AS Tallink Grupp Unaudited Consolidated Interim Report Q3 2024
The Q3 2024 results of AS Tallink Grupp will
be introduced at an Investor Webinar held today at 12:00 (EEST). To
participate, please join via the
following link; we kindly ask
participants to provide their questions latest by 11:00 by email
to: investor@tallink.ee. Further details are
available in a previously
published announcement.
In the third quarter (1 July – 30 September) of
the 2024 financial year, AS Tallink Grupp and its subsidiaries
(hereinafter referred to as “the Group”) carried 1 715 496
passengers, which is 3.4% less than in the third quarter of 2023.
The number of cargo units transported decreased by 11.7% compared
to the same period a year ago. The number of passenger vehicles was
down by 8.3% year-on-year and amounted to 250 810. The Group’s
unaudited consolidated revenue amounted to EUR 231.9 million (EUR
240.7 million in Q3 2023), down by 3.7%. Unaudited EBITDA was EUR
68.4 million (EUR 82.1 million in Q3 2023) and the unaudited net
profit for the period was EUR 36.8 million (EUR 48.7 million in Q3
2023).
The following operational factors impacted the
Group’s revenue and operating results in the third quarter of
2024:
- Demand continued to be affected by low consumer and business
confidence levels, the economic challenges in the Group’s core
markets as well as mounting global geopolitical tensions.
- As at the end of the quarter, the Group operated 14 vessels
including 2 shuttle vessels, 2 cargo vessels, 5 operating cruise
ferries as well as 3 vessels that were chartered out and 2 vessels
that were in lay-up.
- During the quarter the Tallinn-Stockholm route was operated
with two cruise ferries. The cruise ferry Victoria I returned to
Tallinn-Helsinki route on 31 August 2024.
- The Group operated 3 hotels in Tallinn and 1 in Riga.
- The Group’s net debt was EUR 555.7 million as at the end of the
quarter (EUR 548.9 million as at 30 June 2024) bringing the net
debt to EBITDA ratio to 2.98 as at 30 September 2024.
- Payment of dividends in the amount of EUR 44.6 million and
related income tax in the amount of EUR 4.9 million impacted the
cash balance.
- As a result of the voluntary takeover bid, the shareholding of
AS Infortar, the core shareholder of the Group, increased from
46.8% to 68.5% as at 9 August 2024.
- The Group continues to focus on cost efficiencies from the
previously implemented measures and maintaining profitable
operations on its core routes.
- The Group regularly monitors the developments on its core
routes including the capacity of each route and continues to look
for new chartering options for vessels not used on the main routes
and to work on extending the existing chartering agreements.
Sales and Segments
In the third quarter of 2024, the Group’s total
revenue decreased by EUR 8.8 million to EUR 231.9 million compared
to EUR 240.7 million in the third quarter of 2023.
Revenue from route operations (the Group’s core
business) decreased by EUR 2.0 million to EUR 193.6 million
compared to the third quarter of 2023. The segment result from
route operations (the Group’s core business) amounted to EUR 48.1
million, down by EUR 6.9 million compared to the third quarter of
2023.
The number of passengers carried on the
Estonia-Finland route dropped by 1.7% in year-on-year comparison.
The number of transported cargo units decreased by 13.0%. Revenue
from the Estonia-Finland route increased by EUR 0.4 million
compared to the same period a year ago and amounted to EUR 86.8
million. The segment result decreased by EUR 0.9 million amounting
to EUR 31.4 million. The segment reflects the operations of two
shuttle vessels until 31 August 2024 and two shuttle vessels and
one cruise ferry from thereon. From 31 May 2024 until 31 August
2024, the cruise ferry Victoria I operated the Tallinn-Stockholm
route.
In the third quarter of 2024, the year-on-year
decrease in the number of passengers on Finland-Sweden routes was
18.1%. The number of transported cargo units increased by 9.9%. The
routes’ revenue decreased by EUR 11.1 million to EUR 72.6
million and the segment result decreased by EUR 5.6 million to EUR
13.2 million, year-on-year. The segment reflects the operations of
one cruise ferry on the Turku-Stockholm route and two cruise
ferries on the Helsinki-Stockholm route.
On Estonia-Sweden routes the number of carried
passengers increased by 34.2% while the number of transported cargo
units decreased by 21.6% compared to the third quarter of 2023.
Year-on-year, the revenue of Estonia-Sweden routes increased by EUR
8.6 million to EUR 34.2 million. The segment result declined by EUR
0.4 million compared to the third quarter of 2023 and amounted to
EUR 3.5 million. Estonia-Sweden routes reflect the operation of two
cargo vessels and two cruise ferries until 31 August 2024. The
cruise ferry Victoria I returned to the Tallinn-Helsinki route on
31 August 2024 and the Tallinn-Stockholm route was from thereon
operated by the cruise ferry Baltic Queen.
Revenue from the segment Other decreased by a
total of EUR 7.2 million and amounted to EUR 40.2 million. The
decrease was mainly driven by less vessels on charter. As at the
end of the third quarter of 2024, the Group had 3 vessels on
charter, of which one was on long-term and two on short-term
charter (Q3 2023: 5 vessels including 3 on long-term and 2 on
short-term).
At the end of the third quarter of 2024, the following vessels
were chartered out:
- The shuttle vessel James Joyce (formerly Star) was chartered
out from 5 May 2023 for 20 months with an option to extend the
charter by 2+2 years and an option to purchase the vessel.
- The cruise ferry Galaxy I was chartered out in September 2022.
In October 2024, the agreement was extended by 12 months until
October 2025 with the option of extending the agreement at the end
of the agreement period by 6+6 months.
- The cruise ferry Silja Europa was chartered out in August 2022.
In October 2023, the charter agreement was extended until the end
of 2024.
Earnings
In the third quarter of 2024, the Group’s gross
profit declined by EUR 10.6 million to EUR 67.0 million compared to
EUR 77.7 million in the third quarter of 2023. EBITDA declined by
EUR 13.7 million and amounted to EUR 68.4 million.
Amortisation and depreciation expense decreased
by EUR 0.9 million to EUR 24.4 million compared to the third
quarter of the financial year 2023.
The Group’s unaudited net profit for the third
quarter of 2024 was EUR 36.8 million or EUR 0.050 per share
compared to EUR 48.7 million or EUR 0.065 per share in the third
quarter of 2023.
Investments
The Group’s investments in the third quarter of
2024 amounted to EUR 5.6 million (EUR 6.1 million in Q3 2023). Main
investments in vessels included maintenance and repair works i.e.,
technical works as well as interior upgrades. The Group also
continued to invest in the improvement of its IT systems.
Financial Position
At the end of Q3 2024, the Group’s net debt
amounted to EUR 555.7 million, up by EUR 6.8 million compared to
the end of second quarter of 2024. The net debt to EBITDA ratio was
2.98 at the reporting date (2.7 as at 30 June 2024).
As at 30 September 2024, the Group’s cash and
cash equivalents amounted to EUR 32.6 million (EUR 70.9 million as
at 30 June 2024) and the Group had EUR 75.0 million in unused
credit lines (EUR 75.0 million as at 30 June 2024). The total
liquidity buffer (cash, cash equivalents and unused credit
facilities) amounted to EUR 107.6 million (EUR 145.8 million as at
30 June 2024). The decline in cash and cash equivalents as well as
in the liquidity buffer was driven by the payment of dividends and
related income tax in the third quarter of 2024. In the third
quarter of 2024, the Group repaid loans in the total amount of EUR
27.0 million (EUR 30.9 million in the third quarter of 2023).
Dividends
In 2018, the Group adopted a dividend policy
subject to which dividends of a minimum amount of EUR 0.05 per
share would be paid if the economic performance enables it.
The Annual General Meeting of Shareholders held
on 7 May 2024 adopted a resolution to pay dividends of EUR 0.06 per
share for the financial year of 2023. The dividends in the amount
of EUR 44.6 million were paid out on 3 July 2024.
Results of the first 9 months of 2024
In the first 9 months (1 January – 30 September)
of the 2024 financial year, the Group carried 4.3 million
passengers which is down by 2.2% compared to the same period last
year. The Group’s unaudited revenue for the period decreased by
6.1% and amounted to EUR 602.3 million. Unaudited EBITDA for the
first 9 months was EUR 149.5 million (EUR 177.7 million in
January-September 2023) and unaudited net profit was EUR 45.5
million (EUR 76.7 million in January-September 2023).
The financial result of the first 9 months of
2024 was impacted by the following factors:
- Low consumer and business confidence in the home markets as
well as mounting geopolitical tensions.
- The number of vessels on charter dropped from 5 in the
beginning of the year to 3 as at the end of the third quarter.
- Sale of the cruise vessel Isabelle in the first quarter of
2024.
- Two vessels in lay-up including the cruise vessel Romantika the
charter agreement of which was prematurely terminated in September
2023 and MV Superfast IX (formerly Atlantic Vision) the charter
agreement of which ended in May 2024.
- Payment of dividends in the amount of EUR 44.6 million in the
third quarter of 2024.
- Income tax expense on dividends in the amount of EUR 9.2
million was recorded in the second quarter of 2024. In the third
quarter of 2024, income tax on dividends was paid in the amount of
EUR 4.9 million (EUR 4.3 million of the dividend tax expense was
offset by prepaid income tax).
- Repayment of long-term loans in the amount of EUR 59.5
million.
Key Figures
For
the period |
Q3 2024 |
Q3 2023 |
Jan-Sep
2024 |
Jan-Sep
2023 |
Revenue (EUR million) |
231.9 |
240.7 |
602.3 |
641.6 |
Gross profit/loss (EUR
million) |
67.0 |
77.7 |
127.6 |
168.9 |
EBITDA¹ (EUR million) |
68.4 |
82.1 |
149.5 |
177.7 |
EBIT¹ (EUR million) |
44.0 |
56.8 |
76.1 |
101.9 |
Net profit/loss for the period
(EUR million) |
36.8 |
48.7 |
45.5 |
76.7 |
|
|
|
|
|
Depreciation and amortisation
(EUR million) |
24.4 |
25.2 |
73.3 |
75.7 |
Capital expenditures¹ ²(EUR
million) |
5.6 |
6.1 |
16.5 |
22.3 |
Weighted average number of
ordinary shares outstanding |
743 569 064 |
743 569 064 |
743 569 064 |
743 569 064 |
Earnings/loss per share¹
(EUR) |
0.050 |
0.065 |
0.061 |
0.103 |
|
|
|
|
|
Number of passengers |
1 715 496 |
1 775 821 |
4 270 002 |
4 366 679 |
Number of cargo units |
66 865 |
75 701 |
238 628 |
247 792 |
Average number of
employees |
5 063 |
4 756 |
5 004 |
4 878 |
|
|
|
|
|
As at |
30.09.2024 |
30.06.2024 |
30.09.2023 |
30.06.2023 |
Total assets (EUR
million) |
1 498.9 |
1 567.0 |
1 597.4 |
1 613.6 |
Total liabilities (EUR
million) |
711.5 |
816.6 |
813.7 |
878.4 |
Interest-bearing liabilities
(EUR million) |
588.3 |
619.8 |
684.8 |
722.5 |
Net debt¹ (EUR million) |
555.7 |
548.9 |
620.4 |
664.9 |
Net debt to EBITDA¹ |
3.0 |
2.7 |
2.7 |
3.1 |
Total equity (EUR
million) |
787.4 |
750.4 |
783.7 |
735.2 |
Equity ratio¹ (%) |
53% |
48% |
49% |
46% |
|
|
|
|
|
Number of ordinary shares
outstanding |
743 569 064 |
743 569 064 |
743 569 064 |
743 569 064 |
Shareholders’ equity per share
(EUR) |
1.06 |
1.01 |
1.05 |
0.99 |
|
|
|
|
|
Ratios¹ |
Q3 2024 |
Q3 2023 |
Jan-Sep
2024 |
Jan-Sep
2023 |
Gross margin (%) |
28.9% |
32.3% |
21.2% |
26.3% |
EBITDA margin (%) |
29.5% |
34.1% |
24.8% |
27.7% |
EBIT margin (%) |
19.0% |
23.6% |
12.6% |
15.9% |
Net profit/loss margin
(%) |
15.9% |
20.2% |
7.6% |
12.0% |
|
|
|
|
|
ROA (%) |
5.6% |
7.7% |
5.6% |
7.7% |
ROE (%) |
6.1% |
12.9% |
6.1% |
12.9% |
ROCE (%) |
6.7% |
9.6% |
6.7% |
9.6% |
1 Alternative performance measures based on ESMA
guidelines are disclosed in the Alternative Performance Measures
section of this Interim Report.
2 Does not include additions to right-of-use
assets.
EBITDA: result from operating activities before
net financial items, share of profit of equity-accounted investees,
taxes, depreciation and amortization
EBIT: result from operating activities
Earnings/loss per share: net profit or loss/
weighted average number of shares outstanding
Equity ratio: total equity / total assets
Shareholder’s equity per share: shareholder’s
equity / number of shares outstanding
Gross profit/loss margin: gross profit / net
sales
EBITDA margin: EBITDA / net sales
EBIT margin: EBIT / net sales
Net profit/loss margin: net profit or loss / net
sales
Capital expenditure: additions to property, plant
and equipment – additions to right-of-use assets + additions to
intangible assets
ROA: earnings before net financial items, taxes
12-months trailing / average total assets
ROE: net profit 12-months trailing / average
shareholders’ equity
ROCE: earnings before net financial items, taxes
12-months trailing / (total assets – current liabilities (average
for the period))
Net debt: interest-bearing liabilities less cash
and cash equivalents
Net debt to EBITDA: net debt / EBITDA 12-months
trailing
Consolidated statement of profit or loss
and other comprehensive income
Unaudited, in thousands of EUR |
Q3 2024 |
Q3 2023 |
Jan-Sep
2024 |
Jan-Sep
2023 |
Revenue |
231 868 |
240 668 |
602 317 |
641 588 |
Cost of sales |
-164 849 |
-163 013 |
-474 695 |
-472 682 |
Gross profit/loss |
67 019 |
77 655 |
127 622 |
168 906 |
|
|
|
|
|
Sales and marketing expenses |
-10 684 |
-10 399 |
-32 347 |
-30 781 |
Administrative expenses |
-12 770 |
-11 175 |
-39 009 |
-37 494 |
Other operating income |
469 |
789 |
20 868 |
1 382 |
Other operating expenses |
-42 |
-35 |
-1 001 |
-68 |
Result from operating
activities |
43 992 |
56 835 |
76 133 |
101 945 |
|
|
|
|
|
Finance income |
144 |
133 |
633 |
804 |
Finance costs |
-7 319 |
-8 507 |
-22 376 |
-26 803 |
Profit/loss before income
tax |
36 817 |
48 461 |
54 390 |
75 946 |
|
|
|
|
|
Income tax |
-1 |
222 |
-8 896 |
762 |
|
|
|
|
|
Net profit/loss for the
period |
36 816 |
48 683 |
45 494 |
76 708 |
Net
profit/loss for the period attributable to equity holders of the
Parent |
36 816 |
48 683 |
45 494 |
76 708 |
|
|
|
|
|
Other comprehensive income |
|
|
|
|
Items that may be reclassified to profit or loss |
|
|
|
|
Exchange differences on translating foreign operations |
-11 |
-244 |
358 |
29 |
Other comprehensive income for
the period |
-11 |
-244 |
358 |
29 |
|
|
|
|
|
Total comprehensive
profit/loss for the period |
36 805 |
48 439 |
45 852 |
76 737 |
Total comprehensive profit/loss for the period attributable to
equity holders of the Parent |
36 805 |
48 439 |
45 852 |
76 737 |
|
|
|
|
|
EPS (in EUR) |
0.050 |
0.065 |
0.061 |
0.103 |
Diluted
EPD (in EUR) |
0.049 |
0.065 |
0.061 |
0.103 |
Consolidated statement of financial position
Unaudited, in thousands of EUR |
30.09.2024 |
30.09.2023 |
31.12.2023 |
ASSETS |
|
|
|
Cash and cash equivalents |
32 609 |
64 433 |
41 921 |
Trade and other receivables |
30 290 |
34 577 |
31 766 |
Prepayments |
11 018 |
11 485 |
7 661 |
Prepaid income tax |
13 |
1 |
193 |
Inventories |
45 180 |
39 758 |
41 411 |
Short-term intangible assets |
5 166 |
0 |
0 |
Current assets |
124 276 |
150 254 |
122 952 |
|
|
|
|
Investments in equity-accounted investees |
0 |
75 |
0 |
Other financial assets and prepayments |
515 |
4 510 |
4 794 |
Deferred income tax assets |
21 840 |
21 840 |
21 840 |
Investment property |
300 |
300 |
300 |
Property, plant and equipment |
1 327 413 |
1 391 682 |
1 377 664 |
Intangible assets |
24 556 |
28 734 |
27 671 |
Non-current assets |
1 374 624 |
1 447 141 |
1 432 269 |
TOTAL ASSETS |
1 498 900 |
1 597 395 |
1 555 221 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Interest-bearing loans and borrowings |
104 508 |
126 148 |
104 097 |
Trade and other payables |
88 940 |
83 593 |
85 406 |
Payables to owners |
0 |
0 |
0 |
Income tax liability |
6 |
6 |
6 |
Deferred income |
9 |
35 |
10 |
Current liabilities |
34 261 |
45 237 |
34 788 |
|
227 724 |
255 019 |
224 307 |
Interest-bearing loans and borrowings |
|
|
|
Non-current liabilities |
483 812 |
558 659 |
545 160 |
Total liabilities |
711 536 |
813 678 |
769 467 |
|
|
|
|
Share capital |
349 477 |
349 477 |
349 477 |
Share premium |
663 |
663 |
663 |
Reserves |
66 251 |
67 694 |
67 056 |
Retained earnings |
370 973 |
365 883 |
368 558 |
Equity attributable to equity holders of the Parent |
787 364 |
783 717 |
785 754 |
Total equity |
787 364 |
783 717 |
785 754 |
TOTAL LIABILITIES AND EQUITY |
1 498 900 |
1 597 395 |
1 555 221 |
Consolidated statement of cash flows
Unaudited, in thousands of EUR |
Q3 2024 |
Q3 2023 |
Jan-Sept
2024 |
Jan-Sept
2023 |
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
Net profit/loss for the period |
36 816 |
48 683 |
45 494 |
76 708 |
Adjustments |
31 858 |
33 283 |
86 268 |
100 721 |
Changes in: |
|
|
|
|
Receivables and prepayments related to operating activities |
5 341 |
2 480 |
-1 568 |
-5 282 |
Inventories |
1 230 |
2 496 |
-8 935 |
207 |
Liabilities related to operating activities |
-20 215 |
-27 274 |
5 970 |
-2 703 |
Changes in assets and liabilities |
-13 644 |
-22 298 |
-4 533 |
-7 778 |
Cash generated from operating activities |
55 030 |
59 668 |
127 229 |
169 651 |
Income tax repaid/paid |
178 |
-20 |
153 |
-111 |
NET CASH FROM/USED OPERATING ACTIVITIES |
55 208 |
59 648 |
127 382 |
169 540 |
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
Purchase of property, plant, equipment and intangible assets |
-5 575 |
-6 083 |
-16 337 |
-22 249 |
Proceeds from disposals of property, plant, equipment |
26 |
164 |
24 516 |
244 |
Interest received |
144 |
133 |
633 |
804 |
NET CASH USED IN INVESTING ACTIVITIES |
-5 405 |
-5 786 |
8 812 |
-21 201 |
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
Repayment of loans received |
-27 040 |
-30 858 |
-59 492 |
-155 477 |
Change in overdraft |
-26 |
-15 |
0 |
-15 |
Payment of lease liabilities |
-4 751 |
-8 219 |
-13 887 |
-17 025 |
Interest paid |
-6 722 |
-7 982 |
-22 159 |
-25 212 |
Payment of transaction costs related to loans |
0 |
0 |
-450 |
-1 112 |
Dividends paid |
-44 614 |
0 |
-44 614 |
0 |
Income tax on dividends paid |
-4 904 |
0 |
-4 904 |
0 |
NET CASH FROM/USED IN FINANCING ACTIVITIES |
-88 057 |
-47 074 |
-145 506 |
-198 841 |
|
|
|
|
|
TOTAL NET CASH FLOW |
-38 254 |
6 788 |
-9 312 |
-50 502 |
|
|
|
|
|
Cash and cash equivalents at the beginning of period |
70 863 |
57 645 |
41 921 |
114 935 |
Change in cash and cash equivalents |
-38 254 |
6 788 |
-9 312 |
-50 502 |
Cash and cash equivalents at the end of period |
32 609 |
64 433 |
32 609 |
64 433 |
Anneli Simm
Investor Relations Manager
AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail anneli.simm@tallink.ee
- Tallink Grupp 2024 Q3 ENG
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