Tallinn, 2015-11-12 08:50 CET (GLOBE NEWSWIRE) --
AS Tallink Grupp Unaudited Consolidated Interim Report Q3 2015
In the third quarter (1 July ? 30 September) of the 2015 financial year AS
Tallink Grupp and its subsidiaries? (the Group) carried 2.7 million passengers
which is 5.5% more compared to the third quarter last year. The Group?s
unaudited revenue for the third quarter of 2015 increased by EUR 10.9 million
or 4.2% year on year to the total of EUR 273.6 million, EBITDA increased by EUR
12.8 million or 20.1% to the total of EUR 76.8 million, compared to the same
period last year. Net profit increased by EUR 9 million or 25.1% to the total
of EUR 45.2 million, compared to the same period last year.
The Group?s revenue for the first nine months of 2015 was EUR 717.6 million and
increased by EUR 20.3 million or 2.9% year on year comparison. EBITDA increased
by EUR 41.9 million to the total of EUR 151.5 million and net profit increased
by EUR 41.5 million to the total of EUR 60.4 million, compared to the same
period last year.
The Estonia-Finland route third quarter revenue increased by 5.6% compared to
same period last year. The increase is driven mainly by an 8.9% growth in the
passenger number. The passenger number peaked in July when Group served a
record number of 600 thousand passengers, which is an all-time high monthly
passenger number on that route. The growth of 15.3% in cargo units transported
is supported mainly by added capacity.
The Finland-Sweden routes third quarter revenue increased by 6.5% compared to
the same period last year, driven by 8.4% growth in the passenger number. The
number of cargo units transported decreased by 28.8% due to reduced capacity.
The Estonia-Sweden route passenger number increased by 1.5% and cargo volumes
decreased by 8.3%. The Latvia-Sweden route, operating with only one vessel
compared to two vessels last year, showed a 25.6% decline in the passenger
number and cargo units transported decreased by 35.2%.
The Group?s restaurants and shop sales increased by EUR 9 million or 6.8% in
the third quarter, compared to the same period last year, the sales growth is
supported mainly by the growth in the passenger number. The upgrades to
restaurant and shop concept throughout the fleet in past year, combined with
the operational changes, have resulted in higher average on-board revenue per
passenger.
The revenue from the chartered out vessels has reduced in the third quarter
compared to the same period last year due to fewer ships in charter. Two ships
previously in charter were sold in the second quarter of 2015.
In the third quarter, the summer period high season, the Group experienced
strong price competition. The proactive marketing activities, improved
visibility of sales campaigns and earlier investments into increasingly
important online sales solutions has enabled the Group to reclaim the market
share on its main routes and increase the total revenue.
In February 2015 AS Tallink Grupp signed a contract for the construction of the
new generation LNG powered fast ferry. The new fast ferry is being built by
Meyer Turku Oy and will cost around 230 million euros. The start of production
of the new LNG fast ferry was celebrated on the 4th of August 2015 at Meyer
Turku shipyard and the delivery of the vessel is planned in the beginning of
2017. The new LNG fast ferry is going to operate on the Tallinn-Helsinki route
shuttle service.
In order to be ready for the delivery of the new generation LNG fast ferry to
the Tallinn-Helsinki route early 2017, the Group has decided to sell the fast
ferry Superstar, at present operating on the route shuttle service. The fast
ferry Superstar will be sold to Corsica Ferries Group, concurrently the parties
have entered into bareboat charter agreement and the Group will continue to
operate the fast ferry Superstar on its Tallinn-Helsinki route shuttle service
until the beginning of 2017, when the new LNG fast ferry will start to operate
on the route. Change of the ownership of the fast ferry Superstar and start of
the charter period is planned in December 2015.
In the third quarter of the 2015 financial year the Group?s gross profit
amounted to EUR 84.8 million and EBITDA to EUR 76.8 million being respectively
EUR 15.2 million and EUR 12.9 million more compared to the same period last
year. The increase in the Group?s results is mainly attributed to the growth in
passenger number, higher on-board revenue per passenger and decreased costs
related to operations.
The Group?s net debt decreased by EUR 30.8 million to a total of EUR 583.6
million and the net debt to EBITDA ratio was 3.0 at the end of third quarter.
The Group?s interest cost reduced by EUR 2.9 million, combined with less gain
from foreign exchange revaluations, the total finance costs increased by EUR
1.3 million compared to the third quarter last year.
The unaudited net profit for the third quarter of the 2015 financial year was
EUR 45.2 million or EUR 0.07 per share compared to the net profit of EUR 36.2
million or EUR 0.05 per share in the same period last year. The Group?s net
profit for the nine months of the 2015 financial year was EUR 60.4 million or
EUR 0.09 per share compared to the EUR 18.9 million or EUR 0.03 per share in
the same period last year.
The total dividend of EUR 13.4 million (0.02 euros per share) was paid out in
the beginning of July 2015 according to the decision of Annual General Meeting
from June 2015.
Cash flow from operations increased by EUR 4.5 million in third quarter
compared to the same period last year. The total liquidity, cash and unused
credit facilities, at the end of the third quarter was EUR 100.4 million
providing a strong financial position. At the end of the third quarter of 2015
the Group had EUR 79.1 million in cash and equivalents and the total of unused
credit lines were at EUR 21.3 million.
Q3 KEY FIGURES 2015 2014 Change
July-Sep July-Sep
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Revenue EUR million 273.6 262.7 4.2%
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Gross profit EUR million 84.8 69.6 21.8%
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Gross margin 31.0% 26.5%
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EBITDA EUR million 76.8 64.0 20.1%
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EBITDA margin 28.1% 24.4%
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Net profit for the EUR million 45.2 36.2 25.1%
period
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Net profit margin 16.5% 13.8%
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Depreciation and EUR million 18.4 19.3 -4.7%
amortization
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Investments EUR million 11.3 10.6 6.6%
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Weighted average number of ordinary shares 669,882,040 669,882,040 0.0%
outstanding
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Earnings per share EUR 0.07 0.05 25.1%
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Number of passengers 2,701,412 2,561,257 5.5%
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Number of cargo units 76,062 76,830 -1.0%
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Average number of 7,040 7,181 -2.0%
employees
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30.09.2015 30.06.2015
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Total assets EUR million 1,652.6 1,665.5 -0.8%
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Interest-bearing EUR million 662.7 695.5 -4.7%
liabilities
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Net debt EUR million 583.6 614.5 -5.0%
--------------------------------------------------------------------------------
Total equity EUR million 825.3 780.2 5.8%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity ratio 49.9% 46.8%
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Net debt to EBITDA 3.0 3.4
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--------------------------------------------------------------------------------
Number of ordinary shares outstanding1 669,882,040 669,882,040 0.0%
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Shareholders? equity per EUR 1.23 1.16 5.8%
share
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EBITDA: Earnings before net financial items, taxes, depreciation and
amortization;
Earnings per share: net profit / 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 margin: gross profit / net sales;
EBITDA margin: EBITDA / net sales;
Net profit margin: net profit / net sales;
Net debt: Interest bearing liabilities less cash and cash equivalents;
Net debt to EBITDA: Net debt / 12-months trailing EBITDA.
1 Share numbers exclude own shares.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(unaudited, in thousands of 01.07.2015- 01.07.2014- 01.01.2015- 01.01.2014-
euros)
30.09.2015 30.09.2014 30.09.2015 30.09.2014
================================================================================
Revenue (Note 3) 273,557 262,656 717,572 697,325
Cost of sales -188,803 -193,085 -544,341 -565,007
Gross profit 84,754 69,571 173,231 132,318
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Marketing expenses -15,085 -15,084 -46,801 -46,883
Administrative expenses -10,992 -10,296 -34,310 -35,573
Other income -125 462 1,360 987
Other expenses -156 -18 -737 -358
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Result from operating 58,396 44,635 92,743 50,491
activities
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--------------------------------------------------------------------------------
Finance income (Note 4) 2,210 3,270 9,507 7,137
Finance costs (Note 4) -12,039 -11,747 -32,647 -33,384
Profit/-loss before income 48,567 36,158 69,603 24,244
tax
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Income tax -3,355 -8 -9,205 -5,367
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Net profit/-loss for the 45,212 36,150 60,398 18,877
period
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Other comprehensive
income/-expense
Items that may be
reclassified to profit or
loss
Exchange differences on -202 36 -256 44
translating foreign
operations
Other comprehensive -202 36 -256 44
income/-expense for the
period
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Total comprehensive 45,010 36,186 60,142 18,921
income/-expense for the
period
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--------------------------------------------------------------------------------
Earnings per share (in EUR
per share)
- basic (Note 5) 0.07 0.05 0.09 0.03
- diluted (Note 5) 0.07 0.05 0.09 0.03
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of euros)
ASSETS 30.09.2015 31.12.2014
================================================================================
Current assets
Cash and cash equivalents 79,107 65,311
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Trade and other receivables 42,022 38,210
Prepayments 10,938 5,448
Inventories 28,676 31,315
Total current assets 160,743 140,284
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Non-current assets
Investments in equity-accounted investees 286 286
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Other financial assets 315 252
Deferred income tax assets 21,349 21,338
Investment property 300 300
Property, plant and equipment (Note 7) 1,416,648 1,467,964
Intangible assets (Note 8) 52,941 55,174
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Total non-current assets 1,491,839 1,545,314
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---------------------------------------------------------
TOTAL ASSETS 1,652,582 1,685,598
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LIABILITIES AND EQUITY
================================================================================
Current liabilities
Interest bearing loans and borrowings (Note 9) 139,672 149,850
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Trade and other payables 83,546 91,236
Income tax liability 6,800 1,300
Deferred income 30,254 29,408
Derivatives (Note 6) 43,985 41,982
Total current liabilities 304,257 313,776
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Non-current liabilities
-----------------------
-----------------------
Interest bearing loans and borrowings (Note 9) 523,062 593,532
---------------------------------------------------------
Total non-current liabilities 523,062 593,532
--------------------------------------------------------------------------------
TOTAL LIABILITIES 827,319 907,308
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EQUITY
--------------------------------------------------------------------------------
Equity attributable to equity holders of the parent
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Share capital 404,290 404,290
Share premium 639 639
Reserves 71,465 70,129
Retained earnings 348,869 303,232
--------------------------------------------------------------------------------
Total equity attributable to equity holders of the 825,263 778,290
parent
--------------------------------------------------------------------------------
TOTAL EQUITY 825,263 778,290
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL LIABILITIES AND EQUITY 1,652,582 1,685,598
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CONSOLIDATED CASH FLOW STATEMENT
(unaudited, in thousands of euros) 01.01.2015- 01.01.2014-
30.09.2015 30.09.2014
Cash flows from operating activities
Net profit/-loss for the period 60,398 18,877
Adjustments 91,250 92,806
Changes in receivables and prepayments related to -8,089 -6,165
operating activities
Changes in inventories 2,639 5,077
Changes in liabilities related to operating activities -7,103 -3,973
Income tax paid -490 108
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138,605 106,730
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Cash flow used in investing activities
Purchase of property, plant and equipment and -29,823 -30,919
intangible assets (Notes 7, 8, 9)
Proceeds from disposals of property, plant and 25,004 180
equipment
Interest received 57 78
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-4,762 -30,661
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Cash flow used in financing activities
Repayment of loans (Note 9) -68,962 -59,946
Change in overdraft (Note 9) -8,700 31,069
Payment of finance lease liabilities (Note 9) -60 -54
Interest paid -21,485 -24,574
Payments for settlement of derivatives -3,195 -3,033
Payment of transaction costs related to loans -1,429 0
Dividends paid (Note 12) -13,398 -20,096
Income tax on dividends paid -2,818 -5,342
-120,047 -81,976
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TOTAL NET CASH FLOW 13,796 -5,907
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Cash and cash equivalents:
- at the beginning of period 65,311 72,012
- increase (+) / decrease (-) 13,796 -5,907
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- at the end of period 79,107 66,105
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Veiko Haavapuu
Finance Director
AS Tallink Grupp
Sadama 5/7. 10111 Tallinn
Tel +372 640 9914
E-mail veiko.haavapuu@tallink.ee