Tallinn, 2016-08-11 08:50 CEST (GLOBE NEWSWIRE) -- AS Tallink Grupp Unaudited Consolidated Interim Report Q2 2016
In the second quarter (1 April - 30 June) of the 2016 financial year AS Tallink Grupp and its subsidiaries’ (the Group) carried 2.4 million passengers which is 2.8% more compared to the second quarter last year. The number of cargo units transported increased by 7.3% and the number of passenger vehicles transported increased by 3.8% compared to same period as last year.
The Group’s unaudited consolidated revenue for the second quarter was EUR 245.2 million, which is 3.4% less compared to same period last year. The Group’s unaudited EBITDA for the second quarter amounted to EUR 36.2 million compared to EUR 55.2 million last year and unaudited net profit was EUR 9.8 million compared to EUR 28.5 million in same period last year.
In the second quarter the revenue of core operations increased from higher on-board sales which was supported by the larger number of passengers travelling with the Group’s operated ships. The second quarter total revenue and operating result were lower compared to the same period last year mainly due to less revenue from chartering related to the sale of vessels Regina Baltica and Silja Festival and termination of cruise ferry Silja Europa charter. The fast ferry Superstar sale and charter back transaction affects the result of the current financial year. As a result of these operational changes, in the second quarter there are lower amortization and interest costs but higher operating costs compared to same period last year.
In expectation of the new LNG fast ferry Megastar to the market next year, the Group brought the cruise ferry Silja Europa to Tallinn-Helsinki route cruise service in March 2016. This operational change has enabled the Group to increase its market share on the route by 2% to 57%, compared to the second quarter last year. The Estonia-Finland routes second quarter revenue increased by 3.4% compared to same period last year. The increase is driven mainly by growth in the passenger number and cargo volume from the added capacity, compared to last year. The Estonia-Finland segment result for the second quarter was lower compared to the same period last year due to the cost of charter of the fast ferry Superstar, lower profitability of cruise ferry Silja Europa and scheduled maintenance of cruise ferry Baltic Queen in the second quarter.
The Finland-Sweden routes second quarter revenue decreased by 3.7%, compared to same period last year. Fewer passengers travelled on the routes compared to same period last year due to the spread of the noro virus in the beginning of June 2016. However the Group’s market share increased by 1% to 53%, as there was more departures compared to second quarter last year. The number of cargo units transported on Finland-Sweden routes increased by 6.7% in the second quarter.
The Estonia-Sweden route revenue increase of 7.1% was mainly driven by higher on-board sales and higher cargo volume. The Latvia-Sweden route showed slightly higher revenue compared with the second quarter last year. Driven by the higher revenue, the second quarter segment result improved for both routes.
In the second quarter the Group’s total restaurants and shop sales increased by EUR 3.6 million or 2.7%, compared to the same period last year. The sales growth is supported mainly by the higher number of passengers travelling with the Group’s operated ships. Throughout the second quarter there was a price pressure from competition on all routes. Despite the increase in passenger number the average ticket price per passenger was lower and the total revenue from the ticket sale is on level with the second quarter last year.
The revenue from the leases of vessels and other revenues related to the leases has reduced total by EUR 11.8 million in the second quarter due to fewer ships are chartered out, compared to the same period last year.
In the second quarter of the 2016 financial year the Group’s gross profit decreased by 22.6% and amounted to EUR 48.3 million, compared to the same period last year, EBITDA decreased by EUR 19.0 million to the total of EUR 36.2 million. The second quarter profitability was impacted by lower revenue due to the change in revenue structure; by lower total fuel cost but also higher marketing costs, cost of charter of the fast ferry Superstar and higher ships operating costs.
In the second quarter, the depreciation and amortization cost reduced by EUR 0.5 mainly due to the sale of three vessels in 2015.
In the second quarter the Group’s net debt decreased by EUR 6.2 million to a total of EUR 466.2 million and the net debt to EBITDA ratio was a solid 2.9 at the end of second quarter.
The total finance costs increased by EUR 4.3 million mainly from revaluation of cross currency and interest derivatives. The lower interest cost from regular repayment of loans and also repayment of loans related to sale of ships was offset by one time cost of EUR 1.5 million related to the charges of bondholders’ waiver allowing the Group to pay higher equity distributions in 2016.
The unaudited net profit for the second quarter of the 2016 financial year was EUR 9.8 million or EUR 0.015 per share compared to the net profit of EUR 28.5 million or EUR 0.043 per share in the same period last year.
In June 2016 the shareholders annual general meeting decided to pay a dividend of EUR 0.02 per share from financial year 2015 profits. The total dividend amount of EUR 13.4 million was paid out on 05 July 2016 (third quarter). In addition to dividend payment the annual general meeting decided the share capital reduction in amount of EUR 40.2 million or EUR 0.06 per share. According to the procedures set out in Commercial code and estimated time of the proceedings in Commercial Registry the share capital reduction payments to the shareholders will be made in December 2016.
The total liquidity, cash and unused credit facilities, at the end of the second quarter was EUR 123.6 million providing a strong financial position for sustainable operations. The Group had EUR 92.3 million in cash and equivalents and the total of unused credit lines were at EUR 31.3 million.
Q2 KEY FIGURES
| 2016 Apr-Jun | 2015 Apr-Jun | Change | |||
| Revenue | EUR million | 245.2 | 253.9 | -3.4% | |
| Gross profit | EUR million | 48.3 | 62.4 | -22.6% | |
| Gross margin | 19.7% | 24.6% | |||
| EBITDA | EUR million | 36.2 | 55.2 | -34.5% | |
| EBITDA margin | 14.7% | 21.7% | |||
| Net profit for the period | EUR million | 9.8 | 28.5 | -65.7% | |
| Net profit margin adjusted | 4.0% | 11.2% | |||
| Depreciation and amortization | EUR million | 19.4 | 19.9 | -2.6% | |
| Investments | EUR million | 18.7 | 14.9 | 25.5% | |
| Weighted average number of ordinary shares outstanding 1 | 669,882,040 | 669,882,040 | 0.0% | ||
| Earnings per share | EUR | 0.01 | 0.04 | -65.7% | |
| Number of passengers | 2,423,057 | 2,356,039 | 2.8% | ||
| Number of cargo units | 84,392 | 78,659 | 7.3% | ||
| Average number of employees | 7,281 | 6,903 | 5.5% | ||
| 30.06.2016 | 31.03.2016 | ||||
| Total assets | EUR million | 1,567.4 | 1,554.8 | 0.8% | |
| Interest-bearing liabilities | EUR million | 558.5 | 564.1 | -1.0% | |
| Net debt | EUR million | 466.2 | 472.4 | -1.3% | |
| Total equity | EUR million | 807.7 | 812.3 | -0.6% | |
| Equity ratio | 51.5% | 52.2% | |||
| Net debt to EBITDA | 2.9 | 2.7 | |||
| Number of ordinary shares outstanding 1 | 669,882,040 | 669,882,040 | 0.0% | ||
| Shareholders’ equity per share | EUR | 1.21 | 1.21 | -0.6% | |
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) | 01.04.2016- | 01.04.2015- | 01.01.2016- | 01.01.2015- | |
| 30.06.2016 | 30.06.2015 | 30.06.2016 | 30.06.2015 | ||
| Revenue (Note 3) | 245,234 | 253,862 | 438,055 | 444,015 | |
| Cost of sales | -196,972 | -191,489 | -363,315 | -355,538 | |
| Gross profit | 48,262 | 62,373 | 74,740 | 88,477 | |
| Sales and marketing expenses | -18,303 | -16,481 | -36,595 | -31,716 | |
| Administrative expenses | -14,259 | -11,603 | -26,277 | -23,318 | |
| Other operating income | 1,073 | 1,362 | 1,573 | 1,485 | |
| Other operating expenses | -12 | -390 | -28 | -581 | |
| Result from operating activities | 16,761 | 35,261 | 13,413 | 34,347 | |
| Finance income (Note 4) | 1,766 | 1,621 | 4,362 | 7,297 | |
| Finance costs (Note 4) | -8,413 | -4,000 | -19,686 | -20,608 | |
| Profit/-loss before income tax | 10,114 | 32,882 | -1,911 | 21,036 | |
| Income tax | -333 | -4,350 | -335 | -5,850 | |
| Net profit/-loss for the period | 9,781 | 28,532 | -2,246 | 15,186 | |
| Other comprehensive income/-expense | |||||
| Items that may be reclassified to profit or loss | |||||
| Exchange differences on translating foreign operations | -107 | 28 | -165 | -54 | |
| Other comprehensive income/-expense for the period | -107 | 28 | -165 | -54 | |
| Total comprehensive income/-expense for the period | 9,674 | 28,560 | -2,411 | 15,132 | |
| Earnings per share (in EUR per share) | |||||
| - basic (Note 5) | 0.015 | 0.043 | -0.003 | 0.023 | |
| - diluted (Note 5) | 0.015 | 0.043 | -0.003 | 0.023 | |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of euros)
| ASSETS | 30.06.2016 | 31.12.2015 | |
| Current assets | |||
| Cash and cash equivalents | 92,275 | 81,976 | |
| Trade and other receivables | 43,871 | 36,583 | |
| Prepayments | 11,835 | 5,274 | |
| Income tax prepayment | 1,426 | 1,224 | |
| Inventories | 39,330 | 29,197 | |
| Total current assets | 188,737 | 154,254 | |
| Non-current assets | |||
| Investments in equity-accounted investees | 350 | 350 | |
| Other financial assets | 365 | 308 | |
| Deferred income tax assets | 19,410 | 19,410 | |
| Investment property | 300 | 300 | |
| Property, plant and equipment (Note 7) | 1,304,994 | 1,311,418 | |
| Intangible assets (Note 8) | 51,533 | 52,726 | |
| Total non-current assets | 1,376,952 | 1,384,512 | |
| TOTAL ASSETS | 1,565,689 | 1,538,766 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Interest bearing loans and borrowings (Note 9) | 122,148 | 81,889 | |
| Trade and other payables | 101,354 | 88,480 | |
| Dividends (Note 12, 14) | 13,398 | 0 | |
| Income tax liability | 2,830 | 4,567 | |
| Deferred income | 42,316 | 28,906 | |
| Total current liabilities | 282,046 | 203,842 | |
| Non-current liabilities | |||
| Interest bearing loans and borrowings (Note 9) | 436,317 | 467,447 | |
| Derivatives (Note 6) | 39,623 | 42,863 | |
| Other payables | 0 | 192 | |
| Total non-current liabilities | 475,940 | 510,502 | |
| TOTAL LIABILITIES | 757,986 | 714,344 | |
| EQUITY | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 404,290 | 404,290 | |
| Share premium | 639 | 639 | |
| Reserves | 66,962 | 65,083 | |
| Retained earnings | 335,812 | 354,410 | |
| Total equity attributable to equity holders of the parent | 807,703 | 824,422 | |
| TOTAL EQUITY | 807,703 | 824,422 | |
| TOTAL LIABILITIES AND EQUITY | 1,565,689 | 1,538,766 | |
CONSOLIDATED CASH FLOW STATEMENT
| (unaudited, in thousands of euros) | 01.01.2016- | 01.01.2015- | |
| 30.06.2016 | 30.06.2015 | ||
| Cash flows from operating activities | |||
| Net profit/-loss for the period | -2,246 | 15,186 | |
| Adjustments | 54,141 | 59,282 | |
| Changes in receivables and prepayments related to operating activities | -13,999 | -10,917 | |
| Changes in inventories | -10,133 | 891 | |
| Changes in liabilities related to operating activities | 26,228 | 14,097 | |
| Income tax paid | -2,138 | -246 | |
| 51,853 | 78,293 | ||
| Cash flow from/used in investing activities | |||
| Purchase of property, plant and equipment and intangible assets (Notes 7, 8, 9) | -31,325 | -18,499 | |
| Proceeds from disposals of property, plant and equipment | 121 | 25,001 | |
| Interest received | 35 | 41 | |
| -31,169 | 6,543 | ||
| Cash flows used in financing activities | |||
| Repayment of loans (Note 9) | -35,458 | -49,381 | |
| Change in overdraft (Note 9) | 40,246 | -2,644 | |
| Payment of finance lease liabilities (Note 9) | -49 | -40 | |
| Interest paid | -12,944 | -14,744 | |
| Payments for settlement of derivatives | -2,180 | -2,290 | |
| -10,385 | -69,099 | ||
| TOTAL NET CASH FLOW | 10,299 | 15,737 | |
| Cash and cash equivalents: | |||
| - at the beginning of period | 81,976 | 65,311 | |
| - increase (+) / decrease (-) | 10,299 | 15,737 | |
| - at the end of period | 92,275 | 81,048 | |
Veiko Haavapuu Finance Director AS Tallink Grupp Sadama 5/7, 10111 Tallinn Tel +372 640 9914 E-mail veiko.haavapuu@tallink
