Tallink Grupp
Quarterly report

12 months unaudited results of the 2010/2011 financial year

Tallinn, 2011-10-17 15:11 CEST -- 12 months unaudited results of the 2010/2011 financial year

The twelve months and fourth quarter of the 2010/2011 financial year witnessed successful performance of AS Tallink Grupp and its subsidiaries’ (the Group). Passenger volume and sales figures registered all-time highs strengthening the Group’s position as the leading short cruise and business travel provider on the Baltic Sea.  

The Group’s unaudited revenue for the twelve months of the 2010/2011 financial year (01.09.2010-31.08.2011) reached 897 million euros which is a strong increase of EUR 83 million or 10% compared to the previous financial year. The number of passengers transported during twelve months of the financial year increased by 8% to 9.1 million passengers being the main driver for the revenue growth. The Group was also able to increase the revenue per passenger. The growth in the passenger volume was supported by increased advertising and sales activities which is visible in the higher marketing expenses.

The twelve months Gross profit was nearly 187 million euros, 11% up from last year. In the same period EBITDA was nearly 159 million euros being 14 million euros or 9% higher than a year ago. The Group’s unaudited consolidated net profit for the twelve months of the 2010/2011 financial year amounted to 38 million euros, 76% more than in the twelve months of the previous financial year.

Noticeable contribution to the Group’s twelve months earnings comes from the fourth quarter (01.06.2011-31.08.2011) which is the high season. In the fourth quarter of the 2010/2011 financial year the passenger volume increased by 5% to 2.98 million passengers. The Group’s revenue for the fourth quarter increased by 24 million euros or 9% in result of the various revenue maximisation measures, introducing the fuel surcharges, improved passenger spending and higher passenger volume. Given the high operating leverage and seasonality in the Group’s operations the increase in the revenues in the profitable summer season converted to nearly 13 million euros higher gross profit and EBITDA which were EUR 97 million and EUR 90 million respectively. The net profit for the fourth quarter was 54 million euros, a 27% increase compared to the fourth quarter of the previous financial year. Earnings per share increased by 2 cents to EUR 0.08.

As outlined in the strategy the Group continued to reduce the debt. In the end of fourth quarter the interest bearing liabilities amounted to 1 011 million euros which is 5% less than a year ago. As a result of the improved cash position the Group’s net debt is down by 9% to 916 million euros. The ratio of the net debt to EBITDA has fallen to 5.8 as of 31.08.2011.

Similarly to the previous quarters the Group’s operating costs increased in the fourth quarter mainly in result of the fuel cost increase due to the high fuel prices. For the fourth quarter the fuel cost was EUR 7 million or 22% higher than a year ago and for the whole twelve months of the 2010/2011 financial year the increase was EUR 28 million which is 26% more compared to the year earlier.

The fourth quarter result met the management expectations.

EBITDA – Earnings before net financial items, taxes, depreciation and amortization;
EBITDA margin – EBITDA / net sales;
Gross margin – gross profit / net sales;
Net profit margin – net profit / net sales;
Equity ratio – total equity / total assets;
Earnings per share – net profit / weighted average number of shares outstanding;
Shareholder’s equity per share – shareholder’s equity / number of shares outstanding;
Net debt – Interest bearing liabilities less cash and cash equivalents;
Net debt to EBITDA – Net debt / 12-months trailing EBITDA;
* Share numbers exclude own shares.

In the end of the fourth quarter the Group’s cash and cash equivalents amounted to EUR 95 million which is nearly EUR 38 million higher than a year ago. In addition the Group maintains unused working capital credit lines in amount of EUR 47 million which takes Group’s total liquidity position to EUR 142 million.

The management estimates overall improvement in the Group results in the last four months of the financial year. The growth in the volumes and revenue will not be as aggressive compared to the autumn of 2010. The current uncertainties in the economic environment and potential economic developments may have impact to the Group result, but which cannot be estimated today. As fuel prices have remained at high levels they continue to increase the fuel costs whereas the positive impact shall be expected from the closure of the Finland-Germany route which previous negative result will change to positive result from chartering of ships.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 (unaudited, in thousands of EUR)

CONSOLIDATED CASH FLOW STATEMENT

The Group will provide the next interim report in February 2012 for the 16-months period of the 2010/2011 financial year which will include the results for the extended four months (September-December) period.
 

         Janek Stalmeister
         Member of the Management Board, CFO
         
         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