Earnings Release • Apr 24, 2025
Earnings Release
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AS Tallink Grupp Unaudited Consolidated Interim Report for the Q1 2025
The results of AS Tallink Grupp for the Q1 2025 will be introduced at an
Investor Webinar held today at 12:00 (EEST). To participate, please join via the
following link; (https://teams.microsoft.com/l/meetup-
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Further details are available in a previously published announcement
(https://view.news.eu.nasdaq.com/view?id=1356677&lang=en).
In the first quarter (1 January - 31 March) of 2025, AS Tallink Grupp and its
subsidiaries (hereinafter referred to as "the Group") carried 970 359
passengers, which is 12.0% less than in the first quarter of 2024. The number of
cargo units transported decreased by 31.9% year-on-year amounting to 57 830. The
number of passenger vehicles was down by 10.9% compared to the same period a
year ago and amounted to 135 829.
The Group's unaudited consolidated revenue amounted to EUR 137.3 million (EUR
160.4 million in Q1 2024), down by 14.4% year-on-year. Unaudited negative EBITDA
was EUR 3.8 million (positive EBITDA of EUR 34.5 million in Q1 2024) and the
unaudited net loss for the period was EUR 33.2 million (net profit of EUR 2.6
million in Q1 2024).
The following operational factors impacted the Group's revenue and operating
results in the first quarter of 2025:
* Demand continued to be affected by low consumer and business confidence
levels, the economic challenges in the Group's core markets and global
geopolitical tensions.
* As at the end of the quarter, the Group operated 14 vessels including 2
shuttle vessels, 6 passenger vessels, 2 vessels that were chartered out and
4 vessels that were in lay-up.
* The Group closed its stand-alone restaurant Flavore in Tallinn and a Burger
King restaurant in Vienibase shopping centre in Riga in March 2025.
* During the quarter total investments amounted to EUR 13.3 million majority
of which were made to upgrading the cruise ferries Baltic Princess and Silja
Serenade. The planned maintenance works totalling 68 days in the first
quarter of 2025 affected the passenger and cargo levels in Finland-Sweden
routes.
* The Group operated 3 hotels in Tallinn and 1 in Riga.
* The Group's net debt was EUR 569.1 million as at the end of the first
quarter of 2025 (EUR 537.7 million as at 31 December 2024) bringing the net
debt to EBITDA ratio to 4.2 as at 31 March 2025.
* In the first quarter of 2025, total loan repayment and related interest
expense amounted to
EUR 20.8 million.
* The Group continues to focus on cost efficiencies from the previously
implemented measures and maintaining profitable operations on its core
routes.
* The Group regularly monitors the developments on its core routes including
the capacity of each route and continues to look for new chartering options
for vessels not used on the main routes and to work on extending the
existing chartering agreements.
Sales and Results by Segments
In the first quarter of 2025, the Group's total revenue decreased by EUR 23.1
million to EUR 137.3 million compared to EUR 160.4 million year ago.
Revenue from route operations (the Group's core business) decreased by EUR 16.7
million to EUR 110.5 million compared to the first quarter of 2024. The segment
result from route operations (the Group's core business) amounted to a loss of
EUR 13.4 million compared to a loss of EUR 2.1 million in the first quarter of
2024.
The number of passengers carried on the Estonia-Finland route decreased by
10.9% in year-on-year comparison. The number of transported cargo units
decreased by 34.7%. Revenue from the Estonia-Finland route decreased by EUR 8.4
million to EUR 57.0 million and the segment result decreased by EUR 6.7 million
to EUR 2.9 million, year-on-year. The segment reflects the operations of two
shuttle vessels, MyStar and Megastar, and the cruise ferry Victoria I. During
the quarter, the shuttle vessel Megastar did not operate on the Tallinn-Helsinki
route for 3 days due to scheduled maintenance.
In the first quarter of 2025, the year-on-year decrease in the number of
passengers on Finland-Sweden routes was 17.0%. The number of transported cargo
units decreased by 23.5%. The routes' revenue decreased by EUR 6.7 million to
EUR 37.6 million and the segment loss increased by EUR 2.5 million to a loss of
EUR 10.8 million, year-on-year. The segment reflects the operations of one
cruise ferry on the Turku-Stockholm and two cruise ferries on the Helsinki-
Stockholm route. During the quarter, the cruise ferry Silja Serenade did not
operate on the Helsinki-Stockholm route for 30 days and the cruise ferry Baltic
Princess on the Turku-Stockholm route for 21 days due to scheduled maintenance.
On Estonia-Sweden routes the number of carried passengers decreased by 6.1%
while the number of transported cargo units decreased by 22.9% compared to the
same period a year ago. Year-on-year, the revenue of Estonia-Sweden routes
decreased by EUR 1.6 million to EUR 16.0 million. The segment loss increased by
EUR 2.1 million to a loss of EUR 5.5 million. The Estonia-Sweden segment
reflects the operations of the Tallinn-Stockholm and the Paldiski-Kapellskär
routes. The Tallinn-Stockholm route was operated by the cruise ferry Baltic
Queen. The Paldiski-Kapellskär route was operated by cargo vessel Regal Star
until 9 February 2025 after which the route was operated by passenger vessel
Star I (formerly Star, now James Joyce). The cargo vessel Sailor stopped
operating the Paldiski-Kapellskär route on 15 January 2025. The cargo vessels
Sailor and Regal Star remain in lay-up.
Revenue from the segment Other decreased by a total of EUR 6.6 million and
amounted to EUR 27.5 million. The segment loss amounted to EUR 1.7 million
decreasing by EUR 7.8 million compared to the same period a year ago. The
decrease was mainly driven by fewer vessels on charter. As at the end of the
first quarter of 2025, the Group had 2 vessels on charter (Q1 2024: 4 vessels on
charter). In January 2025, the charter agreement of the passenger vessel James
Joyce (formerly Star) ended as the charterer decided not to use the extension
option the agreement. The vessel operated Paldiski-Kapellskär route from
February until the agreement was signed between the subsidiary of AS Tallink
Group, Tallink Hansaway Limited, and Irish Continental Group plc for the sale of
the vessel in April 2025.
At the end of the first quarter of 2025, the following vessels were chartered
out:
* The cruise ferry Galaxy I was chartered out in September 2022. In October
2024, the agreement was extended by 12 months until October 2025 with the
option of extending the agreement at the end of the agreement period by 6+6
months.
* The cruise ferry Silja Europa was chartered out in August 2022. The new
charter agreement from December 2024 is effective from 1 January 2025 for
six months. The agreement includes the option of extending the agreement at
the end of the agreement period by another 7+6+6 moths.
Earnings
In the first quarter of 2025, the Group generated gross loss of EUR 4.7 million
compared to gross profit of EUR 13.8 million in the first quarter of 2024. The
Group generated negative EBITDA of EUR 3.8 million in the first quarter of
2025. In the first quarter of 2024, the Group's EBITDA of EUR 34.5 million was
impacted by non-recurring income from the sale of the cruise vessel Isabelle.
Amortisation and depreciation expense decreased by EUR 1.3 million to EUR 23.3
million year-on-year.
As a result of decreased outstanding loan balance and declining interest rates
net finance costs declined by EUR 1.4 million year-on-year to EUR 6.1 million in
the first quarter of 2025 (EUR 7.5 million in the first quarter of 2024).
The Group's unaudited net loss for the first quarter of 2025 was EUR 33.2
million or EUR 0.045 per share. The Group's profitability was largely impacted
by 4 vessels in lay-up. By excluding the loss generated from vessels in lay-up
the Group's quarterly result was comparable to the pre-crisis first quarter
result of 2019. In the first quarter of 2024, the Group earned net profit of EUR
2.6 million or EUR 0.003 per share.
Investments
The Group's investments in the first quarter of 2025 amounted to EUR 13.3
million (EUR 6.3 million in the first quarter of 2024). Majority of investments
were maintenance and refurbishment works in the cruise ferries Baltic Princess
and Silja Serenade including significant technical and electronic upgrades.
During the dry docking of the cruise ferry Silja Serenade the underwater
components, such as the bow thrusters and rudders, were serviced, and the vessel
was partly repainted. In addition, extensive refurbishment of passenger areas
was done on the cruise ferry Baltic Princess.
Financial Position
At the end of the first quarter of 2025, the Group's net debt amounted to EUR
569.1 million, up by EUR 31.4 million compared to the end of the financial year
2024. The net debt to EBITDA ratio was 4.16 at the reporting date (3.07 as at
31 December 2024).
As at 31 March 2025, the Group's cash and cash equivalents amounted to EUR 15.9
million (EUR 18.7 million as at 31 December 2024) and the Group had EUR 54.7
million in unused credit lines (EUR 75.0 million as at 31 December 2025). The
total liquidity buffer (cash, cash equivalents and unused credit facilities)
amounted to EUR 70.5 million (EUR 93.7 million as at 31 December 2025).
During the quarter, the Group repaid loans and related interest expense in the
amount of EUR 20.8 million (EUR 22.4 million in the first quarter of 2024).
Dividends
In 2018, the Group adopted a dividend policy subject to which dividends of a
minimum amount of EUR 0.05 per share would be paid if the economic performance
enables it.
Concorded with the Supervisory Board of the Group, the Management Board of the
Group has decided to prepare a proposal to the General Meeting of Shareholders
to pay a dividend of EUR 0,06 per share in 2025.
Key Figures
For the period Q1 2025 Q1 2024 Q1 2023
------------------------------------
Revenue (EUR million) 137.3 160.4 171.2
Gross profit/loss (EUR million) -4.7 13.8 24.8
EBITDA¹ (EUR million) -3.8 34.5 27.1
EBIT¹ (EUR million) -27.1 9.8 1.9
Net profit/loss for the period (EUR
million) -33.2 2.6 -5.4
Depreciation and amortisation (EUR
million) 23.3 24.6 25.2
Capital expenditures¹ ²(EUR million) 13.3 6.3 11.5
Weighted average number of ordinary shares
outstanding 743 569 064 743 569 064 743 569 064
Earnings/loss per share¹ (EUR) -0.045 0.003 -0.007
Number of passengers 970 359 1 102 738 1 049 777
Number of cargo units 57 830 84 950 86 732
Average number of employees 4 773 4 888 4 914
As at 31.03.2025 31.12.2024 31.03.2024
------------------------------------
Total assets (EUR million) 1 470.5 1 463.9 1 548.6
Total liabilities (EUR million) 721.4 711.5 760.0
Interest-bearing liabilities (EUR million) 584.9 556.4 629.9
Net debt¹ (EUR million) 569.1 537.7 581.0
Net debt to EBITDA¹ 4.2 3.1 2.6
Total equity (EUR million) 749.1 782.3 788.6
Equity ratio¹ (%) 51% 53% 51%
Number of ordinary shares outstanding 743 569 064 743 569 064 743 569 064
Shareholders' equity per share (EUR) 1.01 1.05 1.06
Ratios¹ Q1 2025 Q1 2024 Q1 2023
------------------------------------
Gross margin (%) -3.5% 8.6% 14.5%
EBITDA margin (%) -2.8% 21.5% 15.8%
EBIT margin (%) -19.8% 6.1% 1.1%
Net profit/loss margin (%) -24.2% 1.6% -3.2%
ROA (%) 2.7% 7.6% 4.6%
ROE (%) 0.6% 11.4% 7.1%
ROCE (%) 3.2% 9.1% 6.0%
1 Alternative performance measures based on ESMA guidelines are disclosed in the
Alternative Performance Measures section of Interim Report.
2 Does not include additions to right-of-use assets.
EBITDA: result from operating activities before net financial items, share of
profit of equity-accounted investees, taxes, depreciation and amortization
EBIT: result from operating activities
Earnings/loss per share: net profit or loss/ 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 profit/loss margin: gross profit / net sales
EBITDA margin: EBITDA / net sales
EBIT margin: EBIT / net sales
Net profit/loss margin: net profit or loss / net sales
Capital expenditure: additions to property, plant and equipment - additions to
right-of-use assets + additions to intangible assets
ROA: earnings before net financial items, taxes 12-months trailing / average
total assets
ROE: net profit 12-months trailing / average shareholders' equity
ROCE: earnings before net financial items, taxes 12-months trailing / (total
assets - current liabilities (average for the period))
Net debt: interest-bearing liabilities less cash and cash equivalents
Net debt to EBITDA: net debt / EBITDA 12-months trailing
Consolidated statement of profit or loss and other comprehensive income
Revenue 137 278 160 402
Gross profit/loss -4 748 13 799
Sales and marketing expenses -10 299 -9 769
Administrative expenses -12 842 -12 745
Other operating income 844 19 377
Result from operating activities -27 134 9 835
Finance income 32 228
Profit/loss before income tax -33 201 2 380
Income tax 0 192
Net profit/loss for the period -33 201 2 572
Net profit/loss for the period attributable to equity
holders of the Parent -33 201 2 572
Other comprehensive income
Items that may be reclassified to profit or loss
Other comprehensive income for the period -158 191
Total comprehensive profit/loss for the period -33 359 2 763
Total comprehensive profit/loss for the period attributable
to equity holders of the Parent -33 359 2 763
EPS (in EUR) -0.045 0.003
Consolidated statement of financial position
ASSETS
Cash and cash equivalents 15 855 48 872 18 705
Trade and other receivables 31 380 30 718 25 268
Prepayments 18 083 22 411 8 764
Prepaid income tax 0 193 0
Short-term intangible assets 8 128 1 481 6 901
Current assets 120 696 145 867 107 721
Other financial assets and prepayments 514 499 518
Deferred income tax assets 21 840 21 840 21 840
Investment property 300 300 300
Property, plant and equipment 1 304 584 1 353 435 1 310 000
Non-current assets 1 349 844 1 402 737 1 356 220
TOTAL ASSETS 1 470 540 1 548 604 1 463 941
LIABILITIES AND EQUITY
Interest-bearing loans and borrowings 150 344 104 486 104 549
Trade and other payables 96 242 89 969 95 146
Payables to owners 6 6 6
Income tax liability 6 10 7
Current liabilities 286 849 234 634 229 810
Total liabilities 721 414 760 015 681 635
Share capital 349 477 349 477 349 477
Share premium 663 663 663
Reserves 65 410 66 807 65 901
Equity attributable to equity holders of the
Parent 749 126 788 589 782 306
TOTAL LIABILITIES AND EQUITY 1 470 540 1 548 604 1 463 941
Consolidated statement of cash flows
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit/loss for the period -33 201 2 572
Adjustments 29 464 13 863
Changes in:
Receivables and prepayments related to operating activities -15 427 -9 208
Inventories -394 -2 262
Changes in assets and liabilities -4 996 155
Cash generated from operating activities -8 733 16 590
NET CASH FROM/USED OPERATING ACTIVITIES -8 734 16 583
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, equipment and intangible assets
(Notes 6, 7) -13 290 -6 327
Proceeds from disposals of property, plant, equipment 0 24 436
NET CASH USED IN INVESTING ACTIVITIES -13 258 18 337
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of loans received (Note 8) -15 970 -15 970
Change in overdraft (Note 8) 45 338 0
Payment of lease liabilities (Note 8) -4 858 -4 669
Interest paid -5 368 -6 972
Payment of transaction costs related to loans 0 -358
NET CASH FROM/USED IN FINANCING ACTIVITIES 19 142 -27 969
Cash and cash equivalents at the beginning of period 18 705 41 921
Cash and cash equivalents at the end of period 15 855 48 872
Anneli Simm
Investor Relations Manager
AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail [email protected] (mailto:[email protected])
Phone: +372 56157170
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