AS Tallink Grupp Unaudited Consolidated Interim Report Q1 2016


Tallinn, 2016-05-12 08:50 CEST (GLOBE NEWSWIRE) -- AS Tallink Grupp Unaudited Consolidated Interim Report Q1 2016

In the first quarter (1 January - 31 March) of the 2016 financial year AS Tallink Grupp and its subsidiaries (the Group) carried 2.0 million passengers which is 8.9% more compared to the first quarter last year. The Group’s unaudited revenue for the first quarter increased by EUR 2.7 million or 1.4% to the total of EUR 192.8 million. Unaudited EBITDA decreased by EUR 3.2 million or 16.3% to the total of EUR 16.3 million, unaudited net result improved by EUR 1.3 million or 9.9% compared to the same period last year and net loss amounted to EUR 12.0 million.

In the first quarter, which is also the low season, the number of passengers increased in all operated routes. The Group also increased the total revenue mainly from higher on-board sales despite less departures due to maintenance and lower revenue from the chartering activity. Compared to the same period last year the first quarter result was affected by noticeably lower revenues from chartering related to the sale of vessels Regina Baltica and Silja Festival, and termination of cruise ferry Silja Europa charter. However, the Group was able to exceed the reduction of charter revenues with higher revenues from main routes. The first quarter profitability was influenced also by onetime expenses from cruise ferry Silja Europa start of operations on Estonia-Finland route. The fast ferry Superstar sale and charter back transaction will impact the result of the current financial year. As a result of these operational changes, in the first quarter there are lower amortization and finance costs but higher operating costs, which resulted lower EBITDA and improved net result.

The Estonia-Finland routes first quarter revenue increased by 4.1% compared to same period last year. The increase is driven mainly by growth in the passenger number, cargo volume was on level with last year. The cruise ferry Silja Europa started daily operations on Tallinn-Helsinki route cruise service on 13th of March 2016. The Estonia-Finland segment result for the first quarter was lower compared to the same period last year due to the cost of charter of the fast ferry Superstar and also onetime costs related to the preparations of the cruise ferry Silja Europa return to the route.

The Finland-Sweden routes first quarter revenue increased by 5.0% compared to same period last year, the increase is supported by a 6.8% growth in the passenger number. The number of cargo units transported increased by 4.0%.

The Estonia-Sweden route revenue increase of 15.5% was mainly driven by a 13.3% increase of passenger number and higher cargo volume. The Latvia-Sweden route showed slightly higher revenue compared with the first quarter last year.

In the first quarter the Group’s restaurants and shop sales increased by EUR 8.8 million or 8.7%, compared to the same period last year. The sales growth is supported mainly by the higher number of passengers travelling with the Group’s operated ships.

The revenue from the leases of vessels has reduced by EUR 6.8 million or 43.2% in the first quarter due to fewer ships are chartered out, compared to the same period last year.

The Group has continuous focus on improving the public areas and cabins in ships to support the customer satisfaction and revenue growth. In the first quarter, the capital expenditure amounted to total of EUR 12.7 million. Along with the routine maintenance of vessels, number of investments were made to the shops, restaurants and cabins on the cruise ferries Silja Symphony and Silja Europa. On the Tallink Shuttle ferry Star the world’s first floating BURGER KING® restaurant was opened.

In the first quarter of the 2016 financial year the Group’s gross profit amounted to EUR 26.5 million which is on level compared to the same period last year and EBITDA decreased by EUR 3.2 million to the total of EUR 16.3 million. The first quarter profitability was impacted by lower total fuel cost but also higher marketing costs, cost of charter of the fast ferry Superstar and onetime costs related to changes in operations. Onetime costs from operations were related to preparations of the cruise ferry Silja Europa return to the route and launching of the Group operated Tallink Logistics Center.

In the first quarter, the depreciation and amortization cost reduced by EUR 0.8 due to the sale of three vessels in 2015. Total finance costs decreased by EUR 2.3 million mainly due to lower interest cost from regular repayment of loans and also repayment of loans related to sale of ships.

The unaudited net loss for the first quarter of the 2016 financial year was EUR 12.0 million or EUR 0.018 per share compared to the net loss of EUR 13.3 million or EUR 0.020 per share in the same period last year.

Cash flow from operations was EUR 16.7 million in first quarter, which is a EUR 1.0 million lower compared to the same period last year. The total liquidity, cash and unused credit facilities, at the end of the first quarter was EUR 136.3 million (EUR 68.8 million, 31 March 2015) providing a strong financial position for sustainable operations. The Group had EUR 91.7 million (EUR 66.3 million, 31 March 2015) in cash and equivalents and the total of unused credit lines were at EUR 44.6 million (EUR 2.5 million, 31 March 2015).

 

Q1 KEY FIGURES                                               

    2016
Jan-Mar
2015
Jan-Mar
Change
Revenue EUR million 192.8 190.2 1.4%
Gross profit EUR million 26.5 26.1 1.4%
Gross margin   13.7% 13.7%  
EBITDA EUR million 16.3 19.5 -16.3%
EBITDA margin   8.4% 10.2%  
Net profit for the period EUR million -12.0 -13.3 9.9%
Net profit margin adjusted   -6.2% -7.0%  
         
Depreciation and amortization EUR million 19.6 20.4 -3.7%
Investments EUR million 12.6 3.6 251.0%
         
Weighted average number of ordinary shares outstanding 1 669,882,040 669,882,040 0.0%
Earnings per share EUR -0.02 -0.02 9.9%
         
Number of passengers   1,953,070 1,793,414 8.9%
Number of cargo units   77,279 75,172 2.8%
Average number of employees   6,886 6,642 3.7%
         
    31.03.2016 31.12.2015  
Total assets EUR million 1,554.8 1,538.8 1.0%
Interest-bearing liabilities EUR million 564.1 549.3 2.7%
Net debt EUR million 472.4 467.4 1.1%
Total equity EUR million 812.3 824.4 -1.5%
         
Equity ratio   52.2% 53.6%  
Net debt to EBITDA   2.7 2.6  
         
Number of ordinary shares outstanding 1 669,882,040 669,882,040 0.0%
Shareholders’ equity per share EUR 1.21 1.23 -1.5%
           

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 euros) 01.01.2016- 01.01.2015-
  31.03.2016 31.03.2015
     
Revenue (Note 3) 192,821 190,153
Cost of sales -166,343 -164,049
Gross profit 26,478 26,104
       
Sales and marketing expenses -18,292 -15,235
Administrative expenses -12,018 -11,715
Other operating income 500 123
Other operating expenses -16 -191
Result from operating activities -3,348 -914
     
Finance income (Note 4) 2,596 5,676
Finance costs (Note 4) -11,273 -16,608
     
Profit/-loss before income tax -12,025 -11,846
       
Income tax -2 -1,500
       
Net profit/-loss for the period -12,027 -13,346
     
Other comprehensive income/-expense    
Items that may be reclassified to profit or loss    
Exchange differences on translating foreign operations -58 -82
Other comprehensive income/-expense for the period -58 -82
Total comprehensive income/-expense for the period -12,085 -13,428
     
Earnings per share (in EUR per share)    
  - basic (Note 5) -0.018 -0.020
  - diluted (Note 5) -0.018 -0.020

               

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(unaudited, in thousands of euros)

ASSETS 31.03.2016 31.12.2015
       
Current assets    
Cash and cash equivalents 91,718 81,976
Trade and other receivables 35,354 36,583
Prepayments 13,075 5,274
Income tax prepayment 439 1,224
Inventories 36,506 29,197
Total current assets 177,092 154,254
       
Non-current assets    
Investments in equity-accounted investees 350 350
Other financial assets 361 308
Deferred income tax assets 19,410 19,410
Investment property 300 300
Property, plant and equipment (Note 7) 1,305,045 1,311,418
Intangible assets (Note 8) 52,195 52,726
Total non-current assets 1,377,661 1,384,512
       
TOTAL ASSETS 1,554,753 1,538,766
       
       
LIABILITIES AND EQUITY    
     
Current liabilities    
Interest bearing loans and borrowings (Note 9) 108,851 81,889
Trade and other payables 94,287 88,480
Income tax liability 3,586 4,567
Deferred income 38,056 28,906
Total current liabilities 244,780 203,842
       
Non-current liabilities    
Interest bearing loans and borrowings (Note 9) 455,277 467,447
Derivatives (Note 6) 42,359 42,863
Other payables 0 192
Total non-current liabilities 497,636 510,502
TOTAL LIABILITIES 742,416 714,344
       
EQUITY    
Equity attributable to equity holders of the parent    
Share capital 404,290 404,290
Share premium 639 639
Reserves 65,025 65,083
Retained earnings 342,383 354,410
Total equity attributable to equity holders of the parent 812,337 824,422
TOTAL EQUITY 812,337 824,422
       
TOTAL LIABILITIES AND EQUITY 1,554,753 1,538,766

 

CONSOLIDATED CASH FLOW STATEMENT

(unaudited, in thousands of euros) 01.01.2016- 01.01.2015-
    31.03.2016 31.03.2015
Cash flows from operating activities    
Net profit/-loss for the period -12,027 -13,346
Adjustments 28,192 33,028
Changes in receivables and prepayments related to operating activities -5,756 -4,811
Changes in inventories -7,309 2,528
Changes in liabilities related to operating activities 13,719 336
Income tax paid -160 -33
  16,659 17,702
Cash flow from/used in investing activities    
Purchase of property, plant and equipment and intangible assets (Notes 7, 8, 9) -12,709 -3,612
Proceeds from disposals of property, plant and equipment 134 12
Interest received 18 22
  -12,557 -3,578
Cash flows used in financing activities    
Repayment of loans (Note 9) -14,728 -15,024
Change in overdraft (Note 9) 26,963 10,049
Payment of finance lease liabilities (Note 9) -24 -20
Interest paid -5,550 -6,745
Payments for settlement of derivatives -1,021 -1,419
  5,640 -13,159
       
TOTAL NET CASH FLOW 9,742 965
       
Cash and cash equivalents:    
- at the beginning of period 81,976 65,311
- increase (+) / decrease (-) 9,742 965
- at the end of period 91,718 66,276

 

         Veiko Haavapuu
         Finance Director
         
         AS Tallink Grupp
         Sadama 5/7. 10111 Tallinn
         Tel. +372 640 9914
         E-mail veiko.haavapuu@tallink.ee


Attachments

Interim 2016 Q1eng.pdf