Tallinn, 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
