The Q2 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; (https://teams.microsoft.com/l/meetup-
join/19%3ameeting_MTA0ZTQzODItMDAwMC00MzM5LWJjZGEtMjRkZmY1YWI0Zjhm%40thread.v2/0
?context=%7B%22Tid%22%3A%2286359415-f0d5-4ea5-bb32-
42128c4493be%22%2C%22Oid%22%3A%22fbc24b3a-8623-42c6-8311-65b8899e63dd%22%2C%22Is
BroadcastMeeting%22%3Atrue%2C%22role%22%3A%22a%22%7D&btype=a&role=a) we kindly
ask participants to provide their questions latest by 11:00 by email
to: investor@tallink.ee (https://www.globenewswire.com/Tracker?data=sPXC0PO4t9B-
uBXRwzpCc9_urHLPH-
XBcIT5f9VgaHjBgmHJXdMG7Jg3xYPMniStxcjyWGB1jA5Xo_gPeGTNxXf9rfqgQqnrBPw6kdbTEdo=).
Further details are available in a previously published announcement
(https://view.news.eu.nasdaq.com/view?id=b190583ba5ad0aace2de8e5024bd6bfd1&lang=
en).
In the second quarter (1 April - 30 June) of the 2024 financial year, AS Tallink
Grupp and its subsidiaries (hereinafter referred to as "the Group") carried
1 451 768 passengers, which is 5.8% less than in the second quarter of 2023. The
number of cargo units transported increased by 1.7% compared to the same period
a year ago. The number of passenger vehicles was down by 11.4% year-on-year and
amounted to 209 760. The Group's unaudited consolidated revenue amounted to EUR
210.0 million (EUR 229.7 million in Q2 2023), down by 8.5%. Unaudited EBITDA was
EUR 46.6 million (EUR 68.5 million in Q2 2023) and the unaudited net profit for
the period was EUR 6.1 million (EUR 33.4 million in Q2 2023).
The following operational factors impacted the Group's revenue and operating
results in the second 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.
* Easter holidays that impacted the passenger volumes fell into the first
quarter in 2024 while in 2023 the Easter holidays were in the second
quarter.
* 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.
* The Group operated 3 hotels in Tallinn and 1 in Riga.
* The Group's net debt was down to EUR 548.9 million as at the end of the
quarter (EUR 581.0 million as at 31 March 2024) bringing the net debt to
EBITDA ratio to 2.7 as at
30 June 2024.
* Income tax on dividends in the amount of EUR 9.2 million was recorded in the
second quarter of 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 second quarter of 2024, the Group's total revenue decreased by EUR 19.6
million to EUR 210.0 million compared to EUR 229.7 million in the second quarter
of 2023.
Revenue from route operations (the Group's core business) decreased by EUR 6.2
million to EUR 168.8 million compared to the second quarter of 2023. The segment
result from route operations (the Group's core business) amounted to EUR 25.6
million, down by 12.6 million compared to the second quarter of 2023.
The number of passengers carried on the Estonia-Finland route remained unchanged
in year-on-year comparison. The number of transported cargo units increased by
5.4%. Revenue from the Estonia-Finland route increased by EUR 4.6 million to EUR
84.4 million while the segment result remained on the same level as a year ago
amounting to EUR 24.9 million. The segment reflects the operations of two
shuttle vessels and one cruise ferry until 31 May 2024 and two shuttle vessels
from thereon. From 31 May 2024, the cruise ferry Victoria I started operating
the Tallinn-Stockholm route. The shuttle vessel James Joyce (formerly Star)
stopped operating the route in May 2023 due to the charter agreement.
In the second quarter of 2024, the year-on-year decrease in the number of
passengers on Finland-Sweden routes was 21.0%. The number of transported cargo
units increased by 6.4%. The routes' revenue decreased by EUR 11.7 million to
EUR 58.6 million and the segment result decreased by EUR 8.5 million to EUR 1.5
million, year-on-year. The segment reflects the operations of one cruise ferry
on Turku-Stockholm/Turku-Kapellskär routes and two cruise ferries on the
Helsinki-Stockholm route.
On Estonia-Sweden routes the number of carried passengers increased by 2.4%
while the number of transported cargo units decreased by 19.1% compared to the
second quarter of 2023. The revenue of Estonia-Sweden routes increased by EUR
0.9 million to EUR 25.8 million and segment result decreased by EUR 4.2 million
to a loss of EUR 0.9 million, year-on-year. Estonia-Sweden routes reflect the
operation of two cargo vessels and one cruise ferry until 31 May 2024. The
cruise ferry Victoria I was added to the Tallinn-Stockholm route on 31 May
2024, and it will be operating on the route until 31 August 2024.
Revenue from the segment Other decreased by a total of EUR 13.6 million and
amounted to EUR 42.9 million. The decrease was mainly driven by less vessels on
charter. As at the end of the second quarter of 2024, the Group had 3 vessels on
charter, of which one was on long-term and two on short-term charter (Q2
2023: 7 vessels including 3 on long-term and 4 on short-term). The charter
agreement of the ro-pax ferry Superfast IX (formerly Atlantic Vision) ended in
May 2024 after being chartered to Canada since November 2008.
At the end of the second 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 March
2024, the agreement was extended by six months until October 2024 with the
option of extending the agreement at the end of the agreement period.
* 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 second quarter of 2024, the Group's gross profit declined by EUR 19.7
million to EUR 46.8 million compared to EUR 66.5 million in the second quarter
of 2023. EBITDA declined by EUR 21.9 million and amounted to EUR 46.6 million.
Amortisation and depreciation expense decreased by EUR 0.9 million to EUR 24.3
million compared to the second quarter of the financial year 2023.
In the second quarter of 2024, the Group's profitability was impacted by the
income tax expense on dividends in the amount of EUR 9.2 million.
The Group's unaudited net profit for the second quarter of 2024 was EUR 6.1
million or EUR 0.008 per share compared to EUR 33.4 million or EUR 0.045 per
share in the second quarter of 2023.
Investments
The Group's investments in the second quarter of 2024 amounted to EUR 4.6
million. 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 Q2 2024, the Group's net debt amounted to EUR 548.9 million having
decreased by EUR 32.1 million compared to the end of first quarter of 2024. The
net debt to EBITDA ratio was 2.7 at the reporting date (2.6 as at 31 March
2024).
As at 30 June 2024, the Group's cash and cash equivalents amounted to EUR 70.9
million (EUR 48.9 million as at 31 March 2024) and the Group had EUR 75.0
million in unused credit lines (EUR 75.0 million as at 31 March 2024). The total
liquidity buffer (cash, cash equivalents and unused credit facilities) amounted
to EUR 145.8 million (EUR 123.9 million as at 31 March 2024). In the second
quarter of 2024, the Group repaid loans in the total amount of EUR 16.5 million
(EUR 105.3 million in the second quarter of 2023). The current trade and other
payables amounted to EUR 97.1 million (EUR 90.0 million as at 31 March 2024).
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 a dividend 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 (third quarter).
Results of the first 6 months of 2024
In the first 6 months (1 January - 30 June) of the 2024 financial year, the
Group carried 2.6 million passengers which is down by 1.4% compared to the same
period last year. The Group's unaudited revenue for the period decreased by
7.6% and amounted to EUR 370.4 million. Unaudited EBITDA for the first 6 months
was EUR 81.1 million (EUR 95.6 million in January-June 2023) and unaudited net
profit was EUR 8.7 million (EUR 28.0 million in January-June 2023).
The financial result of the first 6 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 second 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.
* Income tax on dividends in the amount of EUR 9.2 million was recorded in the
second quarter of 2024.
* Repayment of long-term loans in the amount of EUR 32.5 million.
Key Figures
Jan-Jun Jan-Jun
For the period Q2 2024 Q2 2023 2024 2023
------------------------------------------------
Revenue (EUR million) 210.0 229.7 370.4 400.9
Gross profit/loss (EUR
million) 46.8 66.5 60.6 91.3
EBITDA¹ (EUR million) 46.6 68.5 81.1 95.6
EBIT¹ (EUR million) 22.3 43.3 32.1 45.1
Net profit/loss for the period
(EUR million) 6.1 33.4 8.7 28.0
Depreciation and amortisation
(EUR million) 24.3 25.3 49.0 50.5
Capital expenditures¹ ²(EUR
million) 4.6 4.7 10.9 16.2
Weighted average number of
ordinary shares outstanding 743 569 064 743 569 064 743 569 064 743 569 064
Earnings/loss per share¹ (EUR) 0.008 0.045 0.012 0.038
Number of passengers 1 451 768 1 541 081 2 554 506 2 590 858
Number of cargo units 86 813 85 359 171 763 172 091
Average number of employees 5 060 4 961 4 974 4 938
As at 30.06.2024 31.03.2024 30.06.2023 31.03.2023
------------------------------------------------
Total assets (EUR million) 1 567.0 1 548.6 1 613.6 1 672.1
Total liabilities (EUR
million) 816.6 970.5 878.4 897.8
Interest-bearing liabilities
(EUR million) 619.8 629.9 722.5 789.5
Net debt¹ (EUR million) 548.9 581.0 664.9 735.4
Net debt to EBITDA¹ 2.7 2.6 3.1 4.2
Total equity (EUR million) 750.4 788.6 735.2 701.6
Equity ratio¹ (%) 48% 51% 46% 42%
Number of ordinary shares
outstanding 743 569 064 743 569 064 743 569 064 743 569 064
Shareholders' equity per share
(EUR) 1.01 1.06 0.99 0.94
Jan-Jun Jan-Jun
Ratios¹ Q2 2024 Q2 2023 2024 2023
------------------------------------------------
Gross margin (%) 22.3% 28.9% 16.4% 22.8%
EBITDA margin (%) 22.2% 29.8% 21.9% 23.8%
EBIT margin (%) 10.6% 18.8% 8.7% 11.3%
Net profit/loss margin (%) 2.9% 14.6% 2.3% 7.0%
ROA (%) 6.4% 7.0% 6.4% 7.0%
ROE (%) 7.7% 11.8% 7.7% 11.8%
ROCE (%) 7.7% 8.9% 7.7% 8.9%
(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
Jan-Jun Jan-Jun
Unaudited, in thousands of EUR Q2 2024 Q2 2023 2024 2023
-------------------------------------------------------------------------------
Revenue 210 047 229 675 370 449 400 920
Cost of sales -163 243 -163 206 -309 846 -309 669
-------------------------------------------------------------------------------
Gross profit/loss 46 804 66 469 60 603 91 251
Sales and marketing expenses -11 894 -11 292 -21 663 -20 382
Administrative expenses -13 494 -12 207 -26 239 -26 319
Other operating income 1 022 308 20 399 593
Other operating expenses -132 -25 -959 -33
-------------------------------------------------------------------------------
Result from operating activities 22 306 43 253 32 141 45 110
Finance income 261 316 489 671
Finance costs -7 374 -10 339 -15 057 -18 296
-------------------------------------------------------------------------------
Profit/loss before income tax 15 193 33 230 17 573 27 485
Income tax -9 087 219 -8 895 540
Net profit/loss for the period 6 106 33 449 8 678 28 025
Net profit/loss for the period
attributable to equity holders of the
Parent 6 106 33 449 8 678 28 025
Other comprehensive income
Items that may be reclassified to profit
or loss
Exchange differences on translating
foreign operations 178 447 369 273
-------------------------------------------------------------------------------
Other comprehensive income for the period 178 447 369 273
Total comprehensive profit/loss for the
period 6 284 33 896 9 047 28 298
Total comprehensive profit/loss for the
period attributable to equity holders of
the Parent 6 284 33 896 9 047 28 298
Basic and diluted profit/loss per share
(in EUR) 0.008 0.045 0.012 0.038
-------------------------------------------------------------------------------
Consolidated statement of financial position
Unaudited, in thousands of EUR 30.06.2024 30.06.2023 31.12.2023
-------------------------------------------------------------------------------
ASSETS
Cash and cash equivalents 70 863 57 645 41 921
Trade and other receivables 33 915 36 069 31 766
Prepayments 17 046 12 474 7 661
Prepaid income tax 193 30 193
Inventories 48 244 42 254 41 411
Short-term intangible assets 3 332 0 0
Current assets 173 593 148 472 122 952
-------------------------------------------------------------------------------
Investments in equity-accounted investees 0 75 0
Other financial assets and prepayments 500 4 238 4 794
Deferred income tax assets 21 840 21 840 21 840
Investment property 300 300 300
Property, plant and equipment 1 345 138 1 408 826 1 377 664
Intangible assets 25 647 29 895 27 671
-------------------------------------------------------------------------------
Non-current assets 1 393 425 1 465 174 1 432 269
TOTAL ASSETS 1 567 018 1 613 646 1 555 221
LIABILITIES AND EQUITY
Interest-bearing loans and borrowings 104 582 169 916 104 097
Trade and other payables 97 108 96 272 85 406
Payables to owners 44 620 6 6
Income tax liability 9 211 35 10
Deferred income 45 912 59 591 34 788
-------------------------------------------------------------------------------
Current liabilities 301 433 325 820 224 307
Interest-bearing loans and borrowings 515 214 552 597 545 160
-------------------------------------------------------------------------------
Non-current liabilities 515 214 552 597 545 160
-------------------------------------------------------------------------------
Total liabilities 816 647 878 417 769 467
Share capital 349 477 349 477 349 477
Share premium 663 663 663
Reserves 66 586 68 401 67 056
Retained earnings 333 645 316 688 368 558
-------------------------------------------------------------------------------
Equity attributable to equity holders of the
Parent 750 371 735 229 785 754
Total equity 750 371 735 229 785 754
-------------------------------------------------------------------------------
TOTAL LIABILITIES AND EQUITY 1 567 018 1 613 646 1 555 221
Consolidated statement of cash flows
Jan-Jun Jan-Jun
Unaudited, in thousands of EUR Q2 2024 Q2 2023 2024 2023
-------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit/loss for the period 6 106 33 449 8 678 28 025
Adjustments 40 547 34 936 54 410 67 438
Changes in:
Receivables and prepayments related to
operating activities 2 299 844 -6 909 -7 762
Inventories -7 903 -1 411 -10 165 -2 289
Liabilities related to operating activities 14 560 16 532 26 185 24 571
-------------------------------------------------------------------------------
Changes in assets and liabilities 8 956 15 965 9 111 14 520
Cash generated from operating activities 55 609 84 350 72 199 109 983
Income tax repaid/paid -18 -44 -25 -91
-------------------------------------------------------------------------------
NET CASH FROM/USED OPERATING ACTIVITIES 55 591 84 306 72 174 109 892
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, equipment and
intangible assets -4 435 -4 656 -10 762 -16 166
Proceeds from disposals of property, plant,
equipment 54 1 24 490 80
Interest received 261 316 489 671
-------------------------------------------------------------------------------
NET CASH USED IN INVESTING ACTIVITIES -4 120 -4 339 14 217 -15 415
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of loans received -16 482 -105 312 -32 452 -124 619
Change in overdraft 26 15 26 0
Payment of lease liabilities -4 467 -4 371 -9 136 -8 806
Interest paid -8 465 -9 109 -15 437 -17 230
Payment of transaction costs related to
loans -92 0 -450 -1 112
-------------------------------------------------------------------------------
NET CASH FROM/USED IN FINANCING ACTIVITIES -29 480 -118 777 -57 449 -151 767
TOTAL NET CASH FLOW 21 991 -38 810 28 942 -57 290
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Cash and cash equivalents at the beginning
of period 48 872 96 455 41 921 114 935
Change in cash and cash equivalents 21 991 -38 810 28 942 -57 290
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Cash and cash equivalents at the end of
period 70 863 57 645 70 863 57 645
Anneli Simm
Investor Relations Manager
AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail anneli.simm@tallink.ee
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