Q1 results of the 2010/2011 financial year

Tallinn, 2011-01-17 16:58 CET (GLOBE NEWSWIRE) -- Q1 results of the 2010/2011 financial year

Passenger volume transported by the Group’s (AS Tallink Grupp and its subsidiaries’) vessels in the first quarter (01.09.2010-30.11.2010) increased by 10% to 1.99 million passengers compared to the first quarter of the previous financial year. The number of transported cargo units increased more than 12% in the same period.

The Group’s unaudited consolidated revenue in the first quarter of the 2010/2011 financial year was EEK 3 177 million (EUR 203 million) which is nearly EEK 340 million (EUR 22 million) or 12% higher compared to the first quarter of the previous financial year.

The noticeable increase in the Group revenues was influenced by the stronger passenger and cargo volumes. The Group was able to increase the passenger related revenues (ticket, shops & restaurants sales) by EEK 268 million (EUR 17 million) compared to the last year. The respective revenue increase per passenger was 1.6%. It shall be noted that the volume and revenue growth was higher in the Estonia-Finland, Estonia-Sweden and Latvia-Sweden routes where the margins on the onboard spending are not as high as in the Finland-Sweden routes where the volume growth in the first quarter was 2% and revenue growth 5%.

Compared to the first quarter of the previous financial year the Group’s gross profit in the first quarter of the 2010/2011 financial year increased by EEK 45 million (EUR 2.9 million) to a total of EEK 556 million (EUR 35.5 million). The Group’s EBITDA amounted to EEK 430 million (EUR 27.5 million) an increase of EEK 22 million (EUR 0.5 million) and the net profit was EEK 18 million (EUR 1.1 million) an increase of EEK 37 million (EUR 2.3 million) year on year.

 One of the main focus areas in the Group’s operations during the first quarter was to increase the sales and marketing activities in home markets. Hence a more aggressive advertising approach was taken whereby the advertisement spending was also increased. The positive result of these planned actions can be noticed in the strongly increased passenger volumes in the first quarter. The growth is visible and continues also in the beginning of the second quarter.

 In the first quarter the Group’s investments amounted to EEK 56 million (EUR 3.6 million) mainly related to the upgrading works of three cruise ferries Romantika, Silja Festival and Silja Serenade that were in the scheduled dry dock during the period. At the same time many of the recurring maintenance works were also done which had increased cost impact on those vessels in the first quarter. During the docking of the cruise ferry Silja Serenade her operations in the Finland-Sweden route were replaced with the cruise ferry Silja Europa which in turn was replaced by the cruise ferry Baltic Queen from Estonia-Sweden route. By the switch of the vessels the Group was able to maintain the passenger volume and to provide the passengers with a great new experience of the different vessels on the Finland-Sweden routes. From the economical point the rerouting of the vessels was beneficial, but given the additional maintenance costs the profit conversion was at the lower margin than compared to the normal operation on that route.

 The Swedish krona has strengthened noticeably against the euro. This is good for the revenues which the Group is receiving from the Swedish market area but the stronger exchange rate increases also the Swedish crew and office costs in euro terms. The fuel costs in the first quarter of the 2010/2011 were EEK 484 million (EUR 31 million) which is EEK 78 million (EUR 5 million) higher compared to the first quarter of the previous financial year.

 The Group’s first quarter result meets the management expectations. Several planned activities and structural changes between the routes had some influence to the earnings. The Group’s net debt decreased to below the EUR 1 billion level. In the management opinion the Group’s development in the 2010/2011 financial year has started off well and the Group is on the track to improve the results in the current financial year.

Net profit margin – net profit / net sales;

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.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 (unaudited, in thousands of EEK)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 (unaudited, in thousands of EUR)

CONSOLIDATED CASH FLOW STATEMENT 

CONSOLIDATED CASH FLOW STATEMENT

         Janek Stalmeister
         Financial Director
         AS Tallink Grupp
         Tel. +372 6409 800
         e-mail: janek.stalmeister@tallink.ee