Tallinn, 2011-07-15 08:40 CEST (GLOBE NEWSWIRE) -- Q3 results of the 2010/2011 financial year
The revenue of AS Tallink Grupp and its subsidiaries’ (the Group) continued to grow in the third quarter of 2010/2011 financial year (01.03.2011-31.05.2011) in support of the improved revenue per passenger and higher cargo sales from increased cargo units. At the same time the increase was noticeable also in the costs. The quarter started in harsh ice conditions in March and the significantly risen fuel price was dominant throughout the whole quarter.
The Group transported 2 098 356 passengers in the third quarter of 2010/2011 financial year which is 2.7% less than in the same period of the previous financial year as a consequence of different campaigns and tactics in the product offering between the months of second and third quarter. On a cumulative basis the Group has transported 9% more passengers during the nine months of the current financial year compared to the same period of previous financial year. The fourth quarter high season has also started off with a strong 10% year on year increase in the passenger volume.
In the third quarter the positive development continued in the cargo transportation. Derived mainly from the growing economies in the region the Group’s cargo units rose to 76 366 which is 11% more than year ago.
In the third quarter of the 2010/2011 financial year the Group’s unaudited consolidated revenue was EUR 209.5 million which is EUR 7.1 million or 3.5% more than in the third quarter of the previous financial year. Cargo sales increased by EUR 4.2 million or 17.1% and ticket sales by EUR 2.6 million or 5.2% compared to the third quarter of the previous financial year. Ticket revenue per passenger improved by EUR 1.9 and restaurant and shop sales per passenger by EUR 1.1 which are respectively 8.1% and 2.0% better than year ago.
However, the increase in the revenue in the third quarter did not outperform the increase in the costs and the Group’s earnings were lower than year ago. The largest impact to the cost development came from the increased fuel price. The Group’s ship fuel is priced in relation to the market price of 1% Fuel Oil. On average the fuel oil price in the third quarter was 33% higher than last year.
In the third quarter of 2010/2011 financial year the Group’s fuel cost increased by EUR 10.3 million compared to the third quarter of previous financial year. Fuel surcharge was added to the passenger tickets starting from June 2011 which together with the existing fuel surcharge system for the cargo is estimated to provide higher compensation to the fuel cost increase in the fourth quarter and onwards.
Fuel cost increase impact to the results in EUR millions |
Q3 |
9 months |
Change in revenue | +7.1 | +59.6 |
Change in operating result before fuel cost | +3.1 | +22.1 |
Change in fuel cost | -10.3 | -21.1 |
Change in operating result | -7.2 | +1 |
The Group’s sales and marketing activities during the current financial year have played important role in the overall positive passenger number and revenue growth. In the third quarter the Group’s marketing expenses increased by EUR 2.8 million partly in preparation for the high season which has already shown good payoff in the June passenger bookings.
The Group’s EBITDA in the third quarter of the 2010/2011 financial year was EUR 22.7 million which is EUR 7.2 million or a 24% decrease compared to the third quarter of the previous financial year. In the first nine months of the current financial year the Group’s EBITDA is EUR 68.4 million being EUR 1 million higher than year ago. In the third quarter the Group’s unaudited consolidated net loss was EUR 7.3 million compared to the net loss of EUR 3.0 million last year. In the first nine months of the current financial year the net loss is EUR 15.6 million whereas in the same period of the previous financial year the net loss was EUR 20.6 million.
The increase in the Group’s revenues in the third quarter met the management expectations however the sharply increased fuel costs deteriorated the final result.
KEY FIGURES | Q3 2010/2011 | Q3 2009/2010 | change | |
Revenue | EUR million | 209.5 | 202.4 | 3% |
Gross profit | EUR million | 30.2 | 36.8 | -18% |
Gross margin | 14% | 18% | ||
EBITDA | EUR million | 22.7 | 30.0 | -24% |
EBITDA margin | 11% | 15% | ||
Net profit / -loss | EUR million | -7.3 | -3.0 | -144% |
Net profit margin | -3.5% | -1.5% | ||
Depreciation & amortisation | EUR million | 17.8 | 17.9 | -0% |
Investments | EUR million | 4.0 | 1.3 | 308% |
Weighted average number of shares outstanding* | 669 882 040 | 669 882 040 | 0% | |
Earnings per share | EUR | -0.01 | -0.00 | -144% |
Number of passengers | 2 098 356 | 2 156 448 | -3% | |
Number of cargo units | 76 366 | 68 991 | 11% | |
Average number of employees | 6 676 | 6 429 | 4% | |
31.05.2011 | 28.02.2011 | |||
Total assets | EUR million | 1 827 | 1 822 | 0.3% |
Total liabilities | EUR million | 1 175 | 1 163 | 1.1% |
Interest bearing liabilities | EUR million | 1 034 | 1 033 | 0.1% |
Total equity | EUR million | 651 | 659 | -1.1% |
Equity ratio | 36% | 36% | ||
Number of shares outstanding* | 669 882 040 | 669 882 040 | 0% | |
Shareholders’ equity per share | EUR | 1.0 | 1.0 |
EBITDA – Earnings before net financial items, taxes, depreciation and amortization;
EBITDA margin – EBITDA / net sales;
Gross margin – gross profit / net sales;
Net profit margin – net profit / net sales;
Equity ratio – total equity / total assets;
Earnings per share – net profit / weighted average number of shares outstanding;
Shareholder’s equity per share – shareholder’s equity / number of shares outstanding.
* Share numbers exclude own shares.
The Management estimates that the growth in the Group revenues will continue in the fourth quarter. The fuel prices have stayed at high levels bringing noticeably higher fuel cost in Q4 of the current financial year compared to the same period a year ago. Overall the Group’s results are estimated to improve.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(unaudited, in thousands of EUR) | 01.03.2011- | 01.03.2010- | 01.09.2010- | 01.09.2009- | |
31.05.2011 | 31.05.2010 | 31.05.2011 | 31.05.2010 | ||
Revenue | 209,489 | 202,416 | 601,312 | 541,709 | |
Cost of sales | -179,241 | -165,604 | -511,517 | -457,704 | |
Gross profit | 30,248 | 36,812 | 89,795 | 84,005 | |
Marketing expenses | -15,935 | -13,140 | -45,808 | -40,107 | |
Administrative expenses | -9,551 | -10,169 | -29,948 | -29,500 | |
Other income | 167 | 263 | 486 | 790 | |
Other expenses | -8 | -1,656 | -25 | -1,694 | |
Results from operating activities | 4,921 | 12,110 | 14,500 | 13,494 | |
Finance income | 1,748 | -1,817 | 10,091 | 5,354 | |
Finance costs | -14,018 | -13,312 | -40,156 | -39,332 | |
Share of loss of associates | 0 | 0 | -57 | 0 | |
Profit/-loss before income tax | -7,349 | -3,019 | -15,622 | -20,484 | |
Income tax | 0 | 0 | 0 | 0 | |
Net profit/-loss for the period | -7,349 | -3,019 | -15,622 | -20,484 | |
Other comprehensive income/-expense | |||||
Exchange differences on translating foreign operations | 234 | -239 | 54 | 493 | |
Changes in fair value of cash flow hedges | 0 | -104 | -705 | 1,015 | |
Other comprehensive income/-expense for the period | 234 | -343 | -651 | 1,508 | |
Total comprehensive income/-expense for the period | -7,115 | -3,362 | -16,273 | -18,976 | |
Profit/-loss attributable to: | |||||
Equity holders of the paren | -7,349 | -3,019 | -15,622 | -20,484 | |
Total comprehensive income/-expense attributable to: | |||||
Equity holders of the parent | -7,115 | -3,362 | -16,273 | -18,976 | |
Earnings per share (in EUR per share) | |||||
- basic | -0.01 | -0.00 | -0.02 | -0.03 | |
- diluted | -0.01 | -0.00 | -0.02 | -0.03 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of EUR)
ASSETS | 31.05.2011 | 31.08.2010 | |
Current assets | |||
Cash and cash equivalents | 49,637 | 57,488 | |
Trade and other receivables | 42,341 | 42,040 | |
Prepayments | 14,314 | 9,752 | |
Derivatives | 0 | 705 | |
Inventories | 24,840 | 20,035 | |
Total current assets | 131,132 | 130,020 | |
Non-current assets | |||
Investments in associates | 157 | 214 | |
Other financial assets | 322 | 317 | |
Deferred income tax assets | 10,664 | 10,664 | |
Investment property | 300 | 300 | |
Property, plant and equipment | 1,620,717 | 1,663,100 | |
Intangible assets | 63,505 | 66,700 | |
Total non-current assets | 1,695,665 | 1,741,295 | |
TOTAL ASSETS | 1,826,797 | 1,871,315 | |
LIABILITIES AND EQUITY | |||
Current liabilities | |||
Interest bearing loans and borrowings | 118,204 | 63,627 | |
Trade and other payables | 94,216 | 94,054 | |
Deferred income | 32,979 | 23,965 | |
Derivatives | 13,889 | 17,634 | |
Total current liabilities | 259,288 | 199,280 | |
Non-current liabilities | |||
Interest bearing loans and borrowings | 916,000 | 1,004,244 | |
Other liabilities | 65 | 74 | |
Total non-current liabilities | 916,065 | 1,004,318 | |
TOTAL LIABILITIES | 1,175,353 | 1,203,598 | |
EQUITY | |||
Equity attributable to equity holders of the parent | |||
Share capital | 404,291 | 430,648 | |
Share premium | 639 | 639 | |
Reserves | 73,049 | 72,607 | |
Retained earnings | 173,465 | 163,823 | |
Total equity attributable to equity holders of the parent | 651,444 | 667,717 | |
TOTAL EQUITY | 651,444 | 667,717 | |
TOTAL LIABILITIES AND EQUITY | 1,826,797 | 1,871,315 |
CONSOLIDATED CASH FLOW STATEMENT
(unaudited, in thousands of EUR) | 01.09.2010 - | 01.09.2009 - | |
31.05.2011 | 31.05.2010 | ||
Cash flows from operating activities | |||
Net profit/-loss for the period | -15,622 | -20,484 | |
Adjustments | 84,168 | 92,108 | |
Changes in assets related to operating activities | -9,778 | 2,873 | |
Changes in liabilities related to operating activities | 9,999 | 6,811 | |
Income tax paid | -30 | -59 | |
68,737 | 81,249 | ||
Cash flow used for investing activities | |||
Purchase of property, plant and equipment and intangible assets | -8,242 | -5,575 | |
Proceeds from disposals of property, plant and equipment | 64 | 6,466 | |
Issue of shares by associates | 0 | -587 | |
Payments from settlement of derivatives | -3,868 | -3,201 | |
Interest received | 64 | 163 | |
-11,982 | -2,734 | ||
Cash flow from (+)/ used for (-) financing activities | |||
Redemption of loans | -35,805 | -36,665 | |
Change in overdraft | 0 | -15,765 | |
Repayment of finance lease liabilities | -64 | -281 | |
Interest paid | -28,737 | -33,007 | |
-64,606 | -85,718 | ||
TOTAL NET CASH FLOW | -7,851 | -7,203 | |
Cash and cash equivalents: | |||
- at the beginning of period | 57,488 | 49,982 | |
- increase (+) / decrease (-) | -7,851 | -7,203 | |
Cash and cash equivalents at end of period | 49,637 | 42,779 |
Janek Stalmeister
Member of the Management Board, CFO
AS Tallink Grupp
Tel +372 640 9800
E-mail janek.stalmeister@tallink.ee
Harri Hanschmidt
Head of Investor Relations
AS Tallink Grupp
Sadama 5/7. 10111 Tallinn
Tel +372 640 8981
E-mail harri.hanschmidt@tallink.ee