OREANDA-NEWS. July 15, 2011. The revenue of AS Tallink Grupp and its subsidiaries’ (the Group) continued to grow in the third quarter of 2010/2011 financial year (01.03.2011-31.05.2011) in support of the improved revenue per passenger and higher cargo sales from increased cargo units. At the same time the increase was noticeable also in the costs. The quarter started in harsh ice conditions in March and the significantly risen fuel price was dominant throughout the whole quarter.

 The Group transported 2 098 356 passengers in the third quarter of 2010/2011 financial year which is 2.7% less than in the same period of the previous financial year as a consequence of different campaigns and tactics in the product offering between the months of second and third quarter. On a cumulative basis the Group has transported 9% more passengers during the nine months of the current financial year compared to the same period of previous financial year. The fourth quarter high season has also started off with a strong 10% year on year increase in the passenger volume.

 In the third quarter the positive development continued in the cargo transportation. Derived mainly from the growing economies in the region the Group’s cargo units rose to 76 366 which is 11% more than year ago.

 In the third quarter of the 2010/2011 financial year the Group’s unaudited consolidated revenue was EUR 209.5 million which is EUR 7.1 million or 3.5% more than in the third quarter of the previous financial year. Cargo sales increased by EUR 4.2 million or 17.1% and ticket sales by EUR 2.6 million or 5.2% compared to the third quarter of the previous financial year. Ticket revenue per passenger improved by EUR 1.9 and restaurant and shop sales per passenger by EUR 1.1 which are respectively 8.1% and 2.0% better than year ago.

However, the increase in the revenue in the third quarter did not outperform the increase in the costs and the Group’s earnings were lower than year ago. The largest impact to the cost development came from the increased fuel price. The Group’s ship fuel is priced in relation to the market price of 1% Fuel Oil. On average the  fuel oil price in the third quarter was 33% higher than last year.

 In the third quarter of 2010/2011 financial year the Group’s fuel cost increased by EUR 10.3 million compared to the third quarter of previous financial year. Fuel surcharge was added to the passenger tickets starting from June 2011 which together with the existing fuel surcharge system for the cargo is estimated to provide higher compensation to the fuel cost increase in the fourth quarter and onwards.