AS Tallink Grupp Unaudited Consolidated Interim Report for the Q1 2025

The results of AS Tallink Grupp for the Q1 2025 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 first quarter (1 January – 31 March) of 2025, AS Tallink Grupp and its subsidiaries (hereinafter referred to as “the Group”) carried 970 359 passengers, which is 12.0% less than in the first quarter of 2024. The number of cargo units transported decreased by 31.9% year-on-year amounting to 57 830. The number of passenger vehicles was down by 10.9% compared to the same period a year ago and amounted to 135 829.

The Group's unaudited consolidated revenue amounted to EUR 137.3 million (EUR 160.4 million in Q1 2024), down by 14.4% year-on-year. Unaudited negative EBITDA was EUR 3.8 million (positive EBITDA of EUR 34.5 million in Q1 2024) and the unaudited net loss for the period was EUR 33.2 million (net profit of EUR 2.6 million in Q1 2024).

The following operational factors impacted the Group's revenue and operating results in the first quarter of 2025:

• Demand continued to be affected by low consumer and business confidence levels, the economic challenges in the Group's core markets and global geopolitical tensions.
• As at the end of the quarter, the Group operated 14 vessels including 2 shuttle vessels, 6 passenger vessels, 2 vessels that were chartered out and 4 vessels that were in lay-up.
• The Group closed its stand-alone restaurant Flavore in Tallinn and a Burger King restaurant in Vienibase shopping centre in Riga in March 2025.
• During the quarter total investments amounted to EUR 13.3 million majority of which were made to upgrading the cruise ferries Baltic Princess and Silja Serenade. The planned maintenance works totalling 68 days in the first quarter of 2025 affected the passenger and cargo levels in Finland-Sweden routes.
• The Group operated 3 hotels in Tallinn and 1 in Riga.
• The Group's net debt was EUR 569.1 million as at the end of the first quarter of 2025 (EUR 537.7 million as at 31 December 2024) bringing the net debt to EBITDA ratio to 4.2 as at 31 March 2025.
• In the first quarter of 2025, total loan repayment and related interest expense amounted to
  EUR 20.8 million.
• The Group continues to focus on cost efficiencies from the previously implemented measures and maintaining profitable operations on its core routes.
• The Group regularly monitors the developments on its core routes including the capacity of each route and continues to look for new chartering options for vessels not used on the main routes and to work on extending the existing chartering agreements.
  
  

Sales and Results by Segments

In the first quarter of 2025, the Group's total revenue decreased by EUR 23.1 million to EUR 137.3 million compared to EUR 160.4 million year ago.

Revenue from route operations (the Group's core business) decreased by EUR 16.7 million to EUR 110.5 million compared to the first quarter of 2024. The segment result from route operations (the Group's core business) amounted to a loss of EUR 13.4 million compared to a loss of EUR 2.1 million in the first quarter of 2024.

The number of passengers carried on the Estonia-Finland route decreased by 10.9% in year-on-year comparison. The number of transported cargo units decreased by 34.7%. Revenue from the Estonia-Finland route decreased by EUR 8.4 million to EUR 57.0 million and the segment result decreased by EUR 6.7 million to EUR 2.9 million, year-on-year. The segment reflects the operations of two shuttle vessels, MyStar and Megastar, and the cruise ferry Victoria I. During the quarter, the shuttle vessel Megastar did not operate on the Tallinn-Helsinki route for 3 days due to scheduled maintenance.

In the first quarter of 2025, the year-on-year decrease in the number of passengers on Finland-Sweden routes was 17.0%. The number of transported cargo units decreased by 23.5%. The routes' revenue decreased by EUR 6.7 million to EUR 37.6 million and the segment loss increased by EUR 2.5 million to a loss of EUR 10.8 million, year-on-year. The segment reflects the operations of one cruise ferry on the Turku-Stockholm and two cruise ferries on the Helsinki-Stockholm route. During the quarter, the cruise ferry Silja Serenade did not operate on the Helsinki-Stockholm route for 30 days and the cruise ferry Baltic Princess on the Turku-Stockholm route for 21 days due to scheduled maintenance.

On Estonia-Sweden routes the number of carried passengers decreased by 6.1% while the number of transported cargo units decreased by 22.9% compared to the same period a year ago. Year-on-year, the revenue of Estonia-Sweden routes decreased by EUR 1.6 million to EUR 16.0 million. The segment loss increased by EUR 2.1 million to a loss of EUR 5.5 million. The Estonia-Sweden segment reflects the operations of the Tallinn-Stockholm and the Paldiski-Kapellskär routes. The Tallinn-Stockholm route was operated by the cruise ferry Baltic Queen. The Paldiski-Kapellskär route was operated by cargo vessel Regal Star until 9 February 2025 after which the route was operated by passenger vessel Star I (formerly Star, now James Joyce). The cargo vessel Sailor stopped operating the Paldiski-Kapellskär route on 15 January 2025. The cargo vessels Sailor and Regal Star remain in lay-up.

Revenue from the segment Other decreased by a total of EUR 6.6 million and amounted to EUR 27.5 million. The segment loss amounted to EUR 1.7 million decreasing by EUR 7.8 million compared to the same period a year ago. The decrease was mainly driven by fewer vessels on charter. As at the end of the first quarter of 2025, the Group had 2 vessels on charter (Q1 2024: 4 vessels on charter). In January 2025, the charter agreement of the passenger vessel James Joyce (formerly Star) ended as the charterer decided not to use the extension option the agreement. The vessel operated Paldiski-Kapellskär route from February until the agreement was signed between the subsidiary of AS Tallink Group, Tallink Hansaway Limited, and Irish Continental Group plc for the sale of the vessel in April 2025.

At the end of the first quarter of 2025, the following vessels were chartered out:

• The cruise ferry Galaxy I was chartered out in September 2022. In October 2024, the agreement was extended by 12 months until October 2025 with the option of extending the agreement at the end of the agreement period by 6+6 months.
• The cruise ferry Silja Europa was chartered out in August 2022. The new charter agreement from December 2024 is effective from 1 January 2025 for six months. The agreement includes the option of extending the agreement at the end of the agreement period by another 7+6+6 moths.

Earnings

In the first quarter of 2025, the Group generated gross loss of EUR 4.7 million compared to gross profit of EUR 13.8 million in the first quarter of 2024. The Group generated negative EBITDA of EUR 3.8 million in the first quarter of 2025. In the first quarter of 2024, the Group's EBITDA of EUR 34.5 million was impacted by non-recurring income from the sale of the cruise vessel Isabelle.

Amortisation and depreciation expense decreased by EUR 1.3 million to EUR 23.3 million year-on-year.

As a result of decreased outstanding loan balance and declining interest rates net finance costs declined by EUR 1.4 million year-on-year to EUR 6.1 million in the first quarter of 2025 (EUR 7.5 million in the first quarter of 2024).

The Group's unaudited net loss for the first quarter of 2025 was EUR 33.2 million or EUR 0.045 per share. The Group's profitability was largely impacted by 4 vessels in lay-up. By excluding the loss generated from vessels in lay-up the Group's quarterly result was comparable to the pre-crisis first quarter result of 2019. In the first quarter of 2024, the Group earned net profit of EUR 2.6 million or EUR 0.003 per share.

Investments

The Group's investments in the first quarter of 2025 amounted to EUR 13.3 million (EUR 6.3 million in the first quarter of 2024). Majority of investments were maintenance and refurbishment works in the cruise ferries Baltic Princess and Silja Serenade including significant technical and electronic upgrades. During the dry docking of the cruise ferry Silja Serenade the underwater components, such as the bow thrusters and rudders, were serviced, and the vessel was partly repainted. In addition, extensive refurbishment of passenger areas was done on the cruise ferry Baltic Princess.

Financial Position

At the end of the first quarter of 2025, the Group's net debt amounted to EUR 569.1 million, up by EUR 31.4 million compared to the end of the financial year 2024. The net debt to EBITDA ratio was 4.16 at the reporting date (3.07 as at 31 December 2024).

As at 31 March 2025, the Group's cash and cash equivalents amounted to EUR 15.9 million (EUR 18.7 million as at 31 December 2024) and the Group had EUR 54.7 million in unused credit lines (EUR 75.0 million as at 31 December 2025). The total liquidity buffer (cash, cash equivalents and unused credit facilities) amounted to EUR 70.5 million (EUR 93.7 million as at 31 December 2025).

During the quarter, the Group repaid loans and related interest expense in the amount of EUR 20.8 million (EUR 22.4 million in the first quarter of 2024).

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.

Concorded with the Supervisory Board of the Group, the Management Board of the Group has decided to prepare a proposal to the General Meeting of Shareholders to pay a dividend of EUR 0,06 per share in 2025.

Key Figures

1 Alternative performance measures based on ESMA guidelines are disclosed in the Alternative Performance Measures section of 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
Phone: +372 56157170

Attachments

• Tallink Grupp 2025 Q1 Financial Data
• Tallink Grupp 2025 Q1 ENG
• AS Tallink Grupp Q1 2025 Corporate Presentation