Tallinn, 2017-08-10 08:50 CEST (GLOBE NEWSWIRE) --
AS Tallink Grupp Unaudited Consolidated Interim Report Q2 2017
In the second quarter (1 April – 30 June) of the 2017 financial year Tallink
Grupp AS and its subsidiaries (the Group) carried 2.6 million passengers which
is 6.8% more compared to the second quarter last year. The Group’s unaudited
revenue for the second quarter increased by 6.0% to the total of EUR 259.9
million. Unaudited EBITDA for the second quarter increased by 35.1% to the
total of EUR 48.9 million (EUR 36.2 million, Q2 2016) and unaudited net profit
increased by 83.2% to the total of EUR 17.9 million (EUR 9.8 million, Q2 2016).
In the second quarter, the Group’s revenue and operating result was impacted by
following operational factors:
- After the rerouting of ships in December 2016, the carriage capacity
increased on number of operated routes;
- In the second quarter of 2017, one cruise ferry operated the Tallinn
– Helsinki route cruise service compared to two cruise ferries in the same
period last year;
- In financial year 2017 the Easter holidays seasonal traffic fell
into the beginning of the second quarter, last year the holidays were in the
first quarter.
Sales and segments
The Estonia-Finland routes second quarter revenue increased by 3.0% compared to
same period last year, the increase is driven mainly by growth in the passenger
number and cargo volume that was supported by added capacity. In the end of
January, the new LNG fast ferry Megastar started operating the Tallink Shuttle
service on the Tallinn-Helsinki route next to fast ferry Star and replaced fast
ferry Superstar. The new ship accommodates approximately 40% more passengers
and the car deck capacity is almost doubled compared to the replaced ship. The
feedback on the new ship has been very positive from all customer groups and
partners.
The Estonia-Finland segment result for the second quarter increased by 24.7%
compared to the same period last year and amounted to EUR 19.8 million, the
growth is derived mostly from the new Shuttle vessel Megastar. The segment
result was supported by growth of passenger number, higher average revenue per
passenger, increase of number of transported cargo units and lower operating
expenses. Starting from February 2017 there is no charter hire cost from fast
ferry Superstar.
The Finland-Sweden routes second quarter revenue increased by 4.8% compared to
same period last year, the growth was supported by 7.1% higher passenger number
on the routes. The number of cargo units transported increased by 2.4%. The
segment second quarter result increased by EUR 6,4 million, compared to same
period last year and amounted to EUR 9.4 million.
The Estonia-Sweden routes second quarter revenue increased by 5.6% compared to
same period last year, the growth was supported by 6,8% higher passenger number
on the routes. The number of cargo units transported increased by 2.8%. The
segment result decreased by 12.5% in the second quarter and amounted to EUR 3.7
million compared to same period last year.
The Latvia-Sweden route second quarter revenue increased by 55.7% compared to
same period last year and the number of cargo units transported increased by
59.3%. The second quarter segment result decreased to EUR -0.6 million,
starting from December 2016 two ships are operating on the route compared to
one ship in the second quarter last year.
Earnings
In the second quarter of the 2017 financial year the Group’s gross profit
increased by EUR 11.0 million compared to the same period last year and
amounted to EUR 59.3 million. The second quarter EBITDA increased by EUR 12.7
million and was EUR 48.9 million. The second quarter growth was driven by
higher passenger number from holiday season effects and added capacity, more
optimal operating cost on Tallinn – Helsinki route with three vessels but the
result was also impacted by higher fuel cost compared to same period last year.
The net finance costs decreased by EUR 1.4 million compared to the second
quarter last year, there are EUR 1.7 million lower interest cost and total EUR
0.3 million lower losses from exchange rate differences and cross currency and
interest derivatives revaluations compared to same period last year.
The income tax on dividends in amount of EUR 4.1 million was recorded in the
second quarter costs, compared to EUR 0.3 million in same period last year.
The Groups pretax profit for the second quarter more than doubled compared to
the same period last year and amounted to EUR 22.0 million. The unaudited net
profit for the second quarter of the 2017 financial year was EUR 17.9 million
or EUR 0.027 per share compared to the net profit of EUR 9.8 million or EUR
0.015 per share in the same period last year.
Results of the first 6 months of 2017
In the first 6 months (1 January – 30 June) of the 2017 financial year the
Group carried 4.5 million passengers which is 3.4% more compared to the same
period last year. The Group’s unaudited revenue for the period increased by
3.0% to the total of EUR 451.4 million. Unaudited EBITDA for the first 6 months
was EUR 54.1 million (EUR 52.4 million, 6M 2016) and unaudited net loss was EUR
2.4 million (EUR 2.2 million, 6M 2016 net loss).
The financial result of the first 6 months of 2017 was impacted by the
scheduled maintenances of five cruise ferries in the first quarter of 2017 and
carriage capacity increase on number of routes from the rerouting of vessels in
December 2016. In the first half of the year the competition on the maritime
traffic in between Estonia and Finland has increased which has put pressure on
ticket prices.
Financial position
In the second quarter the Group’s net debt decreased by EUR 37.2 million to a
total of EUR 653.7 million. The net debt to EBITDA ratio was 4.3 at the end of
the second quarter.
The total liquidity, cash and unused credit facilities, at the end of the
second quarter was EUR 92.2 million (EUR 123.6 million, 30 June 2016) providing
a strong financial position for sustainable operations. The Group had EUR 82.0
million (EUR 92.3 million, 30 June 2016) in cash and equivalents and the total
of unused credit lines were at EUR 10.2 million (EUR 31.3 million, 30 June
2016).
KEY FIGURES OF THE Q2 2017
For the period Q2 2017 Q2 2016 Change
%
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Revenue (million euros) 259.9 245.2 6.0%
Gross profit (million euros) 59.3 48.3 22.8%
Net profit for the period (million euros) 17.9 9.8 83.2%
EBITDA (million euros) 48.9 36.2 35.1%
Depreciation and amortisation (million euros) 21.5 19.4 11.1%
Investments (million euros) 5.3 18.7 -71.7%
Weighted average number of ordinary shares 669 882 040 669 882 040 0.0%
outstanding1
Earnings per share 0.027 0.015 83.2%
Number of passengers 2 587 033 2 423 057 6.8%
Number of cargo units 91 819 84 392 8.8%
Average number of employees 7 582 7 281 4.1%
As at 30.06.17 31.03.17 Change
%
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Total assets (million euros) 1 739.0 1 730.2 0.5%
Total liabilities (million euros) 948.0 937.1 1.2%
Interest-bearing liabilities (million euros) 735.7 763.2 -3.6%
Net debt (million euros) 653.7 690.9 -5.4%
Net debt to EBITDA 4.33 4.99 -13.2%
Total equity (million euros) 791.1 793.1 -0.3%
Equity ratio (%) 45.5% 45.8%
Number of ordinary shares outstanding1 669 882 040 669 882 040 0.0%
Shareholders’ equity per share 1.18 1.18 -0.3%
Ratios Q2 2017 Q2 2016
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Gross margin (%) 22.8% 19.7%
EBITDA margin (%) 18.8% 14.7%
Net profit margin (%) 6.9% 4.0%
EBITDA: Earnings before net financial items, share of profit of equity
accounted investees, taxes, depreciation and amortisation
Earnings per share: net profit / 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 margin: gross profit / net sales
EBITDA margin: EBITDA / net sales
Net profit margin: net profit / net sales
Net debt: Interest-bearing liabilities less cash and cash equivalents
Net debt to EBITDA: Net debt / 12-months trailing EBITDA
1 Share numbers exclude own shares.
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Unaudited, in thousands of EUR Q2 2017 Q2 2016 6M 2017 6M 2016
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Revenue (Note 3) 259 858 245 234 451 406 438 055
Cost of sales -200 579 -196 972 -377 257 -363 315
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Gross profit 59 279 48 262 74 149 74 740
Sales and marketing expenses -19 334 -18 303 -37 114 -36 595
Administrative expenses -12 844 -14 259 -25 454 -26 277
Other operating income 213 1 073 336 1 573
Other operating expenses -9 -12 -144 -28
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Result from operating activities 27 305 16 761 11 773 13 413
Finance income (Note 4) 5 417 1 766 7 908 4 362
Finance costs (Note 4) -10 696 -8 413 -17 969 -19 686
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Profit/-loss before income tax 22 026 10 114 1 712 -1 911
Income tax -4 112 -333 -4 126 -335
Net profit/-loss for the period 17 914 9 781 -2 414 -2 246
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Other comprehensive income/-expense
Exchange differences on translating 629 -107 18 -165
foreign operations
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Other comprehensive income for the 629 -107 18 -165
period
Total comprehensive income/-expense for 18 543 9 674 -2 396 -2 411
the period
Basic and diluted earnings per share (in 0,027 0,015 -0,004 -0,003
EUR per share, note 5)
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited, in thousands of EUR 30.06.2017 31.12.2016
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ASSETS
Cash and cash equivalents 81 959 78 773
Trade and other receivables 49 412 38 674
Prepayments 14 274 7 926
Income tax prepayments 0 91
Inventories 51 623 38 719
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Current assets 197 268 164 183
Investments in equity-accounted investees 363 363
Other financial assets 354 348
Deferred income tax assets 18 795 18 791
Investment property 300 300
Property, plant and equipment (Note 7) 1 471 712 1 304 897
Intangible assets (Note 8) 50 236 50 127
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Non-current assets 1 541 760 1 374 826
TOTAL ASSETS 1 739 028 1 539 009
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LIABILITIES AND EQUITY
Interest-bearing loans and borrowings (Note 9) 152 803 106 112
Trade and other payables 109 410 103 280
Dividends payable to shareholders 20 100 4
Income tax liability 4 087 10
Deferred income 44 935 30 895
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Current liabilities 331 335 240 301
Interest-bearing loans and borrowings (Note 9) 582 880 452 793
Derivatives (Note 6) 33 749 32 359
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Non-current liabilities 616 629 485 152
Total liabilities 947 964 725 453
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Share capital (Note 10) 361 736 361 736
Share premium 639 639
Reserves 70 998 68 774
Retained earnings 357 691 382 407
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Equity attributable to equity holders of the Parent 791 064 813 556
Equity 791 064 813 556
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TOTAL LIABILITIES AND EQUITY 1 739 028 1 539 009
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CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited, in thousands of EUR 6M 2017 6M 2016
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CASH FLOWS FROM OPERATING ACTIVITIES
Net profit/-loss for the period -2 414 -2 246
Adjustments 56 637 54 141
Changes in:
Receivables and prepayments related to operating activities -18 542 -13 999
Inventories -12 904 -10 133
Liabilities related to operating activities 18 511 26 228
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Changes in assets and liabilities -12 935 2 096
Cash generated from operating activities 41 288 53 991
Income tax paid 40 -2 138
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NET CASH FROM OPERATING ACTIVITIES 41 328 51 853
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, equipment and intangible assets -209 411 -31 325
(Notes 7, 8, 9)
Proceeds from disposals of property, plant, equipment 189 121
Interest received 1 35
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NET CASH USED IN INVESTING ACTIVITIES -209 221 -31 169
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans 184 000 0
Repayment of loans (Note 9) -26 050 -35 458
Change in overdraft (Note 9) 24 682 40 246
Payments for settlement of derivatives -1 819 -2 180
Payment of finance lease liabilities (Note 9) -52 -49
Interest paid -9 466 -12 944
Payment of transaction costs related to loans -216 0
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NET CASH USED IN FINANCING ACTIVITIES 171 079 -10 385
TOTAL NET CASH FLOW 3 186 10 299
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Cash and cash equivalents at the beginning of period 78 773 81 976
Increase / -decrease in cash and cash equivalents 3 186 10 299
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Cash and cash equivalents at the end of period 81 959 92 275
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Veiko Haavapuu
Finance Director
AS Tallink Grupp
Sadama 5/7
10111 Tallinn, Estonia
Tel. +372 640 9914
E-mail veiko.haavapuu@tallink.ee |