AS Tallinna Sadam financial results for 2022 Q3 and 9 months

In the third quarter, Tallinna Sadam Group's revenue, adjusted EBITDA and profit increased year-on-year. Group revenue amounted to EUR 36 million in the third quarter, increasing by 13% compared to the same period last year. The group's adjusted EBITDA in the third quarter was EUR 18 million (+5%) and the profit was EUR 12 million (+11%). In the 9-month summary, the revenue was EUR 93 million (+15%), the adjusted EBITDA was EUR 47 million (+14%) and the profit was EUR 24 million (+26%)...

Tallinn, 10/11/2022 (informazione.it - comunicati stampa - turismo)

In the third quarter, Tallinna Sadam Group's revenue, adjusted EBITDA and profit increased year-on-year. Group revenue amounted to EUR 36 million in the third quarter, increasing by 13% compared to the same period last year. The group's adjusted EBITDA in the third quarter was EUR 18 million (+5%) and the profit was EUR 12 million (+11%). In the 9-month summary, the revenue was EUR 93 million (+15%), the adjusted EBITDA was EUR 47 million (+14%) and the profit was EUR 24 million (+26%).

The Group's results were strongly affected by the lifting of the COVID-19 restrictions and recovery of passenger numbers, as well as the continued decline in cargo volumes. As a result of lifting the restrictions and increased passenger confidence, the number of passengers more than doubled in 9 months, especially on the Helsinki route (+137%), in addition, the number of cruise passengers more than tripled. However, compared to the pre-pandemic level of 2019, we are still 40% below in passenger numbers. The decline in cargo volumes is mainly due to the fourth consecutive quarter of decline in dry bulk and liquid bulk cargo volumes. In shipping, the strong third quarter was supported by additional voyages of ferry Regula based on growing demand; and chartering of Botnica at 100% utility rate.

The revenue and profit growth in both 9 months and the third quarter was driven by the continued strong recovery of the passenger business, which also covered the negative effects of the sanctions on cargo business. The 9-month revenue and adjusted EBITDA of the passenger harbours segment even exceeded the segment's result of full year 2021. At the same time, the pressure of inflation on operating and labor costs strengthened, which reduced the EBITDA margin. The negative impact of the imposed sanctions has turned out to be smaller than expected, in 2022 it is estimated at EUR 2.5 million, as the sanctions have been implemented gradually during the year.

Tallinna Sadam management will present the financial results of the Group at a webinars on 10 November, including webinar in Estonian starting at 10.00 (EET) ( link to EST webinar ) and webinar in English starting at 11.00 (EET) ( link to ENG webinar ).

Key figures (in million EUR):

Major events in Q3:

Revenue
Revenue for the 9 months of 2022 grew by EUR 11.9 million (+14.7%) year on year to EUR 93.5 million. Growth was driven by 25% revenue growth in the second quarter, supported by an increase in the number of passengers as well as higher revenue from the operation of ferry service between Estonia's mainland and two largest islands. All revenue streams increased except cargo charge, which fell slightly. The most increase came from passenger fee (+111%), operating lease (+13%), vessel dues (+6%) and ferry service revenue (+13%).
The nine-month revenue of the Passenger harbours segment grew by 46% year on year, mainly due to growth in passenger fee revenue through a surge in passenger numbers and growth in vessel dues. The segment also increased its lease income by leasing out new premises and electricity sales revenue which was supported by a rise in electricity prices. In the third quarter, revenue grew by 34% year on year to EUR 13.0 million.
The nine-month revenue of the Cargo harbours segment decreased by EUR 1.4 million year on year (–4.6%). The segment's vessel dues revenue dropped by EUR 2.0 million (–13%) due to a decline in dry bulk and liquid bulk cargo. Cargo charges decreased (EUR –143 thousand) as well but the decline in cargo charges was significantly smaller than the decrease in cargo throughput due to changes in the cargo structure. Lease income grew by EUR 281 thousand due to changes in lease rates and electricity sales revenue increased by EUR 659 thousand.
In the third quarter, the revenue of the Cargo harbours segment decreased by EUR 1.5 million year on year.
The nine-month revenue of the Ferry segment grew by EUR 3.2 million (+13.7%) due to growth in both ferry service revenue and lease income. Ferry service revenue grew through a rise in contractual fees due to an increase in the Estonian fuel cost, employment cost and consumer price indices and growth in the number of trips. In the third quarter, the revenue of the Ferry segment grew by EUR 1.6 million year on year (+18.5%).
The revenue of the segment Other grew by 10.2% in the first nine months and by 22.2% in the third quarter. Revenue growth was supported by the revision of the contractual fee due to the indexation of the fee rates.

EBITDA
Adjusted EBITDA for the first nine months grew by EUR 5.6 million (+13.7%) year on year to EUR 46.9 million. The strongest contributors were the Passenger harbours segment (EUR +6.7 million) and the Ferry segment (EUR +1.4 million). In the Cargo harbours segment, adjusted EBITDA decreased by EUR 3.2 million due to smaller cargo throughput. In the third quarter, EBITDA grew by EUR 0.9 million (+5.4%) year on year. The strongest contributor was the Passenger harbours segment (EUR +2.1 million). The adjusted EBITDA margin for nine months decreased from 50.6% to 50.2% and the adjusted EBITDA margin for the third quarter decreased from 52.9% to 49.6% compared with the same period last year.

Profit
Profit for the first nine months amounted to EUR 24.0 million, exceeding the profit for the comparative period by EUR 4.9 million (+25.6%). Third-quarter profit was EUR 11.7 million (EUR +1.1 million). Profit before tax for the first nine months grew by EUR 5.7 million (+25.6%) compared with the same period last year, rising to EUR 28.1 million.

Investments
In the first nine months of 2022, the Group invested EUR 12.4 million, EUR 2.2 million more than a year earlier. Investments were mainly made in reconstructing the outdoor area around Terminal D, upgrading the quay equipment and reconstructing the shoreline reinforcements in Old City Harbour and increasing the capacity of Muuga Harbour to serve ro-ro cargo. Investments of the third quarter totalled EUR 3.5 million (Q3 2021: EUR 2.3 million).

Interim condensed consolidated statement of financial position:

Interim condensed consolidated statement of profit or loss:

Interim condensed consolidated statement of cash flows:

Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which serves annually 10 million passengers and 20 million tons of cargo in average. In addition to passenger and freight services, Tallinna Sadam group also operates in shipping business via its subsidiaries – OÜ TS Laevad provides ferry services between the Estonian mainland and the largest islands, and OÜ TS Shipping charters its multifunctional vessel Botnica for icebreaking and construction services in Estonia and offshore projects abroad. Tallinna Sadam group is also a shareholder of an associate AS Green Marine, which provides waste management services. According to unaudited financial results, the group's sales in 2021 totalled EUR 110 million, adjusted EBITDA EUR 54 million and profit EUR 26 million.

Additional information:

Marju Zirel
Head of Investor Relations
Tel. +372 5342 6591

m.zirel@ts.ee

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