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
%
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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
%
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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
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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
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Revenue (Note 3) 282 715 273 615 734 121 711 670
Cost of sales -200 769 -196 839 -578 026 -560 154
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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
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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
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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
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Other comprehensive income/expense
Exchange differences on translating -40 -99 -22 -264
foreign operations
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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)
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited, in thousands of EUR 30.09.2017 31.12.2016
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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
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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
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Non-current assets 1 522 124 1 374 826
TOTAL ASSETS 1 714 505 1 539 009
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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
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Current liabilities 284 377 240 301
Interest-bearing loans and borrowings (Note 9) 560 466 452 793
Derivatives (Note 6) 30 798 32 359
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Non-current liabilities 591 264 485 152
Total liabilities 875 641 725 453
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Share capital (Note 10) 361 736 361 736
Share premium 639 639
Reserves 70 958 68 774
Retained earnings 405 531 382 407
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Equity attributable to equity holders of the Parent 838 864 813 556
Total equity 838 864 813 556
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TOTAL LIABILITIES AND EQUITY 1 714 505 1 539 009
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¹ Payments related to reduction of share capital.
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited, in thousands of EUR 9M 2017 9M 2016
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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
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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
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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
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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
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NET CASH FROM/USED IN FINANCING ACTIVITIES 116 991 -46 520
TOTAL NET CASH FLOW 1 388 6 796
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Cash and cash equivalents at the beginning of period 78 773 81 976
Increase/decrease in cash and cash equivalents 1 388 6 796
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Cash and cash equivalents at the end of period 80 161 88 772
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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 |