AS Tallink Grupp Unaudited Consolidated Interim Report Q2 2016


Tallinn, 2016-08-11 08:50 CEST (GLOBE NEWSWIRE) -- AS Tallink Grupp Unaudited Consolidated Interim Report Q2 2016

In the second quarter (1 April - 30 June) of the 2016 financial year AS Tallink Grupp and its subsidiaries’ (the Group) carried 2.4 million passengers which is 2.8% more compared to the second quarter last year. The number of cargo units transported increased by 7.3% and the number of passenger vehicles transported increased by 3.8% compared to same period as last year.

The Group’s unaudited consolidated revenue for the second quarter was EUR 245.2 million, which is 3.4% less compared to same period last year. The Group’s unaudited EBITDA for the second quarter amounted to EUR 36.2 million compared to EUR 55.2 million last year and unaudited net profit was EUR 9.8 million compared to EUR 28.5 million in same period last year.

In the second quarter the revenue of core operations increased from higher on-board sales which was supported by the larger number of passengers travelling with the Group’s operated ships. The second quarter total revenue and operating result were lower compared to the same period last year mainly due to less revenue from chartering related to the sale of vessels Regina Baltica and Silja Festival and termination of cruise ferry Silja Europa charter. The fast ferry Superstar sale and charter back transaction affects the result of the current financial year. As a result of these operational changes, in the second quarter there are lower amortization and interest costs but higher operating costs compared to same period last year.

In expectation of the new LNG fast ferry Megastar to the market next year, the Group brought the cruise ferry Silja Europa to Tallinn-Helsinki route cruise service in March 2016. This operational change has enabled the Group to increase its market share on the route by 2% to 57%, compared to the second quarter last year. The Estonia-Finland routes second quarter revenue increased by 3.4% compared to same period last year. The increase is driven mainly by growth in the passenger number and cargo volume from the added capacity, compared to last year. The Estonia-Finland segment result for the second quarter was lower compared to the same period last year due to the cost of charter of the fast ferry Superstar, lower profitability of cruise ferry Silja Europa and scheduled maintenance of cruise ferry Baltic Queen in the second quarter.

The Finland-Sweden routes second quarter revenue decreased by 3.7%, compared to same period last year. Fewer passengers travelled on the routes compared to same period last year due to the spread of the noro virus in the beginning of June 2016. However the Group’s market share increased by 1% to 53%, as there was more departures compared to second quarter last year. The number of cargo units transported on Finland-Sweden routes increased by 6.7% in the second quarter.

The Estonia-Sweden route revenue increase of 7.1% was mainly driven by higher on-board sales and higher cargo volume. The Latvia-Sweden route showed slightly higher revenue compared with the second quarter last year. Driven by the higher revenue, the second quarter segment result improved for both routes.

In the second quarter the Group’s total restaurants and shop sales increased by EUR 3.6 million or 2.7%, 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. Throughout the second quarter there was a price pressure from competition on all routes. Despite the increase in passenger number the average ticket price per passenger was lower and the total revenue from the ticket sale is on level with the second quarter last year.

The revenue from the leases of vessels and other revenues related to the leases has reduced total by EUR 11.8 million in the second quarter due to fewer ships are chartered out, compared to the same period last year.

In the second quarter of the 2016 financial year the Group’s gross profit decreased by 22.6% and amounted to EUR 48.3 million, compared to the same period last year, EBITDA decreased by EUR 19.0 million to the total of EUR 36.2 million. The second quarter profitability was impacted by lower revenue due to the change in revenue structure; by lower total fuel cost but also higher marketing costs, cost of charter of the fast ferry Superstar and higher ships operating costs.

In the second quarter, the depreciation and amortization cost reduced by EUR 0.5 mainly due to the sale of three vessels in 2015.

In the second quarter the Group’s net debt decreased by EUR 6.2 million to a total of EUR 466.2 million and the net debt to EBITDA ratio was a solid 2.9 at the end of second quarter.

The total finance costs increased by EUR 4.3 million mainly from revaluation of cross currency and interest derivatives. The lower interest cost from regular repayment of loans and also repayment of loans related to sale of ships was offset by one time cost of EUR 1.5 million related to the charges of bondholders’ waiver allowing the Group to pay higher equity distributions in 2016.

The unaudited net profit for the second quarter of the 2016 financial year was EUR 9.8 million or EUR 0.015 per share compared to the net profit of EUR 28.5 million or EUR 0.043 per share in the same period last year.

In June 2016 the shareholders annual general meeting decided to pay a dividend of EUR 0.02 per share from financial year 2015 profits. The total dividend amount of EUR 13.4 million was paid out on 05 July 2016 (third quarter). In addition to dividend payment the annual general meeting decided the share capital reduction in amount of EUR 40.2 million or EUR 0.06 per share. According to the procedures set out in Commercial code and estimated time of the proceedings in Commercial Registry the share capital reduction payments to the shareholders will be made in December 2016.

The total liquidity, cash and unused credit facilities, at the end of the second quarter was EUR 123.6 million providing a strong financial position for sustainable operations. The Group had EUR 92.3 million in cash and equivalents and the total of unused credit lines were at EUR 31.3 million.

 

Q2 KEY FIGURES                                            

    2016
Apr-Jun
2015
Apr-Jun
Change
Revenue EUR million 245.2 253.9 -3.4%
Gross profit EUR million 48.3 62.4 -22.6%
Gross margin   19.7% 24.6%  
EBITDA EUR million 36.2 55.2 -34.5%
EBITDA margin   14.7% 21.7%  
Net profit for the period EUR million 9.8 28.5 -65.7%
Net profit margin adjusted   4.0% 11.2%  
         
Depreciation and amortization EUR million 19.4 19.9 -2.6%
Investments EUR million 18.7 14.9 25.5%
         
Weighted average number of ordinary shares outstanding 1 669,882,040 669,882,040 0.0%
Earnings per share EUR 0.01 0.04 -65.7%
         
Number of passengers   2,423,057 2,356,039 2.8%
Number of cargo units   84,392 78,659 7.3%
Average number of employees   7,281 6,903 5.5%
         
    30.06.2016 31.03.2016  
Total assets EUR million 1,567.4 1,554.8 0.8%
Interest-bearing liabilities EUR million 558.5 564.1 -1.0%
Net debt EUR million 466.2 472.4 -1.3%
Total equity EUR million 807.7 812.3 -0.6%
         
Equity ratio   51.5% 52.2%  
Net debt to EBITDA   2.9 2.7  
         
Number of ordinary shares outstanding 1 669,882,040 669,882,040 0.0%
Shareholders’ equity per share EUR 1.21 1.21 -0.6%
           

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.
Share numbers exclude own shares.

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(unaudited, in thousands of euros) 01.04.2016- 01.04.2015- 01.01.2016- 01.01.2015-
  30.06.2016 30.06.2015 30.06.2016 30.06.2015
         
Revenue (Note 3) 245,234 253,862 438,055 444,015
Cost of sales -196,972 -191,489 -363,315 -355,538
Gross profit 48,262 62,373 74,740 88,477
           
Sales and marketing expenses -18,303 -16,481 -36,595 -31,716
Administrative expenses -14,259 -11,603 -26,277 -23,318
Other operating income 1,073 1,362 1,573 1,485
Other operating expenses -12 -390 -28 -581
Result from operating activities 16,761 35,261 13,413 34,347
         
Finance income (Note 4) 1,766 1,621 4,362 7,297
Finance costs (Note 4) -8,413 -4,000 -19,686 -20,608
         
Profit/-loss before income tax 10,114 32,882 -1,911 21,036
           
Income tax -333 -4,350 -335 -5,850
           
Net profit/-loss for the period 9,781 28,532 -2,246 15,186
         
Other comprehensive income/-expense        
Items that may be reclassified to profit or loss        
Exchange differences on translating foreign operations -107 28 -165 -54
Other comprehensive income/-expense for the period -107 28 -165 -54
Total comprehensive income/-expense for the period 9,674 28,560 -2,411 15,132
         
Earnings per share (in EUR per share)        
  - basic (Note 5) 0.015 0.043 -0.003 0.023
  - diluted (Note 5) 0.015 0.043 -0.003 0.023

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(unaudited, in thousands of euros)

ASSETS 30.06.2016 31.12.2015
       
Current assets    
Cash and cash equivalents 92,275 81,976
Trade and other receivables 43,871 36,583
Prepayments 11,835 5,274
Income tax prepayment 1,426 1,224
Inventories 39,330 29,197
Total current assets 188,737 154,254
       
Non-current assets    
Investments in equity-accounted investees 350 350
Other financial assets 365 308
Deferred income tax assets 19,410 19,410
Investment property 300 300
Property, plant and equipment (Note 7) 1,304,994 1,311,418
Intangible assets (Note 8) 51,533 52,726
Total non-current assets 1,376,952 1,384,512
       
TOTAL ASSETS 1,565,689 1,538,766
       
       
LIABILITIES AND EQUITY    
     
Current liabilities    
Interest bearing loans and borrowings (Note 9) 122,148 81,889
Trade and other payables 101,354 88,480
Dividends (Note 12, 14) 13,398 0
Income tax liability 2,830 4,567
Deferred income 42,316 28,906
Total current liabilities 282,046 203,842
       
Non-current liabilities    
Interest bearing loans and borrowings (Note 9) 436,317 467,447
Derivatives (Note 6) 39,623 42,863
Other payables 0 192
Total non-current liabilities 475,940 510,502
TOTAL LIABILITIES 757,986 714,344
       
EQUITY    
Equity attributable to equity holders of the parent    
Share capital 404,290 404,290
Share premium 639 639
Reserves 66,962 65,083
Retained earnings 335,812 354,410
Total equity attributable to equity holders of the parent 807,703 824,422
TOTAL EQUITY 807,703 824,422
       
TOTAL LIABILITIES AND EQUITY 1,565,689 1,538,766

 

CONSOLIDATED CASH FLOW STATEMENT

(unaudited, in thousands of euros) 01.01.2016- 01.01.2015-
    30.06.2016 30.06.2015
Cash flows from operating activities    
Net profit/-loss for the period -2,246 15,186
Adjustments 54,141 59,282
Changes in receivables and prepayments related to operating activities -13,999 -10,917
Changes in inventories -10,133 891
Changes in liabilities related to operating activities 26,228 14,097
Income tax paid -2,138 -246
  51,853 78,293
Cash flow from/used in investing activities    
Purchase of property, plant and equipment and intangible assets (Notes 7, 8, 9) -31,325 -18,499
Proceeds from disposals of property, plant and equipment 121 25,001
Interest received 35 41
  -31,169 6,543
Cash flows used in financing activities    
Repayment of loans (Note 9) -35,458 -49,381
Change in overdraft (Note 9) 40,246 -2,644
Payment of finance lease liabilities (Note 9) -49 -40
Interest paid -12,944 -14,744
Payments for settlement of derivatives -2,180 -2,290
  -10,385 -69,099
       
TOTAL NET CASH FLOW 10,299 15,737
       
Cash and cash equivalents:    
- at the beginning of period 81,976 65,311
- increase (+) / decrease (-) 10,299 15,737
- at the end of period 92,275 81,048

 

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


Attachments

Interim 2016 Q2eng.pdf