Trey Bowers

Trey Bowers followed up on Marina Bay Sands' (MBS) Q4 exit rate, asking if applying seasonal growth levels would lead to significant top and bottom-line numbers, and if there are any factors to consider against this for the next 12 months.

Answer

Rob Goldstein, Chairman and CEO, stated that MBS defies typical seasonality, being driven more by the property's strength, customer base, and events rather than seasonal patterns. He advised against modeling based on seasonality.

Trey Bowers asked about Viking's impressive committed capacity growth for ocean, questioning if it targets untapped itineraries or aims to meet existing demand in current regions, and how the ocean business will develop. He also inquired about future itinerary mix (more Caribbean/Asia) and the potential for inorganic growth in cruise ships.

Answer

Tor Hagen, Chairman and CEO, stated that ocean capacity growth primarily meets existing demand in current regions, as many itineraries are sold out. He emphasized customer trust for new destinations and the benefits of Viking's standardized vessel design for consistency and cost efficiency. Leah Talactac, President and CFO, noted Viking's guests travel year-round and that Viking focuses on destination-rich areas, not the Caribbean, seeing white space for growth in Europe and exotic locations. Tor added that acquiring cruise ships is unlikely ('never say never, but not far from it'), but securing docking spaces could be an area for inorganic moves.

Trey Bowers asked whether Viking's impressive committed ocean capacity growth would lead to significantly different itinerary mixes or primarily serve unmet demand in current regions. He followed up by asking if future itineraries would remain predominantly Europe/Northern Europe, or if more Caribbean/Asia or entirely new, unexplored destinations would be introduced, given the high repeat customer base. Finally, he inquired if the consistent product approach precludes non-organic cruise ship acquisitions, or if suitable luxury brands could be integrated.

Answer

Tor Hagen, Chairman and CEO, stated that new ocean capacity is primarily to meet existing unmet demand for 'more of the same' to more customers, as many itineraries are already sold out. Leah Talactac, President and CFO, added that Viking's demographic travels year-round, sees significant white space in the luxury ocean market (24% market share vs. 50%+ in river), and focuses on destination-focused itineraries in Europe, the Mediterranean, Nordic countries, and other exotic locations where larger ships cannot go, rather than the Caribbean. Tor emphasized customer trust for new destinations and the benefits of consistent, standard vessel design for cost efficiency and shipyard contracts. Regarding non-organic cruise ship acquisitions, Tor said 'never say never, but not far from it,' suggesting it would take a very special situation, possibly related to strategic assets like docking spaces, rather than confusing the brand with different cruise products.