA. These loan covenants have, during the
period, been within the set requirements.
The company's ability to meet the requirements in existing financing agreements
depends on the company's ability to generate cash flow from its operations,
which partly depends on factors outside the company's control. There is a risk
that if the economic downturn in Finland and the geopolitical situation worsen
and energy prices rise significantly, the company will not be able to generate
sufficient cash flow or obtain additional financing to meet its obligations
under the financing agreements.
To somewhat mitigate the risk of rising bunker prices, the group has entered
into fixed price agreements covering parts of MDO consumption for July-December
2025.
Regarding the post-review of the traffic subsidies received by passenger
shipping companies operating in Finland during the pandemic years 2020-2022,
Viking Line has since the annual financial statement been informed that
repayment may be required. So far, Viking Line has repaid EUR 1.1 M. The extent
and timing of any further repayments have not yet been determined.
From January 1, 2024, shipping has been included in the EU Emissions Trading
System (ETS). ETS is one of the instruments the EU uses to achieve its own
climate goals and international commitments under the Paris Agreement. Viking
Line is required, from January 1, 2024, to surrender emission allowances for the
fleet's greenhouse gas emissions to the relevant supervisory authority. The
first surrender must take place no later than September 30, 2025. During the
year, Viking Line has continuously purchased emission allowances to reduce price
risk. Holding emission allowances ties up capital and negatively affects
liquidity.
The FuelEU Maritime Regulation came into force from January 1, 2025. The
regulation's purpose is to increase the share of renewable and low-emission
fuels in the energy mix of the European fleet, with the requirement level rising
every five years. The Finnish government has decided to apply a similar island
exemption for FuelEU as for ETS until December 31, 2029. The impact on liquidity
as a result of FuelEU Maritime is expected to be minimal during the first five
-year period.
Future cash flows related to financial liabilities as of June 30, 2025:
EUR
M
Future cash flows Lease Trade Interest- Total
related to
financial liabilities liabilities payables bearing
(incl. financial
expenses)
liabilities
Jul 1, 2025 - Dec 31, 1.1 30.0 13.5 44.6
2025
Jan 1, 2025 - Jun 30, 1.1 13.3 14.4
2026
Jul 1, 2026 - Jun 30, 1.1 32.8 33.9
2027
Jul 1, 2027 - Jun 30, 0.9 23.0 23.9
2028
Jull 1, 2028 - Jun 30, 0.5 17.3 17.8
2029
Jul 1, 2029 - Jun 30, 0.4 15.1 15.5
2030
Jul 1, 2030 - 0.2 38.4 38.6
Total 5.4 30.0 153.4 188.8
4. Segment information
Consolidated revenue decreased by 1.5% and passenger-related revenue decreased
by 2.3%.
Jan 1, 2025- Jan 1, 2024- Jan 1, 2024-
EUR M Jun 30, 2025 Jun 30, 2024 Dec 31, 2024
Sales
Vessels 213.8 216.1 474.6
Unallocated 2.0 3.1 5.7
Total, operating segments 215.8 219.2 480.3
Eliminations 0.0 -0.1 -0.1
Total sales of the Group 215.8 219.1 480.2
Operating income
Vessels 25.7 30.0 93.4
Unallocated -36.9 -34.3 -66.7
Total operating income of the Group -11.2 -4.3 26.7
SALES
Passenger-related revenue 188.0 192.3 427.7
Cargo revenue 26.7 25.2 49.7
Miscellaneous sales revenue 1.1 1.6 2.7
Total 215.8 219.1 480.2
5. Other operating revenue
Jan 1, 2025- Jan 1, 2024-
EUR M Jun 30, 2025 Jun 30, 2024
Rents received on properties 0.1 0.1
Capital gains 0.0 0.0
Insurance claim payments, accidents 0.2 0.0
Revenue, joint venture 0.3 0.5
Miscellaneous other operating revenue 0.0 0.0
Total 0.6 0.6
6. Compensation to employees
294 (193) individuals employed by a subsidiary of Viking Line Abp have during
the period been leased out to the joint venture company Gotland Alandia Cruises
AB, which operates cruise traffic with the vessel Birka Gotland. The personnel
leased out by us have mainly been catering staff.
During the comparison period, Viking Cinderella was reflagged from the Swedish
to the Finnish flag.
Jan 1, 2025- Jan 1, 2024-
EUR M Jun 30, 2025 Jun 30, 2024
Salaries 65.4 63.4
Expenses of defined-contribution pensions 7.9 7.5
Other payroll overhead 5.9 5.6
79.2 76.5
Government restitution -17.4 -16.9
Total 61.8 59.6
7. Depreciation and amortization
Jan 1, 2025- Jan 1, 2024-
EUR M Jun 30, 2025 Jun 30, 2024
Depreciation and amortization
Intangible assets 0.4 0.3
Building and structures 0.0 0.0
Renovation costs for rented properties 0.2 0.2
Vessels 13.7 12.8
Machinery and equipment 0.4 0.3
Right-of-use assets 1.1 1.5
Total 15.7 15.1
8. Other operating expenses
Jan 1, 2025- Jan 1, 2024-
EUR M Jun 30, 2025 Jun 30, 2024
Sales and marketing expenses 10.8 10.6
Washing and cleaning expenses 10.8 10.6
Repairs and maintenance 8.9 8.4
Public port expenses and vessel charges 19.7 18.1
Fuel expenses 27.6 28.9
Emission allowance costs 2.7 1.6
Miscellaneous expenses 23.5 22.4
Total 104.0 100.5
9. Financial expenses
Jan 1, 2025- Jan 1, 2024-
EUR Jun 30, 2025 Jun 30, 2024
M
Interest expenses on
financial liabilities
recognized at
amortized cost 3.4 5.7
Interest expenses on lease 0.1 0.2
liabilities
Exchange losses 0.9 0.1
Guarantee commissions and 0.3 0.2
other financial expenses
Total financial expenses 4.7 6.2
10. Income taxes
As of June 30, 2025, the Group recognized net deferred tax liabilities of EUR
49.1 M, of which EUR 49.9 M refers to deferred tax liabilities and EUR 0.8 M to
deferred tax assets.
EUR
M
Deferred tax Differences between recognized value of Other Total
liabilities fixed assets and their value for tax temporary
purposes differences
Jan 1, 2025 48.6 0.3 49.0
Translation 0.1 - 0.1
differences
Recognized in - 0.1 0.1
income
statement
Recognized - 0.0 0.0
directly in
equity
Jun 30, 2025 48.7 0.4 49.1
11. Impairment testing
The carrying amounts of intangible and tangible assets are regularly tested for
any external or internal indications of impairment. If such indications are
observed for any asset item, its recoverable amount is determined. One of the
key areas involving judgments 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.
12. Investments accounted for using the equity method
Viking Line Abp's investment in Alandia Försäkring Abp and Alandia Holding Abp
has during the first half of the year generated a profit of EUR 1.6 M. The
dividend of EUR 1.7 M received during the period from Alandia Försäkring Abp
results in accordance with IAS 28.10 in only a positive cash flow for the group.
Viking Line Abp's holding in Rederiaktiebolaget Eckerö has during the reporting
period generated a profit of EUR -0.2 M. Viking Line receives the figures from
Rederiaktiebolaget Eckerö with a one-quarter delay. The dividend of EUR 1.0 M
received during the period from Rederiaktiebolaget Eckerö results in accordance
with IAS 28.10 in only a positive cash flow for the group.
Viking Line's share of Gotland Alandia Cruises AB's result for the period
January 1 - June 30, 2025 resulted in a profit of EUR -3.2 M.
13. Trade and other receivables
Accounts receivable are measured at amortized cost in accordance with IFRS 9.
The carrying amounts for accounts receivable and other receivables are
considered to correspond to fair value based on the short-term nature of the
items.
14. Pledged assets and contingent liabilities
EUR M Jun 30, 2025 Dec 31, 2024
Contingent liabilities 1 156.0 173.9
Assets pledged for own debt 2 232.5 436.5
Other liabilities not shown in the balance sheet 3 2.3 2.6
1 Concerning loans and credit lines for which vessel, property and chattel
mortgages were provided as collateral and other contingent liabilities not
included in the balance sheet covered by site leasehold and chattel mortgages.
2 Concerning vessel mortgages, chattel mortgages and site leasehold mortgages.
3 In addition to a capital injection, Alandia Holding Ab has taken a loan to
finance the purchase of shares in Alandia Försäkring Abp. To the extent Alandia
Holding Ab is in need of cash equivalents to make the payments, Viking Line Abp
has undertaken to make a cash capital contribution to Alandia Holding Ab through
a shareholder agreement.
15. Events after the balance sheet date
At its regular meeting on August 14, 2025, the Board resolved, in accordance
with the Annual General Meeting's authorization of April 24, 2025, to distribute
a second dividend installment of 50 cents per share, totalling EUR 8.6 M, with
the record date August 18, 2025 and payment date August 25, 2025.
The Board is not aware of any events after the reporting date that would affect
the Half-Year Financial Report.
This Half-Year Financial Report has been partially translated by artificial
intelligence.
Jan Hanses
President and CEO
jan.hanses@vikingline.com
+358-(0)18-270 00