AS Tallink Grupp Unaudited Consolidated Interim Report for the Q4 and 12 months of 2024
The results of AS Tallink Grupp for the Q4 and 12 months 2024 will be introduced
at an Investor Webinar held today at 12:00 (EEST). To participate, please join
via the following link; (https://teams.microsoft.com/l/meetup-
join/19%3ameeting_MDcwMmQ5OTEtYjI5OC00YjZkLTlmMzUtODUxOTY1ZTEyOWY4%40thread.v2/0
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kindly ask participants to provide their questions latest by 11:00 am by email
to: [email protected] (https://www.globenewswire.com/Tracker?data=sPXC0PO4t9B-
uBXRwzpCc9_urHLPH-
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Further details are available in a previously published announcement
(https://view.news.eu.nasdaq.com/view?id=1342622&lang=en).
In the financial year 2024 (1 January - 31 December), AS Tallink Grupp and its
subsidiaries (hereinafter referred to as "the Group") carried 5 580 016
passengers, which is 2.2% less than in the financial year 2023. The number of
cargo units transported decreased by 6.4% compared to the previous year
amounting to 303 234. The number of passenger vehicles was down by 7.5% year-on-
year and amounted to 777 592.
The Group's unaudited consolidated revenue amounted to EUR 785.8 million (EUR
835.3 million in the financial year 2023), down by 5.9% year-on-year. Unaudited
EBITDA was EUR 175.2 million (EUR 214.5 million in the financial year 2023) and
the unaudited net profit for the period was EUR 40.3 million (EUR 78.9 million
in the financial year 2023).
The following operational factors impacted the Group's revenue and operating
results in the financial year 2024:
* 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 financial year, the Group operated 14 vessels including
2 shuttle vessels, 2 cargo vessels, 5 operating cruise ferries, 3 vessels
that were chartered out (4 at the beginning of the year) and 2 vessels that
were in lay-up.
* The Group extended the charter agreement of the cruise ferry Galaxy I until
October 2025 with the extension option of 6+6 months and signed an agreement
for chartering of the cruise ferry Silja Europa until June 2025 with the
extension option of 7+6+6 months at the end of the agreement term.
* The Group sold the cruise ferry Isabelle in January 2024.
* The Group operated 3 hotels in Tallinn and 1 in Riga.
* The Group's net debt was EUR 537.7 million as at the end of the financial
year (EUR 555.7 million as at 30 September 2024) bringing the net debt to
EBITDA ratio to 3.07 as at 31 December 2024.
* In the financial year 2024, total loan repayment and related interest
expense amounted to EUR 116.1 million.
* Payment of dividends in the amount of EUR 44.6 million and related income
tax expense in the amount of EUR 9.2 million.
* As a result of the voluntary takeover bid, the shareholding of AS Infortar,
the core shareholder of the Group, increased from 46.8% to 68.5% as at 9
August 2024. AS Tallink Grupp continues as an independent listed company
also after AS Infortar become the majority shareholder of the Group.
* 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 financial year 2024, the Group's total revenue decreased by EUR 49.5
million to EUR 785.8 million compared to EUR 835.3 million in the financial year
2023.
Revenue from route operations (the Group's core business) decreased by EUR 6.9
million to EUR 638.9 million compared to the financial year 2023. The segment
result from route operations (the Group's core business) amounted to EUR 81.5
million, down by EUR 25.7 million compared to the financial year 2023.
The number of passengers carried on the Estonia-Finland route increased by 2.5%
in year-on-year comparison. The number of transported cargo units decreased by
5.1%. Revenue from the Estonia-Finland route increased by EUR 14.8 million to
EUR 312.8 million and the segment result increased by EUR 2.3 million to EUR
81.3 million, year-on-year. The segment reflects the operations of two shuttle
vessels, MyStar and Megastar, and the cruise ferry Victoria I except for from
31 May 2024 until 31 August 2024 when the Tallinn-Helsinki route was operated by
two shuttle vessels as the cruise ferry Victoria I operated the Tallinn-
Stockholm route.
In the financial year 2024, the year-on-year decrease in the number of
passengers on Finland-Sweden routes was 15.4%. The number of transported cargo
units increased by 3.4%. The routes' revenue decreased by EUR 28.3 million to
EUR 228.7 million and the segment result decreased by EUR 20.9 million to EUR
2.8 million, year-on-year. The segment reflects the operations of one cruise
ferry on the Turku-Kapellskär route until 31 May 2024 and on the Turku-Stockholm
route from 31 May 2024 as well as two cruise ferries on the Helsinki-Stockholm
route.
On Estonia-Sweden routes the number of carried passengers increased by 8.0%
while the number of transported cargo units decreased by 19.6% compared to the
financial year 2023. Year-on-year, the revenue of Estonia-Sweden routes
increased by EUR 6.6 million to EUR 97.4 million. The segment result declined by
EUR 7.1 million to a loss of EUR 2.6 million. Estonia-Sweden routes reflect the
operation of two cargo vessels on the Paldiski-Kapellskär route and one cruise
ferry on the Tallinn-Stockholm route. However, during the summer peak season
from 31 May to 31 August 2024 the Tallinn-Stockholm route was operated in
addition to cargo vessels with two cruise ferries - Victoria I and Baltic Queen.
Revenue from the segment Other decreased by a total of EUR 43.2 million and
amounted to EUR 152.8 million. The decrease was mainly driven by less vessels on
charter. As at the end of the financial year 2024, the Group had 3 vessels on
charter (end of the financial year 2023: 5 vessels on charter).
At the end of the financial year 2024, the following vessels were chartered out:
* The shuttle vessel James Joyce (formerly Star) was chartered out from 5 May
2023 for 20 months with an option to extend the charter by 2+2 years and an
option to purchase the vessel. As the charterer decided not to use the
extension option the agreement expired in January 2025. Starting from
February 2025 the shuttle vessel operates the Paldiski-Kapellskär route.
* 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 financial year 2024, the Group's gross profit declined by EUR 50.3
million to EUR 153.6 million compared to EUR 203.8 million in the financial year
2023. EBITDA declined by EUR 39.3 million and amounted to EUR 175.2 million.
Amortisation and depreciation expense decreased by EUR 3.5 million to EUR 97.8
million year-on-year.
As a result of decreased outstanding loan balance and declining interest rates
net finance costs declined by EUR 7.3 million year-on-year to EUR 28.3 million
in the financial year 2024 (EUR 35.5 million in the financial year 2023).
The Group's unaudited net profit for the financial year 2024 was EUR 40.3
million or EUR 0.054 per share compared to EUR 78.9 million or EUR 0.106 per
share in the financial year 2023.
Investments
The Group's investments in the financial year 2024 amounted to EUR 22.4 million
(EUR 28.2 million in the financial year 2023). Main investments in vessels
included maintenance and repair works i.e., technical works as well as interior
upgrades. The Group also continued to invest in the improvement of its IT
systems.
Financial Position
At the end of the financial year 2024, the Group's net debt amounted to EUR
537.7 million, down by EUR 18.0 million compared to the end of third quarter of
2024. The net debt to EBITDA ratio was 3.07 at the reporting date (2.98 as at
30 September 2024).
As at 31 December 2024, the Group's cash and cash equivalents amounted to EUR
18.7 million (EUR 32.6 million as at 30 September 2024) and the Group had EUR
75.0 million in unused credit lines (EUR 75.0 million as at 30 September 2024).
The total liquidity buffer (cash, cash equivalents and unused credit facilities)
amounted to EUR 93.7 million (EUR 107.6 million as at 30 September 2024).
The decline in cash and cash equivalents in the financial year 2024 was driven
by the payment of dividends (EUR 44.6 million) and related income tax (EUR 4.9
million) as well as the repayment of loans and related interest expense (EUR
116.1 million). In the financial year 2023 the net repayment of loans amounted
to EUR 189.6 million.
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.
The Annual General Meeting of Shareholders held on 7 May 2024 adopted a
resolution to pay dividends of EUR 0.06 per share for the financial year of
2023. The dividends in the amount of EUR 44.6 million were paid out on 3 July
2024.
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 6 cents per share in 2025 for the financial year of 2024.
Results of the Q4 2024
In the fourth quarter 2024 (1 October - 31 December), the Group carried 1.3
million passengers which is down by 2.2% compared to the same period last year.
The Group's unaudited revenue for the period decreased by 5.3% and amounted to
EUR 183.5 million (EUR 193.7 million in October-December 2023). Unaudited EBITDA
was EUR 25.7 million (EUR 36.8 million in October-December 2023) and unaudited
net loss was EUR 5.2 million (net profit of EUR 2.2 million in October-December
2023).
The financial results of Q4 2024 were impacted by the following factors:
* Low consumer and business confidence in the home markets and geopolitical
tensions.
* Two vessels in lay-up including the cruise vessel Romantika the charter
agreement of which was prematurely terminated in September 2023 and MV
Superfast IX (formerly Atlantic Vision) the charter agreement of which ended
in May 2024. The Group has not been able to find profitable operations for
both vessels in lay-up.
* Repayment of long-term loans and related interest expenses in the amount of
EUR 34.5 million.
* In October 2024, the charter agreement of the cruise ferry Galaxy I was
extended by 12 months until October 2025 with the option of extending the
agreement at the end of the agreement period by another 6+6 months.
Key Figures
For the Jan-Dec Jan-Dec Jan-Dec
period Q4 2024 Q4 2023 Q4 2022 2024 2023 2022
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Revenue (EUR
million) 183.5 193.7 203.7 785.8 835.3 771.4
Gross
profit/loss
(EUR million) 25.9 34.9 41.8 153.6 203.8 113.5
EBITDA¹ (EUR
million) 25.7 36.8 50.4 175.2 214.5 135.8
EBIT¹ (EUR
million) 1.3 11.4 23.5 77.4 113.3 37.7
Net
profit/loss
for the
period (EUR
million) -5.2 2.2 16.7 40.3 78.9 13.9
Depreciation
and
amortisation
(EUR million) 24.4 25.5 27.0 97.8 101.2 98.1
Capital
expenditures¹
²(EUR
million) 5.9 5.9 179.7 22.4 28.2 203.3
Weighted
average
number of
ordinary
shares
outstanding 743 569 064 743 569 064 743 569 064 743 569 064 743 569 064 743 569 064
Earnings/loss
per share¹
(EUR) -0.007 0.003 0.022 0.054 0.106 0.019
Number of
passengers 1 310 014 1 338 921 1 296 047 5 580 016 5 705 600 5 462 085
Number of
cargo units 64 606 76 198 96 052 303 234 323 990 409 769
Average
number of
employees 4 844 4 879 4 948 4 964 4 879 5 023
As at 31.12.2024 30.09.2024 30.09.2023 31.12.2024 31.12.2023 31.12.2022
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Total assets
(EUR million) 1 463.9 1 498.9 1 597.4 1 463.9 1 555.2 1 691.6
Total
liabilities
(EUR million) 681.6 711.5 813.7 681.6 769.5 984.7
Interest-
bearing
liabilities
(EUR million) 556.4 588.3 684.8 556.4 649.3 853.5
Net debt¹
(EUR million) 537.7 555.7 620.4 537.7 607.3 738.6
Net debt to
EBITDA¹ 3.1 3.0 2.7 3.1 2.8 5.4
Total equity
(EUR million) 782.3 787.4 783.7 782.3 785.8 706.9
Equity ratio¹
(%) 53% 53% 49% 53% 51% 42%
Number of
ordinary
shares
outstanding 743 569 064 743 569 064 743 569 064 743 569 064 743 569 064 743 569 064
Shareholders'
equity per
share (EUR) 1.05 1.06 1.05 1.05 1.06 0.95
Jan-Dec Jan-Dec Jan-Dec
Ratios¹ Q4 2024 Q4 2023 Q4 2022 2024 2023 2022
------------------------------------------------------------------------
Gross margin
(%) 14.1% 18.0% 20.5% 19.5% 24.4% 14.7%
EBITDA margin
(%) 14.0% 19.0% 24.8% 22.3% 25.7% 17.6%
EBIT margin
(%) 0.7% 5.9% 11.5% 9.9% 13.6% 4.9%
Net
profit/loss
margin (%) -2.8% 1.1% 8.2% 5.1% 9.4% 1.8%
ROA (%) 5.1% 7.0% 2.4% 5.1% 7.0% 2.4%
ROE (%) 5.2% 10.6% 2.1% 5.2% 10.6% 2.1%
ROCE (%) 6.0% 8.4% 3.1% 6.0% 8.4% 3.1%
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
Jan-Dec Jan-Dec
Unaudited, in thousands of EUR Q4 2024 Q4 2023 2024 2023
-------------------------------------------------------------------------------
Revenue 183 505 193 737 785 822 835 325
Cost of sales -157 571 -158 809 -632 266 -631 491
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Gross profit/loss 25 934 34 928 153 556 203 834
Sales and marketing expenses -11 502 -11 381 -43 849 -42 162
Administrative expenses -13 837 -14 978 -52 846 -52 472
Impairment loss on receivables
Other operating income 816 2 893 21 684 4 275
Other operating expenses -114 -103 -1 115 -171
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Result from operating activities 1 297 11 359 77 430 113 304
Finance income 305 528 938 1 332
Finance costs -6 822 -10 061 -29 198 -36 864
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Share of profit/loss of equity-accounted
investees 0 -75 0 -75
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Profit/loss before income tax -5 220 1 751 49 170 77 697
Income tax 0 413 -8 896 1 175
Net profit/loss for the period -5 220 2 164 40 274 78 872
Net profit/loss for the period
attributable to equity holders of the
Parent -5 220 2 164 40 274 78 872
Other comprehensive income
Items that may be reclassified to profit
or loss
Exchange differences on translating
foreign operations -26 -201 332 -172
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Other comprehensive income for the period -26 -201 332 -172
Total comprehensive profit/loss for the
period -5 246 1 963 40 606 78 700
Total comprehensive profit/loss for the
period attributable to equity holders of
the Parent -5 246 1 963 40 606 78 700
EPS (in EUR) -0.007 0.003 0.054 0.106
Diluted EPS (in EUR) -0.007 0.003 0.054 0.106
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Consolidated statement of financial position
Unaudited, in thousands of EUR 31.12.2024 31.12.2023
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ASSETS
Cash and cash equivalents 18 705 41 921
Trade and other receivables 25 268 31 766
Prepayments 8 764 7 661
Prepaid income tax 0 193
Inventories 48 083 41 411
Short-term intangible assets 6 901 0
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Current assets 107 721 122 952
Investments in equity-accounted investees 0 0
Other financial assets and prepayments 518 4 794
Deferred income tax assets 21 840 21 840
Investment property 300 300
Property, plant and equipment 1 310 000 1 377 664
Intangible assets 23 562 27 671
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Non-current assets 1 356 220 1 432 269
TOTAL ASSETS 1 463 941 1 555 221
LIABILITIES AND EQUITY
Interest-bearing loans and borrowings 104 549 104 097
Trade and other payables 95 146 85 406
Payables to owners 6 6
Income tax liability 7 10
Deferred income 30 102 34 788
--------------------------------------------------------------------------
Current liabilities 229 810 224 307
Interest-bearing loans and borrowings 451 825 545 160
--------------------------------------------------------------------------
Non-current liabilities 451 825 545 160
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Total liabilities 681 635 769 467
Share capital 349 477 349 477
Share premium 663 663
Reserves 65 901 67 056
Retained earnings 366 265 368 558
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Equity attributable to equity holders of the Parent 782 306 785 754
Total equity 782 306 785 754
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TOTAL LIABILITIES AND EQUITY 1 463 941 1 555 221
Consolidated statement of cash flows
Jan-Dec Jan-Dec
Unaudited, in thousands of EUR Q4 2024 Q4 2023 2024 2023
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CASH FLOWS FROM OPERATING ACTIVITIES
Net profit/loss for the period -5 220 2 164 40 274 78 872
Adjustments 30 975 34 603 117 243 135 324
Changes in:
Receivables and prepayments related to
operating activities 7 273 6 622 5 705 1 340
Inventories -4 638 -1 653 -13 573 -1 446
Liabilities related to operating activities 2 535 -7 754 8 505 -10 457
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Changes in assets and liabilities 5 170 -2 785 637 -10 563
Cash generated from operating activities 30 925 33 982 158 154 203 633
Income tax repaid/paid 11 -75 164 -186
-------------------------------------------------------------------------------
NET CASH FROM/USED OPERATING ACTIVITIES 30 936 33 907 158 318 203 447
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, equipment and
intangible assets -5 923 -5 882 -22 260 -28 131
Proceeds from disposals of property, plant,
equipment 39 369 24 555 613
Interest received 305 528 938 1 332
-------------------------------------------------------------------------------
NET CASH USED IN INVESTING ACTIVITIES -5 579 -4 985 3 233 -26 186
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans received 0 59 972 0 59 972
Repayment of loans received -27 553 -95 954 -87 045 -251 431
Change in overdraft 0 0 0 -15
Payment of lease liabilities -4 772 -4 494 -18 659 -21 519
Interest paid -6 936 -7 615 -29 095 -32 827
Payment of transaction costs related to
loans 0 -3 343 -450 -4 455
Dividends paid 0 0 -44 614 0
Income tax on dividends paid 0 0 -4 904 0
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NET CASH FROM/USED IN FINANCING ACTIVITIES -39 261 -51 434 -184 767 -250 275
TOTAL NET CASH FLOW -13 904 -22 512 -23 216 -73 014
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Cash and cash equivalents at the beginning
of period 32 609 64 433 41 921 114 935
Change in cash and cash equivalents -13 904 -22 512 -23 216 -73 014
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Cash and cash equivalents at the end of
period 18 705 41 921 18 705 41 921
Anneli Simm
Investor Relations Manager
AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail [email protected] (mailto:[email protected])
Phone: +372 56157170