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Avaldamise aeg 09 nov 2017 09:50:00 +0200
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Tallink Grupp 2017-Q3 ENG.pdf
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Pealkiri AS Tallink Grupp Unaudited Consolidated Interim Report Q3 2017
Tekst
Tallinn, 2017-11-09 08:50 CET (GLOBE NEWSWIRE) --
AS Tallink Grupp Unaudited Consolidated Interim Report Q3 2017

In the third quarter (1 July – 30 September) of 2017, Tallink Grupp AS and its
subsidiaries (the Group) carried 2.9 million passengers, 2% more than in the
third quarter of 2016. The Group’s unaudited third-quarter revenue grew by 3.3%
to EUR 282.7 million (EUR 273.6 million, Q3 2016). Unaudited EBITDA for the
third quarter improved by 12.3% to EUR 75.4 million (EUR 67.1 million, Q3 2016)
and unaudited net profit increased by 11.7% to EUR 47.8 million (EUR 42.8
million, Q3 2016). 

In the third quarter, the Group’s revenue and operating result were impacted by
following operational factors: 

-          after the rerouting of ships in December 2016, carriage capacity
increased on a number of operated routes; 
-          in the third quarter of 2017, during June and August, one cruise
ferry operated the Tallinn – Helsinki route in contrast to two cruise ferries
in last year; 
-          increased competition on Tallinn – Helsinki route.

Sales and segments

In the third-quarter, the revenues from all core operational segments increased
compared to third quarter last year. The shops and restaurant revenue increased
by EUR 3 million and ticket revenue by EUR 1.2 million, the growth was
supported by the 2% increase of passenger number. The third-quarter cargo
revenue increased by EUR 3.5 million compared to same period last year, the
growth was supported by the increase of number of transported cargo units in
all geographical segments. 

The third-quarter revenue of the Estonia – Finland routes decreased by 6%
compared to same period last year. The decrease was driven by decline in
passenger numbers that was attributable to smaller total carriage capacity on
the routes and increased competition from added capacity by competitors during
the summer high season. Despite lower revenue, the Estonia – Finland routes
segment result improved as more optimal operating costs resulting from three
vessels on the Tallinn – Helsinki route. On the Tallinn – Helsinki route the
new Shuttle ferry Megastar started operating in January 2017, next to Shuttle
ferry Star. On the Tallinn – Helsinki route cruise service only one cruise
ferry is operating in 2017, compared to two cruise ferries in the period of
March to August in 2016. 

The third-quarter revenue of the Finland-Sweden routes increased by 4% compared
to same period last year. Growth was supported by a 1.8% higher passenger
number and by a 13.7% increase of number of transported cargo units. The
segment’s third quarter result increased by EUR 1.9 million, compared to same
period last year, amounting to EUR 17.9 million. 

The Estonia-Sweden routes third-quarter revenue grew by 8.6% compared to same
period last year. Growth was supported by an 8.1% higher passenger number. The
number of transported cargo units increased by 2.9%. The segment’s result
increased by 4.9% to EUR 7.8 million compared to same period last year. 

The Latvia-Sweden route third-quarter revenue increased by 66.4% compared to
same period last year and the number of transported cargo units increased by
120%. The segment’s third-quarter result increased by 4.2% to EUR 4.4 million.
Since December 2016, two ships have been operating on the route compared to one
ship in the third quarter last year. 

Earnings

In the third quarter of 2017, the Group’s gross profit grew by EUR 5.2 million
compared to the same period last year, amounting to EUR 81.9 million.
Third-quarter EBITDA increased by EUR 8.3 million to EUR 75.4 million. Third
quarter growth was driven by a higher number of passengers and transported
cargo units, attributable to the higher capacity, and more optimal operating
costs resulting from three vessels on the Tallinn – Helsinki route. On the
other hand, the result was also impacted by a year-on-year rise in fuel costs. 

Net finance costs decreased by EUR 0.3 million compared to the third quarter
last year mainly from lower interest expenses. The total exchange rate
differences and the revaluation of cross currency and interest rate derivatives
were on the same level. 

The Group’s unaudited net profit for the third quarter of 2017 was EUR 47.8
million or EUR 0.071 per share compared to a net profit of EUR 42.8 million or
EUR 0.064 per share in the same period last year. 

Results of the first 9 months of 2017

In the first 9 months (1 January – 30 September) of 2017, the Group carried 7.4
million passengers which is 2.9% more compared to the same period last year.
The Group’s unaudited revenue for the period increased by 3.2% to EUR 734.1
million. Unaudited EBITDA increased almost by EUR 10 million and amounted to
EUR 129.5 million (EUR 119.6 million, 9M 2016), unaudited net profit for the
period was EUR 45.4 million (EUR 40.6 million, 9M 2016 net profit). 

The financial result for the first 9 months 2017 was influenced by the
scheduled maintenance of five cruise ferries in the first quarter of 2017 and a
rise in carriage capacity on several routes after the rerouting of vessels in
December 2016. In the first nine months the competition in the maritime traffic
between Estonia and Finland has increased, which has put pressure on ticket
prices. 

Financial position

In the third quarter, the Group’s net debt decreased by EUR 18.6 million to EUR
635.2 million. The net debt to EBITDA ratio was 4.0 at the reporting date. 

At the end of the third quarter, total liquidity (cash, cash equivalents and
unused credit facilities) amounted to EUR 87.5 million (EUR 116.3 million, 30
September 2016) providing a strong financial position for sustainable
operations. The Group had EUR 80.2 million (EUR 88.8 million, 30 September
2016) in cash and cash equivalents and EUR 7.3 million (EUR 27.5 million, 30
September 2016) in unused credit lines. 



KEY FIGURES

For the period                                     Q3 2017      Q3 2016   Change
                                                                               %
--------------------------------------------------------------------------------
Revenue (million euros)                              282.7        273.6     3.3%
Gross profit (million euros)                          81.9         76.8     6.7%
Net profit for the period (million euros)             47.8         42.8    11.7%
EBITDA (million euros)                                75.4         67.1    12.3%
                                                                                
Depreciation and amortisation (million euros)         22.2         19.3    15.3%
Capital expenditures (million euros)                   2.4         15.1   -84.1%
Weighted average number of ordinary shares     669 882 040  669 882 040     0.0%
 outstanding                                                                    
Earnings per share                                   0.071        0.064    11.7%
                                                                                
Number of passengers                             2 912 759    2 855 112     2.0%
Number of cargo units                               91 335       81 170    12.5%
Average number of employees                          7 566        7 366     2.7%
                                                                                
As at                                             30.09.17     30.06.17   Change
                                                                               %
--------------------------------------------------------------------------------
Total assets (million euros)                       1 714.5      1 739.0    -1.4%
Total liabilities (million euros)                    875.6        948.0    -7.6%
Interest-bearing liabilities (million euros)         715.3        735.7    -2.8%
Net debt (million euros)                             635.2        653.7    -2.8%
Net debt to EBITDA                                     4.0          4.3    -7.9%
Total equity (million euros)                         838.9        791.1     6.0%
Equity ratio (%)                                     48.9%        45.5%         
                                                                                
Number of ordinary shares outstanding          669 882 040  669 882 040     0.0%
Equity per share                                      1.25         1.18     6.0%
                                                                                
Ratios                                             Q3 2017      Q3 2016         
--------------------------------------------------------------------------------
Gross margin (%)                                     29.0%        28.1%         
EBITDA margin (%)                                    26.7%        24.5%         
Net profit margin (%)                                16.9%        15.7%         

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
Equity per share: shareholder’s equity / number of shares outstanding
Gross margin: gross profit / revenue
EBITDA margin: EBITDA / revenue
Net profit margin: net profit / revenue
Net debt: interest-bearing liabilities less cash and cash equivalentsNet debt
to EBITDA: net debt / 12-months trailing EBITDA 



CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Unaudited, in thousands of EUR             Q3 2017   Q3 2016   9M 2017   9M 2016
--------------------------------------------------------------------------------
Revenue (Note 3)                           282 715   273 615   734 121   711 670
Cost of sales                             -200 769  -196 839  -578 026  -560 154
--------------------------------------------------------------------------------
Gross profit                                81 946    76 776   156 095   151 516
                                                                                
Sales and marketing expenses               -17 068   -16 571   -54 182   -53 166
Administrative expenses                    -11 780   -12 548   -37 234   -38 825
Other operating income                         108       180       444     1 753
Other operating expenses                       -38        22      -182        -6
--------------------------------------------------------------------------------
Result from operating activities            53 168    47 859    64 941    61 272
                                                                                
Finance income (Note 4)                       -102     4 398     7 806     8 760
Finance costs (Note 4)                      -5 214    -9 999   -23 183   -29 685
--------------------------------------------------------------------------------
Profit/loss before income tax               47 852    42 258    49 564    40 347
                                                                                
Income tax                                     -12       580    -4 138       245
                                                                                
Net profit/loss for the period              47 840    42 838    45 426    40 592
================================================================================
                                                                                
Other comprehensive income/expense                                              
Exchange differences on translating            -40       -99       -22      -264
 foreign operations                                                             
--------------------------------------------------------------------------------
Other comprehensive income/expense for         -40       -99       -22      -264
 the period                                                                     
                                                                                
Total comprehensive income/expense for      47 800    42 739    45 404    40 328
 the period                                                                     
                                                                                
Basic and diluted earnings per share (in     0.071     0.064     0.068     0.061
 EUR per share, note 5)                                                         
================================================================================



CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Unaudited, in thousands of EUR                       30.09.2017  31.12.2016
---------------------------------------------------------------------------
ASSETS                                                                     
Cash and cash equivalents                                80 161      78 773
Trade and other receivables                              51 951      38 674
Prepayments                                              13 921       7 926
Prepaid income tax                                           34          91
Inventories                                              46 314      38 719
---------------------------------------------------------------------------
Current assets                                          192 381     164 183
                                                                           
Investments in equity-accounted investees                   363         363
Other financial assets                                      353         348
Deferred income tax assets                               18 797      18 791
Investment property                                         300         300
Property, plant and equipment (Note 7)                1 452 732   1 304 897
Intangible assets (Note 8)                               49 579      50 127
---------------------------------------------------------------------------
Non-current assets                                    1 522 124   1 374 826
TOTAL ASSETS                                          1 714 505   1 539 009
===========================================================================
                                                                           
LIABILITIES AND EQUITY                                                     
Interest-bearing loans and borrowings (Note 9)          154 855     106 112
Trade and other payables                                 96 505     103 280
Payables to owners ¹                                          3           4
Income tax liability                                          4          10
Deferred income                                          33 010      30 895
---------------------------------------------------------------------------
Current liabilities                                     284 377     240 301
                                                                           
Interest-bearing loans and borrowings (Note 9)          560 466     452 793
Derivatives (Note 6)                                     30 798      32 359
---------------------------------------------------------------------------
Non-current liabilities                                 591 264     485 152
Total liabilities                                       875 641     725 453
===========================================================================
                                                                           
Share capital (Note 10)                                 361 736     361 736
Share premium                                               639         639
Reserves                                                 70 958      68 774
Retained earnings                                       405 531     382 407
---------------------------------------------------------------------------
Equity attributable to equity holders of the Parent     838 864     813 556
Total equity                                            838 864     813 556
===========================================================================
TOTAL LIABILITIES AND EQUITY                          1 714 505   1 539 009
===========================================================================

¹ Payments related to reduction of share capital.



CONSOLIDATED STATEMENT OF CASH FLOWS

Unaudited, in thousands of EUR                                  9M 2017  9M 2016
--------------------------------------------------------------------------------
                                                                                
CASH FLOWS FROM OPERATING ACTIVITIES                                            
Net profit/loss for the period                                   45 426   40 592
Adjustments                                                      84 328   79 014
Changes in:                                                                     
Receivables and prepayments related to operating activities     -20 727   -9 914
Inventories                                                      -7 595   -8 427
Liabilities related to operating activities                      -5 238     -326
--------------------------------------------------------------------------------
Changes in assets and liabilities                               -33 560  -18 667
Cash generated from operating activities                         96 194  100 939
Income tax paid received/ paid                                        9   -1 621
--------------------------------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES                               96 203   99 318
                                                                                
CASH FLOWS FROM INVESTING ACTIVITIES                                            
Purchase of property, plant, equipment and intangible assets   -212 031  -46 197
 (Notes 7, 8, 9)                                                                
Proceeds from disposals of property, plant, equipment               224      144
Interest received                                                     1       51
--------------------------------------------------------------------------------
NET CASH USED IN INVESTING ACTIVITIES                          -211 806  -46 002
                                                                                
CASH FLOWS FROM FINANCING ACTIVITIES                                            
Proceeds from loans received (Note 9)                           184 000        0
Repayment of loans received (Note 9)                            -51 241  -55 039
Change in overdraft (Note 9)                                     27 580   44 096
Payments for settlement of derivatives                           -2 698   -3 341
Payment of finance lease liabilities (Note 9)                       -78      -74
Interest paid                                                   -16 159  -18 434
Payment of transaction costs related to loans                      -216        0
Dividends paid (Note 11)                                        -20 096  -13 398
Reduction of share capital                                           -1        0
Income tax on dividends paid                                     -4 100     -330
--------------------------------------------------------------------------------
NET CASH FROM/USED IN FINANCING ACTIVITIES                      116 991  -46 520
                                                                                
TOTAL NET CASH FLOW                                               1 388    6 796
================================================================================
                                                                                
Cash and cash equivalents at the beginning of period             78 773   81 976
Increase/decrease in cash and cash equivalents                    1 388    6 796
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of period                   80 161   88 772
================================================================================




         Veiko Haavapuu
         Finance Director
         
         AS Tallink Grupp
         Sadama 5/7
         10111 Tallinn, Estonia
         Tel. +372 640 9914
         E-mail veiko.haavapuu@tallink.ee