Tallinn, 2017-08-10 08:50 CEST (GLOBE NEWSWIRE) -- AS Tallink Grupp Unaudited Consolidated Interim Report Q2 2017
In the second quarter (1 April – 30 June) of the 2017 financial year Tallink Grupp AS and its subsidiaries (the Group) carried 2.6 million passengers which is 6.8% more compared to the second quarter last year. The Group’s unaudited revenue for the second quarter increased by 6.0% to the total of EUR 259.9 million. Unaudited EBITDA for the second quarter increased by 35.1% to the total of EUR 48.9 million (EUR 36.2 million, Q2 2016) and unaudited net profit increased by 83.2% to the total of EUR 17.9 million (EUR 9.8 million, Q2 2016).
In the second quarter, the Group’s revenue and operating result was impacted by following operational factors:
- After the rerouting of ships in December 2016, the carriage capacity increased on number of operated routes;
- In the second quarter of 2017, one cruise ferry operated the Tallinn – Helsinki route cruise service compared to two cruise ferries in the same period last year;
- In financial year 2017 the Easter holidays seasonal traffic fell into the beginning of the second quarter, last year the holidays were in the first quarter.
Sales and segments
The Estonia-Finland routes second quarter revenue increased by 3.0% compared to same period last year, the increase is driven mainly by growth in the passenger number and cargo volume that was supported by added capacity. In the end of January, the new LNG fast ferry Megastar started operating the Tallink Shuttle service on the Tallinn-Helsinki route next to fast ferry Star and replaced fast ferry Superstar. The new ship accommodates approximately 40% more passengers and the car deck capacity is almost doubled compared to the replaced ship. The feedback on the new ship has been very positive from all customer groups and partners.
The Estonia-Finland segment result for the second quarter increased by 24.7% compared to the same period last year and amounted to EUR 19.8 million, the growth is derived mostly from the new Shuttle vessel Megastar. The segment result was supported by growth of passenger number, higher average revenue per passenger, increase of number of transported cargo units and lower operating expenses. Starting from February 2017 there is no charter hire cost from fast ferry Superstar.
The Finland-Sweden routes second quarter revenue increased by 4.8% compared to same period last year, the growth was supported by 7.1% higher passenger number on the routes. The number of cargo units transported increased by 2.4%. The segment second quarter result increased by EUR 6,4 million, compared to same period last year and amounted to EUR 9.4 million.
The Estonia-Sweden routes second quarter revenue increased by 5.6% compared to same period last year, the growth was supported by 6,8% higher passenger number on the routes. The number of cargo units transported increased by 2.8%. The segment result decreased by 12.5% in the second quarter and amounted to EUR 3.7 million compared to same period last year.
The Latvia-Sweden route second quarter revenue increased by 55.7% compared to same period last year and the number of cargo units transported increased by 59.3%. The second quarter segment result decreased to EUR -0.6 million, starting from December 2016 two ships are operating on the route compared to one ship in the second quarter last year.
Earnings
In the second quarter of the 2017 financial year the Group’s gross profit increased by EUR 11.0 million compared to the same period last year and amounted to EUR 59.3 million. The second quarter EBITDA increased by EUR 12.7 million and was EUR 48.9 million. The second quarter growth was driven by higher passenger number from holiday season effects and added capacity, more optimal operating cost on Tallinn – Helsinki route with three vessels but the result was also impacted by higher fuel cost compared to same period last year.
The net finance costs decreased by EUR 1.4 million compared to the second quarter last year, there are EUR 1.7 million lower interest cost and total EUR 0.3 million lower losses from exchange rate differences and cross currency and interest derivatives revaluations compared to same period last year.
The income tax on dividends in amount of EUR 4.1 million was recorded in the second quarter costs, compared to EUR 0.3 million in same period last year.
The Groups pretax profit for the second quarter more than doubled compared to the same period last year and amounted to EUR 22.0 million. The unaudited net profit for the second quarter of the 2017 financial year was EUR 17.9 million or EUR 0.027 per share compared to the net profit of EUR 9.8 million or EUR 0.015 per share in the same period last year.
Results of the first 6 months of 2017
In the first 6 months (1 January – 30 June) of the 2017 financial year the Group carried 4.5 million passengers which is 3.4% more compared to the same period last year. The Group’s unaudited revenue for the period increased by 3.0% to the total of EUR 451.4 million. Unaudited EBITDA for the first 6 months was EUR 54.1 million (EUR 52.4 million, 6M 2016) and unaudited net loss was EUR 2.4 million (EUR 2.2 million, 6M 2016 net loss).
The financial result of the first 6 months of 2017 was impacted by the scheduled maintenances of five cruise ferries in the first quarter of 2017 and carriage capacity increase on number of routes from the rerouting of vessels in December 2016. In the first half of the year the competition on the maritime traffic in between Estonia and Finland has increased which has put pressure on ticket prices.
Financial position
In the second quarter the Group’s net debt decreased by EUR 37.2 million to a total of EUR 653.7 million. The net debt to EBITDA ratio was 4.3 at the end of the second quarter.
The total liquidity, cash and unused credit facilities, at the end of the second quarter was EUR 92.2 million (EUR 123.6 million, 30 June 2016) providing a strong financial position for sustainable operations. The Group had EUR 82.0 million (EUR 92.3 million, 30 June 2016) in cash and equivalents and the total of unused credit lines were at EUR 10.2 million (EUR 31.3 million, 30 June 2016).
KEY FIGURES OF THE Q2 2017
For the period | Q2 2017 | Q2 2016 | Change % |
Revenue (million euros) | 259.9 | 245.2 | 6.0% |
Gross profit (million euros) | 59.3 | 48.3 | 22.8% |
Net profit for the period (million euros) | 17.9 | 9.8 | 83.2% |
EBITDA (million euros) | 48.9 | 36.2 | 35.1% |
Depreciation and amortisation (million euros) | 21.5 | 19.4 | 11.1% |
Investments (million euros) | 5.3 | 18.7 | -71.7% |
Weighted average number of ordinary shares outstanding1 | 669 882 040 | 669 882 040 | 0.0% |
Earnings per share | 0.027 | 0.015 | 83.2% |
Number of passengers | 2 587 033 | 2 423 057 | 6.8% |
Number of cargo units | 91 819 | 84 392 | 8.8% |
Average number of employees | 7 582 | 7 281 | 4.1% |
As at | 30.06.17 | 31.03.17 | Change % |
Total assets (million euros) | 1 739.0 | 1 730.2 | 0.5% |
Total liabilities (million euros) | 948.0 | 937.1 | 1.2% |
Interest-bearing liabilities (million euros) | 735.7 | 763.2 | -3.6% |
Net debt (million euros) | 653.7 | 690.9 | -5.4% |
Net debt to EBITDA | 4.33 | 4.99 | -13.2% |
Total equity (million euros) | 791.1 | 793.1 | -0.3% |
Equity ratio (%) | 45.5% | 45.8% | |
Number of ordinary shares outstanding1 | 669 882 040 | 669 882 040 | 0.0% |
Shareholders’ equity per share | 1.18 | 1.18 | -0.3% |
Ratios | Q2 2017 | Q2 2016 | |
Gross margin (%) | 22.8% | 19.7% | |
EBITDA margin (%) | 18.8% | 14.7% | |
Net profit margin (%) | 6.9% | 4.0% |
EBITDA: Earnings before net financial items, share of profit of equity accounted investees, taxes, depreciation and amortisation
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 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Unaudited, in thousands of EUR | Q2 2017 | Q2 2016 | 6M 2017 | 6M 2016 |
Revenue (Note 3) | 259 858 | 245 234 | 451 406 | 438 055 |
Cost of sales | -200 579 | -196 972 | -377 257 | -363 315 |
Gross profit | 59 279 | 48 262 | 74 149 | 74 740 |
Sales and marketing expenses | -19 334 | -18 303 | -37 114 | -36 595 |
Administrative expenses | -12 844 | -14 259 | -25 454 | -26 277 |
Other operating income | 213 | 1 073 | 336 | 1 573 |
Other operating expenses | -9 | -12 | -144 | -28 |
Result from operating activities | 27 305 | 16 761 | 11 773 | 13 413 |
Finance income (Note 4) | 5 417 | 1 766 | 7 908 | 4 362 |
Finance costs (Note 4) | -10 696 | -8 413 | -17 969 | -19 686 |
Profit/-loss before income tax | 22 026 | 10 114 | 1 712 | -1 911 |
Income tax | -4 112 | -333 | -4 126 | -335 |
Net profit/-loss for the period | 17 914 | 9 781 | -2 414 | -2 246 |
Other comprehensive income/-expense | ||||
Exchange differences on translating foreign operations | 629 | -107 | 18 | -165 |
Other comprehensive income for the period | 629 | -107 | 18 | -165 |
Total comprehensive income/-expense for the period | 18 543 | 9 674 | -2 396 | -2 411 |
Basic and diluted earnings per share (in EUR per share, note 5) | 0,027 | 0,015 | -0,004 | -0,003 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited, in thousands of EUR | 30.06.2017 | 31.12.2016 |
ASSETS | ||
Cash and cash equivalents | 81 959 | 78 773 |
Trade and other receivables | 49 412 | 38 674 |
Prepayments | 14 274 | 7 926 |
Income tax prepayments | 0 | 91 |
Inventories | 51 623 | 38 719 |
Current assets | 197 268 | 164 183 |
Investments in equity-accounted investees | 363 | 363 |
Other financial assets | 354 | 348 |
Deferred income tax assets | 18 795 | 18 791 |
Investment property | 300 | 300 |
Property, plant and equipment (Note 7) | 1 471 712 | 1 304 897 |
Intangible assets (Note 8) | 50 236 | 50 127 |
Non-current assets | 1 541 760 | 1 374 826 |
TOTAL ASSETS | 1 739 028 | 1 539 009 |
LIABILITIES AND EQUITY | ||
Interest-bearing loans and borrowings (Note 9) | 152 803 | 106 112 |
Trade and other payables | 109 410 | 103 280 |
Dividends payable to shareholders | 20 100 | 4 |
Income tax liability | 4 087 | 10 |
Deferred income | 44 935 | 30 895 |
Current liabilities | 331 335 | 240 301 |
Interest-bearing loans and borrowings (Note 9) | 582 880 | 452 793 |
Derivatives (Note 6) | 33 749 | 32 359 |
Non-current liabilities | 616 629 | 485 152 |
Total liabilities | 947 964 | 725 453 |
Share capital (Note 10) | 361 736 | 361 736 |
Share premium | 639 | 639 |
Reserves | 70 998 | 68 774 |
Retained earnings | 357 691 | 382 407 |
Equity attributable to equity holders of the Parent | 791 064 | 813 556 |
Equity | 791 064 | 813 556 |
TOTAL LIABILITIES AND EQUITY | 1 739 028 | 1 539 009 |
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited, in thousands of EUR | 6M 2017 | 6M 2016 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net profit/-loss for the period | -2 414 | -2 246 |
Adjustments | 56 637 | 54 141 |
Changes in: | ||
Receivables and prepayments related to operating activities | -18 542 | -13 999 |
Inventories | -12 904 | -10 133 |
Liabilities related to operating activities | 18 511 | 26 228 |
Changes in assets and liabilities | -12 935 | 2 096 |
Cash generated from operating activities | 41 288 | 53 991 |
Income tax paid | 40 | -2 138 |
NET CASH FROM OPERATING ACTIVITIES | 41 328 | 51 853 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant, equipment and intangible assets (Notes 7, 8, 9) | -209 411 | -31 325 |
Proceeds from disposals of property, plant, equipment | 189 | 121 |
Interest received | 1 | 35 |
NET CASH USED IN INVESTING ACTIVITIES | -209 221 | -31 169 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from loans | 184 000 | 0 |
Repayment of loans (Note 9) | -26 050 | -35 458 |
Change in overdraft (Note 9) | 24 682 | 40 246 |
Payments for settlement of derivatives | -1 819 | -2 180 |
Payment of finance lease liabilities (Note 9) | -52 | -49 |
Interest paid | -9 466 | -12 944 |
Payment of transaction costs related to loans | -216 | 0 |
NET CASH USED IN FINANCING ACTIVITIES | 171 079 | -10 385 |
TOTAL NET CASH FLOW | 3 186 | 10 299 |
Cash and cash equivalents at the beginning of period | 78 773 | 81 976 |
Increase / -decrease in cash and cash equivalents | 3 186 | 10 299 |
Cash and cash equivalents at the end of period | 81 959 | 92 275 |
Veiko Haavapuu
Finance Director
AS Tallink Grupp
Sadama 5/7
10111 Tallinn, Estonia
Tel. +372 640 9914
E-mail veiko.haavapuu@tallink.ee