OREANDA-NEWS. AS Tallink Grupp Unaudited Consolidated Interim Report Q1 2015.

In the first quarter (1 January- 31 March) of the 2015 financial year AS Tallink Grupp and its subsidiaries’ (the Group) carried nearly 1.8 million passengers which is 5.9% less compared to the same period last year.  The Group’s unaudited revenue for the first quarter of 2015 increased by EUR 1.9 million or 1.0% year on year to the total of EUR 190.2 million, EBITDA increased by EUR 15.0 million or 335.0% to the total of EUR 19.5 million, compared to the same period last year. The Group made various changes to the operations during the past year and these affected the first quarter with decreased passenger volumes but increased revenue and profitability. The reduction of operating costs from the measures taken has the highest effect to the first quarter profitability, which is also the low season.

In the first quarter the Estonia-Finland route showed positive developments with revenue increasing by 2.7% driven by a 21.3% growth in cargo units. The increase to the cargo volume was partly from Sea Wind switching from the Finland-Sweden routes to the Estonia-Finland route. The Estonia-Sweden route, where capacity is lower than last year, experienced a 9.9% decrease in passengers and a 10.4% decrease in cargo volumes. The Latvia-Sweden route showed a decline with passenger’s numbers decreasing by 41.2%, cargo units transported decreased by 59.6%, passenger vehicles transported decreased by 33.0% and the sales decreased by 39.4%. The decline in passenger and cargo volumes on the Latvia-Sweden route is due to Isabelle operating as the only vessel on the route since the beginning of August 2014. Throughout the first quarter price pressure from competitors remained visible on all routes. The passenger volumes have been affected by the drop of Russian passengers since the second quarter last year and has continued to this date.

In the first quarter altogether 6 vessels were chartered out. Due to the increased number of chartered vessels the revenue from charters increased by EUR 7.3 million or 85.9% to the total of EUR 15.7 million. Two of the vessels Silja Festival and Regina Baltic are to be sold in the second quarter of the 2015 financial year.

The upgrades of the public areas and improvements to restaurant and shop concept throughout the fleet combined with the operational changes have resulted in a 3.5% increase in on-board revenue per passenger. Due to the changes in operations the segment result improved on all segments and was EUR 14.9 million higher than in the same period last year.

In the first quarter of the 2015 financial year the Group’s gross profit amounted to EUR 26.1 million and EBITDA to EUR 19.5 million being respectively EUR 14.3 million and EUR 15.0 million more compared to the same period last year. The increase in the Group’s results is mainly attributed to the decreased costs related to operations.

The unaudited net loss for the first quarter of the 2015 financial year was EUR 13.3 million or EUR 0.02 per share compared to the net loss of EUR 23.4 million or EUR 0.03 per share in the same period last year.

Cash flow from operations increased by EUR 19.2 million when compared to the same period last year. The total liquidity, cash and unused credit facilities at the end of the first quarter were EUR 68.8 million providing a strong position for sustainable operations. At the end of the first quarter 2015 the Group had EUR 66.3 million in cash and equivalents and the total of unused credit lines were at EUR 2.5 million.

 

Q1 KEY FIGURES   2015
Jan-Mar
2014
Jan-Mar
Change
Revenue EUR million 190.2 188.2 1.0%
Gross profit EUR million 26.1 11.8 121.5%
Gross margin (%)   13.7% 6.3%  
EBITDA EUR million 19.5 4.5 335.0%
EBITDA margin (%)   10.2% 2.4%  
Net profit for the period EUR million -13.3 -23.4 42.9%
Net profit margin (%)   -7.0% -12.4%  
         
Depreciation and amortization EUR million 20.4 19.7 3.4%
Investments EUR million 3.6 14.1 74.4%
         
Weighted average number of ordinary shares outstanding 669 882 040 669 882 040  
Earnings per share EUR -0.02 -0.03 42.9%
         
Number of passengers   1 793 414 1 905 555 -5.9%
Number of cargo units   75 172 76 791 -2.1%
Average number of employees   6 642 6 867 -3.3%
         
    31.03.2015 31.12.2014  
Total assets EUR million 1 674.5 1 685.6 -0.7%
Interest-bearing liabilities EUR million 742.9 743.4 -0.1%
Net debt EUR million 676.6 678.1 -0.2%
Total equity EUR million 764.9 778.3 -1.7%
         
Equity ratio (%)   46.2% 45.7%  
Net debt to EBITDA   4.1 4.5  
         
Number of ordinary shares outstanding1   669 882 040 669 882 040 0%
Shareholders’ equity per share EUR 1.14 1.16 -1.7%
           

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 euros)     01.01.2015- 01.01.2014-
      31.03.2015 31.03.2014
         
Revenue     190,153 188,206
Cost of sales     -164,049 -176,419
Gross profit     26,104 11,787
           
Marketing expenses     -15,235 -15,798
Administrative expenses     -11,715 -11,389
Other income     123 213
Other expenses     -191 -48
Result from operating activities     -914 -15,235
         
Finance income     5,676 3,316
Finance costs     -16,608 -11,445
           
Profit/-loss before income tax     -11,846 -23,364
           
Income tax     -1,500 -10
           
Net profit/-loss for the period     -13,346 -23,374
         
Other comprehensive income/-expense        
Items that may be reclassified to profit or loss        
Exchange differences on translating foreign operations     -82 59
Other comprehensive income/-expense for the period     -82 59
Total comprehensive income/-expense for the period     -13,428 -23,315
         
Earnings per share (in EUR per share)        
  - basic     -0.020 -0.035
  - diluted     -0.020 -0.035

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(unaudited, in thousands of euros)

ASSETS 31.03.2015 31.12.2014
       
Current assets    
Cash and cash equivalents 66,276 65,311
Trade and other receivables 38,333 38,210
Prepayments 12,497 5,448
Inventories 28,787 31,315
Total current assets 145,893 140,284
       
Non-current assets    
Investments in equity-accounted investees 286 286
Other financial assets 331 252
Deferred income tax assets 21,338 21,338
Investment property 300 300
Property, plant and equipment 1,452,130 1,467,964
Intangible assets 54,247 55,174
Total non-current assets 1,528,632 1,545,314
       
TOTAL ASSETS 1,674,525 1,685,598
       
       
LIABILITIES AND EQUITY    
     
Current liabilities    
Interest bearing loans and borrowings 159,899 149,850
Trade and other payables 89,187 91,236
Income tax liability 2,800 1,300
Deferred income 34,723 29,408
Derivatives 39,959 41,982
Total current liabilities 326,568 313,776
       
Non-current liabilities    
Interest bearing loans and borrowings 583,019 593,532
Total non-current liabilities 583,019 593,532
TOTAL LIABILITIES 909,587 907,308
       
EQUITY    
Equity attributable to equity holders of the parent    
Share capital 404,290 404,290
Share premium 639 639
Reserves 70,123 70,129
Retained earnings 289,886 303,232
Total equity attributable to equity holders of the parent 764,938 778,290
TOTAL EQUITY 764,938 778,290
       
TOTAL LIABILITIES AND EQUITY 1,674,525 1,685,598

 

 

 

CONSOLIDATED CASH FLOW STATEMENT

 

(unaudited, in thousands of euros) 01.01.2015 - 01.01.2014-
    31.03.2015 31.03.2014
Cash flows from operating activities    
Net profit/-loss for the period -13,346 -23,374
Adjustments 33,028 28,461
Changes in receivables and prepayments related to operating activities -4,811 -8,512
Changes in inventories 2,528 3,302
Changes in liabilities related to operating activities 336 -1,391
Income tax paid -33 -15
  17,702 -1,529
Cash flow used in investing activities    
Purchase of property, plant and equipment and intangible assets -3,612 -14,121
Proceeds from disposals of property, plant and equipment 12 97
Interest received 22 4
  -3,578 -14,020
Cash flow used in financing activities    
Repayment of loans -15,024 -15,024
Change in overdraft 10,049 30,003
Payment of finance lease liabilities -20 -70
Interest paid -6,745 -7,783
Payments for settlement of derivatives -1,419 -1,021
  -13,159 6,105
       
TOTAL NET CASH FLOW 965 -9,444
       
Cash and cash equivalents:    
- at the beginning of period 65,311 72,012
- increase (+) / decrease (-) 965 -9,444
- at the end of period 66,276 62,568