Published: 2013-11-14 15:45:01 CET
Tallink Grupp
Interim report (Q1 and Q3)

Q3 results of the 2013 financial year

Tallinn, Estonia, 2013-11-14 15:45 CET (GLOBE NEWSWIRE) -- Q3 results of the 2013 financial year 

In the third quarter (1 July - 30 September) of the 2013 financial year AS Tallink Grupp and its subsidiaries’ (the Group) unaudited consolidated revenue amounted to EUR 278.4 million. The Group’s EBITDA amounted to EUR 72.5 million and the unaudited net profit for the third quarter was EUR 44.0 million.

The Group’s operations were affected by overall weak economic environment in the region. The countries which are the Group’s main markets are experiencing noticeable slowdown in their economies. The continuing decline of Finland economy is seen in the reported weak retail sales indicators and has also had impact to the Group’s passengers’ spending behaviour.

The Group carried a total of 2.7 million passengers in the third quarter which is 1.9% less compared to the same period last year. The number of cargo units transported amounted to 76.0 thousand, which is 10.5% more than in the same period last year due to some capacity and structural changes in the market when compared to the previous year. Growth in the number of passengers increased on the Estonia-Finland route by 2.3% and on the Latvia-Sweden route by 4.1%. The number of passengers decreased between the Finland-Sweden route by 9.6%, where the competition situation has changed and the Group has decreased its capacity.

Ticket sales continued to show increase, but passenger spending from restaurant and shop sales experienced some decline.

In the third quarter of the 2013 financial year the Group’s revenue was EUR 278.4 million which is a decrease by 1.4%. Gross profit amounted to EUR 79.8 million being EUR 5.3 million less than in the previous year. EBITDA amounted to EUR 72.5 million, which is EUR 4.4 million less compared to the same period last year.

Following the introduction of M/S Isabelle the third quarter result on the Stockholm-Riga route reached to highest ever EUR 4.7 million, an increase by 58.4% when compared to the last year same period. The nine months result of the route entered the positive territory.

The unaudited net profit for the third quarter was EUR 44.0 million or EUR 0.07 per share compared to the net profit of EUR 49.6 million or EUR 0.07 per share in the same period last year. The unaudited net profit for the first nine months was EUR 35.8 million, the same period last year was EUR 50.6 million. The strongest impact on the result came from the EUR 8.9 million dividend related tax expense in the second quarter.

The cash flow from operating activities amounted to EUR 59.2 million. Despite the slowdown in the operating result the Group was successful in generating higher cash flow from operating activities both in the third quarter and for the first nine months. The total liquidity, cash and unused credit facilities at the end of the third quarter were EUR 100 million providing a strong position for sustainable operations. At the end of the third quarter 2013 the Group had EUR 50.0 million in cash and equivalents and the total of unused credit lines were at EUR 50.0 million.

The Group’s net debt continued to decrease, amounting to EUR 758 million in the end of the third quarter.

Our customers have high expectations for the services the Group offers. The high customer satisfaction from cruise experience is an important strategic factor for us. Management has taken the aim to make our on-board offering and shopping environment even more attractive. The retail sector is a constantly developing area bringing along new concepts every day. In February the Group will launch the major refresh of the vessel Silja Serenade on the Stockholm-Helsinki route. The vessel will have a 50% expanded shopping area including a new Superstore, upgraded Grand Buffet concept and a new Italian restaurant. Several of the other public areas will get the facelift including the refurbishment of Commodore Class cabins and a refreshed SPA & Sauna area. The sister ship Silja Symphony will follow with similar approach in autumn 2014. An important part of our upcoming public areas development on-board our vessels is to advance our shops’ concepts for better shopping experience as well as a improved selection of products. In 2014 the Group plans to invest more than EUR 20 million in upgrading the vessels on the Helsinki-Stockholm route.

The management is not pleased with the results in the 2013 financial year. Due to the dividend related tax expense, adverse economic developments and the increased competition on Finland-Sweden routes the Group’s management foresees that the results for this year will not reach the previous year’s level. Improvements in product development are being made to increase the revenue generation but also cost reductions in some areas are processed in order to adapt with the changed economic environment.

Q3 KEY FIGURES   2013
July-September
2012
July-September
Change
Revenue EUR million 278.4 282.4 -1.4%
Gross profit EUR million 79.8 85.2 -6.3%
Gross margin (%)   28.7% 30.2%  
EBITDA EUR million 72.5 77.0 -5.7%
EBITDA margin (%)   26.1% 27.3%  
Net profit for the period EUR million 44.0 49.6 -11.1%
Net profit margin (%)   15.8% 17.6%  
         
Depreciation and amortization EUR million 18.5 17.7 4.5%
Investments EUR million 2.5 5.2 -52.7%
         
Weighted average number of ordinary shares outstanding 669 882 040 669 882 040  
Earnings per share EUR 0.07 0.07 -11.1%
         
Number of passengers   2 718 778 2 770 147 -1.9%
Number of cargo units   76 043 68 831 10.5%
Average number of employees   7 185 7 132 0.7%
         
    30.09.2013 30.06.2013  
Total assets EUR million 1 723.1 1 760.2 -2.1%
Interest-bearing liabilities EUR million 808.1 835.4 -3.3%
Net debt EUR million 758.1 767.3 -1.2%
Total equity EUR million 763.4 719.3 8.4%
         
Equity ratio (%)   44.3% 40.9%  
Net debt to EBITDA   4.8 4.7  
         
Number of ordinary shares outstanding1   669 882 040 669 882 040 0%
Shareholders’ equity per share EUR 1.14 1.09 4.8%
           

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 EUR) 01.07.2013- 01.07.2012- 01.01.2013- 01.01.2012-
  30.09.2013 30.09.2012 30.09.2013 30.09.2012
         
Revenue 278,391 282,441 718,001 721,052
Cost of sales -198,574 -197,290 -564,968 -559,833
Gross profit 79,817 85,151 153,033 161,219
           
Marketing expenses -15,926 -15,591 -49,642 -48,224
Administrative expenses -10,068 -10,561 -32,469 -33,455
Other income 277 347 1,085 853
Other expenses -12 -820 -141 -852
Results from operating activities 54,088 58,526 71,866 79,541
         
Finance income 4,577 1,382 15,790 2,534
Finance costs -14,642 -11,130 -42,965 -32,258
Profit from the sale of a subsidiary 0 783 0 783
           
Profit/-loss before income tax 44,023 49,561 44,691 50,600
           
Income tax 16 0 -8,903 0
           
Net profit/-loss for the period 44,039 49,561 35,788 50,600
         
Other comprehensive income/-expense        
Exchange differences on translating foreign operations 3 -116 80 -121
Other comprehensive income/-expense for the period 3 -116 80 -121
Total comprehensive income/-expense for the period 44,042 49,445 35,868 50,479
         
Profit/-loss attributable to:        
  Equity holders of the parent 44,039 49,561 35,788 50,600
           
Total comprehensive income/-expense attributable to:        
  Equity holders of the parent 44,042 49,445 35,868 50,479
         
Earnings per share (in EUR per share)        
  - basic 0.07 0.07 0.05 0.08
  - diluted 0.07 0.07 0.05 0.08

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(unaudited, in thousands of EUR)

ASSETS 30.09.2013 31.12.2012
       
Current assets    
Cash and cash equivalents 50,023 65,600
Trade and other receivables 46,726 42,555
Prepayments 15,346 5,151
Derivatives 501 0
Inventories 28,650 29,426
Total current assets 141,246 142,732
       
Non-current assets    
Investments in equity-accounted investees 245 245
Other financial assets 292 296
Deferred income tax assets 12,264 12,264
Investment property 300 300
Property, plant and equipment 1,511,140 1,526,995
Intangible assets 57,659 58,999
Total non-current assets 1,581,900 1,599,099
       
TOTAL ASSETS 1,723,146 1,741,831
       
       
LIABILITIES AND EQUITY    
     
Current liabilities    
Interest bearing loans and borrowings 87,321 103,685
Trade and other payables 95,793 92,988
Deferred income 27,445 25,458
Derivatives 28,285 22,102
Total current liabilities 238,844 244,233
       
Non-current liabilities    
Interest bearing loans and borrowings 720,782 736,699
Other liabilities 78 69
Total non-current liabilities 720,860 736,768
TOTAL LIABILITIES 959,704 981,001
       
EQUITY    
Equity attributable to equity holders of the parent    
Share capital 404,290 404,290
Share premium 639 639
Reserves 72,224 69,091
Retained earnings 286,289 286,810
Total equity attributable to equity holders of the parent 763,442 760,830
TOTAL EQUITY 763,442 760,830
       
TOTAL LIABILITIES AND EQUITY 1,723,146 1,741,831

CONSOLIDATED CASH FLOW STATEMENT

(unaudited, in thousands of EUR) 01.01.2013 - 01.01.2012-
    30.09.2013 30.09.2012
Cash flows from operating activities    
Net profit/-loss for the period 35,788 50,600
Adjustments 95,069 82,687
Changes in assets related to operating activities -13,352 -15,974
Changes in liabilities related to operating activities 2,720 1,297
Income tax paid -200 -11
  120,025 118,599
Cash flow used for investing activities    
Purchase of property, plant and equipment and intangible assets -38,332 -8,898
Proceeds from disposals of property, plant and equipment 270 47
Proceeds from subsidiaries 0 1,992
Payments for settlement of derivatives -3,374 -2,912
Interest received 17 236
  -41,419 -9,535
Cash flow from (+)/ used for (-) financing activities    
Proceeds from loans 24,000 0
Redemption of loans -168,230 -99,477
Proceeds from bonds 115,487 0
Repayment of finance lease liabilities -4 -51
Interest paid -22,472 -25,880
Payment of transaction costs related to loans -567 0
Dividends paid -33,494 0
Income tax on dividends paid -8,903 0
  -94,183 -125,408
       
TOTAL NET CASH FLOW -15,577 -16,344
       
Cash and cash equivalents:    
- at the beginning of period 65,600 75,421
- increase (+) / decrease (-) -15,577 -16,344
Cash and cash equivalents at the end of period 50,023 59,077

 

         Janek Stalmeister
         Juhatuse liige
         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


Interim 2013 Q3eng.pdf