AS Tallink Grupp Unaudited Consolidated Interim Report Q2 2023

The Q2 2023 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; we kindly ask participants to provide their questions latest by 11:00 am by email to: investor@tallink.ee . Further details are available in a previously published announcement . In the second quarter (1 April – 30 June) of the 2023 financial year, AS Tallink Grupp and its subsidiaries (the Group) carried...

Tallinn, 27/07/2023 (informazione.it - comunicati stampa - turismo)

The Q2 2023 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;  we kindly ask participants to provide their questions latest by 11:00 am by email to:  investor@tallink.ee . Further details are available in a previously published  announcement .

In the second quarter (1 April – 30 June) of the 2023 financial year, AS Tallink Grupp and its subsidiaries (the Group) carried 1 541 081 passengers, which is 0.7% less than in the second quarter of 2022. The number of cargo units transported decreased by 22.0% compared to the same period a year ago. The Group's unaudited consolidated revenue amounted to EUR 229.7 million (EUR 206.0 million in Q2 2022), up by 11.5%. Unaudited EBITDA was EUR 68.5 million (EUR 28.7 million in Q2 2022) and the unaudited net profit for the period was EUR 33.4 million (net loss of EUR 0.7 million in Q2 2022).

The following operational factors impacted the Group's revenue and operating results in the second quarter of 2023:

Sales and Segments
In the second quarter of 2023, the Group's total revenue increased by EUR 23.6 million to EUR 229.7 million compared to EUR 206.0 million in the second quarter of 2022. 

Revenue from route operations (core business) amounted to EUR 175.0 million, which is on the same level as in the second quarter of 2022.

The number of passengers carried on the Estonia-Finland route increased by 5.0% year-on-year. The number of transported cargo units decreased by 21.4%. The decline is mostly driven by less vessels available and less trips made compared to the same period a year ago. Revenue from the Estonia-Finland route increased by EUR 1.9 million to EUR 79.8 million and the segment result improved by EUR 12.4 million to EUR 24.9 million. The segment reflects the operations of three shuttle vessels until May 2023, and two shuttle vessels from thereon. On 5 May 2023, the shuttle vessel Star was chartered out and is currently operating under the name of Oscar Wilde between Ireland and the United Kingdom. The cruise ferry Silja Europa stopped operating on the Estonia-Finland route in August 2022 due to a charter agreement. The cargo vessel Sea Wind was sold at the end of April 2022.

In the second quarter of 2023, the year-on-year decrease in the number of passengers on Finland-Sweden routes was 16.4%. The number of transported cargo units decreased by 43.2%. The decline was mostly driven by less vessels available and less trips made compared to the same period a year ago. The cruise ferry Galaxy I stopped operating on the Turku-Stockholm route from September 2022 due to a charter agreement. The routes' revenue decreased by EUR 6.3 million to EUR 70.3 million while the segment result improved by EUR 11.3 million to EUR 10.0 million, year-on-year. The segment reflects the operations of one cruise ferry on Turku-Stockholm/Kapellskär routes and two cruise ferries on the Helsinki-Stockholm route.

On Estonia-Sweden routes the number of carried passengers increased by 24.9% and the number of transported cargo units by 6.1% compared to Q2 2022. The revenue of Estonia-Sweden routes increased by EUR 5.1 million to EUR 24.8 million and segment result improved by EUR 7.7 million to EUR 3.3 million, year-on-year. Estonia-Sweden routes reflect the operation of two cargo vessels and one cruise ferry in the second quarter of 2023.

Revenue from the segment Other increased by a total of EUR 23.6 million and amounted to EUR 56.5 million. The increase was mainly driven by chartering out of vessels and accommodation sales. As at the end of second quarter 2023, the Group had 7 vessels on charter including 3 on long-term and 4 on short-term. The vessel Atlantic Vision was chartered to Canada in November 2008. The current agreement has been signed until May 2024 with an extension option for another 12 months. The agreement for chartering the cruise ferry Romantika was signed in March 2022 for three years and with the option to extend the agreement (3+1+1). Recent addition to long-term charters includes the shuttle vessel Star (from 5 May 2023) and the cruise ferry Isabelle (from 1 July 2023, on short-term charter until then) both with a purchase option. Short-term charter agreements have been signed for the cruise ferry Victoria I, Galaxy I and Silja Europa.

Earnings
In the second quarter of 2023, the Group's gross profit improved by EUR 41.0 million to EUR 66.5 million compared to EUR 25.5 million in the second quarter of 2022. EBITDA improved by EUR 39.8 million and amounted to EUR 68.5 million.

Amortisation and depreciation expense increased by EUR 1.5 million to EUR 25.3 million compared to the second quarter of the financial year 2022.

As a result of increased interest rates and increased financing obligations related to the shuttle-vessel Mystar, net finance costs increased by EUR 4.2 million year-on-year to EUR 10.0 million in the second quarter of 2023.

The Group's unaudited net profit for Q2 2023 was EUR 33.4 million or EUR 0.045 per share compared to a net loss of EUR 0.7 million or net loss of EUR 0.001 per share in Q2 2022.

Investments
The Group's investments in the second quarter of 2023 amounted to EUR 4.7 million.

Majority of the investments were made in the maintenance and repair works of vessels, IT developments as well as in the re-opening of hotel in Riga in April and in the opening of a new Burger King restaurant in Riga in June.

Financial Position
At the end of Q2 2023, the Group's net debt amounted to EUR 664.9 million having decreased by EUR 70.5 million compared to the end of first quarter of 2023. The net debt to EBITDA ratio was 3.1 at the reporting date (4.2 as at 31 March 2023).

As at 30 June 2023, the Group's cash and cash equivalents amounted to EUR 57.6 million (EUR 96.5 million as at 31 March 2023) and the Group had EUR 135.0 million in unused credit lines (EUR 135.0 million as at 31 March 2023). The total liquidity buffer (cash, cash equivalents and unused credit facilities) amounted to EUR 192.6 million (EUR 231.5 million as at 31 March 2023). In the second quarter of 2023, the Group repaid loans in the total amount of EUR 105.3 million compared to loan repayments of EUR 46.0 million in the second quarter of 2022. The current trade and other payables amounted to EUR 96.3 million (EUR 87.7 million as at 31 March 2023).

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.

Due to continued global uncertainties the Annual General Meeting of Shareholders held on 13 June 2023 decided not to pay dividends for the financial year 2022.

Results of the first 6 months of 2023
In the first 6 months (1 January – 30 June) of the 2023 financial year, the Group carried 2.6 million passengers which is 14.0% more compared to the same period last year. The Group's unaudited revenue for the period increased by 28.4% and amounted to EUR 400.9 million. Unaudited EBITDA for the first 6 months was EUR 95.6 million (EUR 17.7 million in January-June 2022) and unaudited net profit was EUR 28.0 million (net loss of EUR 40.7 million in January-June 2022).

The financial result of the first 6 months of 2023 was impacted by the following factors:

Key Figures

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

 

Consolidated   statement of financial   position

Consolidated   statement of cash   flows

 

Anneli Simm
Investor Relations Manager

AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail anneli.simm@tallink.ee

 

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