English Estonian
Published: 2012-11-15 15:05:00 CET
Tallink Grupp
Quarterly report

Q3 results of the 2012 financial year

Tallinn, 2012-11-15 15:05 CET --  Q3 results of the 2012 financial year 

In the third quarter of the 2012 financial year AS Tallink Grupp and its subsidiaries (the Group)   continued with the growth in sales. The Group carried a total of 2.77 million passengers in the third quarter, 2% more than in the same period last year. The Group’s consolidated revenue in the third quarter increased by 3.8% to EUR 282.4 million. The start of the third quarter was affected by adverse weather in the beginning of the summer causing higher than usual promotional activities to July bookings. Hence the Group’s total ticket revenue per passenger for the third quarter decreased and resulted in less revenue from ticket sales compared to same period in last year. However, the Group was able to improve the shop and restaurant sales resulting in overall higher total revenue. 

Due to the structural changes in the revenue and the related higher direct cost from goods, the Group’s gross profit for the third quarter stayed the same as last year. Total unaudited Gross profit for the third quarter amounted to EUR 85.2 million, up by 0.5% and EBITDA amounted to EUR 77.0 million down by 1.4% when compared to the same period in last year. In the third quarter of 2012 the Group’s unaudited net profit was EUR 49.6 million compared to EUR 40.7 million last year. Improvement in the net profit is mainly the effect of the decreased financial costs. The total cumulative net profit for the nine months of the 2012 financial year amounts to EUR 50.6 million, EUR 13.5 million higher than year ago.

In the third quarter the fuel prices continued to be at a high level. When measured in euros and compared to the same quarter of the last year the average quarterly price for ship fuel was approximately 13% higher. The Group’s fuel cost in the continuing operations increased by EUR 5.2 million. Impacted from the earlier closure of Finland-Germany operations the total fuel cost in the third quarter 2012 shows a EUR 1.2 million increase.

During the 2012 the Group has invested nearly EUR 1.5 million to upgrade and improve the visibility and appearance in the electronic channels. The new consumer marketing web pages just went live. The Group is soon to finish and launch a new version of online booking for the individual customers which has been developed emphasizing the easiness, usability, convenience and price transparency. In addition, Tallink’s mobile booking application will be available in the beginning of 2013.

Cash flow from operations amounted to EUR 59 million in the third quarter of 2012. EUR 41 million was used to repay the bank debt resulting in a 4.5% decrease in interest bearing liabilities in the third quarter. During the past 12 months the Group has reduced its interest bearing liabilities by EUR 134 million. The net debt in the end of the third quarter was EUR 803 million and the net debt ratio to the last 12-months EBITDA was 4.9. At the end of September the Group had EUR 59 million in cash and equivalents and the total of unused credit lines stood at EUR 66 million. The total liquidity, cash and unused credit facilities at the end of the second quarter were EUR 125 million providing a strong position for sustainable operations.

During the past few years the Group had significantly reduced the leverage in accordance to our strategy. In anticipation of the dividend policy in the near future the management is focusing to optimize the current aggressive loan repayment schedule for the next years to strengthen the Group’s free cash flow.

 

Q3 KEY FIGURES   2012
July-September
2011
July-September
change
Continuing operations        
Revenue from continuing operations EUR million 282.4 264.8 6.7%
Gross profit from continuing operations EUR million 85.2 85.0 0.2%
Net profit from continuing operations EUR million 49.6 41.1 20.6%
Group total including the discontinued operations      
Revenue EUR million 282.4 272.2 3.8%
Gross profit EUR million 85.2 84.8 0.5%
Gross margin (%)   30.1% 31.1%  
EBITDA EUR million 77.0 78.0 -1.4%
EBITDA margin (%)   27.3% 28.7%  
Net profit for the period EUR million 49.6 40.7 21.9%
Net profit margin (%)   17.6% 14.9%  
         
Depreciation and amortization EUR million 17.7 17.7 -0.4%
Investments EUR million 5.2 2.1 146%
         
Weighted average number of ordinary shares outstanding 669 882 040 669 882 040  
Earnings per share EUR 0.07 0.06 21.9%
         
Number of passengers   2 770 147 2 716 702 2.0%
Number of cargo units   68 831 70 059 -1.8%
Average number of employees   7 132 7 175 -0.6%
         
    30.09.2012 30.06.2012  
Total assets EUR million 1 754.3 1 760.7 -0.4%
Interest-bearing liabilities EUR million 862.2 902.3 -4.5%
Net debt EUR million 803.1 850.5 -5.6%
Total equity EUR million 755.6 706.1 7.0%
         
Equity ratio (%)   43.1% 40.1%  
Net debt to EBITDA   4.9 5.1  
         
Number of ordinary shares outstanding1   669 882 040 669 882 040 0%
Shareholders’ equity per share EUR 1.13 1.05 7.0%

 

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) 01.07.2012- 01.07.2011- 01.01.2012- 01.01.2011-
  30.09.2012 30.09.2011 30.09.2012 30.09.2011
Continuing operations        
Revenue  282,441 264,827 721,052 676,980
Cost of sales -197,290 -179,851 -559,833 -516,852
Gross profit 85,151 84,976 161,219 160,128
           
Marketing expenses -15,591 -14,497 -48,224 -44,551
Administrative expenses -10,561 -10,232 -33,455 -30,479
Other income 347 534 853 1,072
Other expenses -820 -15 -852 -30
Results from operating activities 58,526 60,766 79,541 86,140
         
Finance income  1,382 -2,434 2,534 213
Finance costs  -11,130 -17,106 -32,258 -41,060
Profit from subsidiaries  783 0 783 0
           
Profit/-loss before income tax 49,561 41,226 50,600 45,293
           
Income tax 0 -115 0 -115
           
Net profit/-loss from continuing operations 49,561 41,111 50,600 45,178
         
Profit/-loss from discontinued operation  0 -453 0 -8,047
Net profit/-loss for the period 49,561 40,658 50,600 37,131
         
Other comprehensive income/-expense        
Exchange differences on translating foreign operations -116 28 -121 151
Other comprehensive income/-expense for the period -116 28 -121 151
Total comprehensive income/-expense for the period 49,445 40,686 50,479 37,282
         
Profit/-loss attributable to:        
  Equity holders of the parent  49,561 40,658 50,600 37,131
           
Total comprehensive income/-expense attributable to:        
  Equity holders of the parent 49,445 40,686 50,479 37,282
         
Earnings per share (in EUR per share)        
  - basic  0.07 0.06 0.08 0.06
  - diluted  0.07 0.06 0.08 0.06

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(unaudited, in thousands of EUR)

ASSETS 30.09.2012 31.12.2011
       
Current assets    
Cash and cash equivalents 59,077 75,421
Trade and other receivables 44,631 35,152
Prepayments 11,828 7,087
Inventories 27,749 25,198
Total current assets 143,285 142,858
       
Non-current assets    
Investments in associates 226 226
Other financial assets 1,761 2,551
Deferred income tax assets 9,452 9,452
Investment property 300 300
Property, plant and equipment  1,540,207 1,583,002
Intangible assets  59,040 61,153
Total non-current assets 1,610,986 1,656,684
       
TOTAL ASSETS 1,754,271 1,799,542
       
       
LIABILITIES AND EQUITY    
     
Current liabilities    
Interest bearing loans and borrowings  164,090 145,261
Trade and other payables 90,323 86,793
Deferred income 22,274 25,226
Derivatives  23,739 22,668
Total current liabilities 300,426 279,948
       
Non-current liabilities    
Interest bearing loans and borrowings  698,128 814,305
Other liabilities 147 198
Total non-current liabilities 698,275 814,503
TOTAL LIABILITIES 998,701 1,094,451
       
EQUITY    
Equity attributable to equity holders of the parent    
Share capital 404,290 404,290
Share premium 639 639
Reserves 71,752 70,497
Retained earnings 278,889 229,665
Total equity attributable to equity holders of the parent 755,570 705,091
TOTAL EQUITY 755,570 705,091
       
TOTAL LIABILITIES AND EQUITY 1,754,271 1,799,542

 

 

               

CONSOLIDATED CASH FLOW STATEMENT

(unaudited, in thousands of EUR) 01.01.2012 - 01.01.2011-
    30.09.2012 30.09.2011
Cash flows from operating activities    
Net profit/-loss for the period 50,600 37,131
Adjustments 82,687 94,726
Changes in assets related to operating activities -15,974 -17,530
Changes in liabilities related to operating activities 1,297 120
Income tax paid -11 -114
  118,599 114,333
Cash flow used for investing activities    
Purchase of property, plant and equipment and intangible assets  -8,898 -6,652
Proceeds from disposals of property, plant and equipment 47 59
Proceeds from subsidiaries 1,992 0
Payments from settlement of derivatives -2,912 -3,575
Interest received 236 181
  -9,535 -9,987
Cash flow from (+)/ used for (-) financing activities    
Redemption of loans  -99,477 -39,284
Repayment of finance lease liabilities  -51 -64
Interest paid -25,880 -28,068
  -125,408 -67,416
       
TOTAL NET CASH FLOW -16,344 36,930
       
Cash and cash equivalents:    
- at the beginning of period 75,421 44,946
- increase (+) / decrease (-) -16,344 36,930
Cash and cash equivalents at end of period 59,077 81,876

 

         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


Interim 2012 Q3eng.pdf