Tallink Grupp makes 45.4m net profit in first nine months of 2017
Tallink Grupp has announced its unaudited financial results for the third quarter and first nine months of 2017.
According to the Group’s unaudited 9-month interim statement, the Group has earned a EUR 45.4 million net profit in the first nine months, which is a 4.8 million euro (11.9%) increase on the same period last year. The Group’s unaudited revenue for the nine months increased by 3.2% to 734.1 million euros compared to the same period in 2016. The unaudited EBITDA also increased in the nine months compared to the same period in 2016 by almost 10 million euros and amounted to 129.5 million euros.
Commenting on the results, Tallink Grupp’s Finance Director Veiko Haavapuu said:
„These are positive results for Tallink Grupp demonstrating a steady performance in a competitive market. There have been several factors influencing the financial result of the first nine months of 2017, such as the new LNG fast ferry Megastar starting to operate on the Tallinn-Helsinki route, the scheduled maintenance of five cruise ferries in the first quarter of 2017, a rise in carriage capacity on several Tallink Grupp operated routes after the rerouting of vessels in December 2016 and increased competition in the maritime traffic between Estonia and Finland, which has put pressure on ticket prices, to name but a few.”
„Despite the competitive market, Tallink Grupp has seen a steady increase in overall passenger numbers and positive growth in cargo transportation from all operated routes. The strongest quarter in 2017 has been the third quarter, which is not surprising as it includes the tourism high season of July and August and follows the same pattern year on year. The third quarter of 2017, however, has been particularly positive as we reached a new monthly passenger record in July and the passenger figure for the whole third quarter saw an increase of 2%, which has also had a positive impact on the financial results for the quarter,“ Haavapuu added.
In the third quarter of 2017, the Group’s unaudited net profit was EUR 47.8 million, 11.7% higher than in the same period in 2016. Third-quarter EBITDA increased by EUR 8.3 million to EUR 75.4 million. The Group’s third quarter growth was driven by a higher number of passengers and transported cargo units, attributable to increased capacity, and more optimal operating costs resulting from three vessels on the Tallinn – Helsinki route. On the other hand, the result was also impacted by a year-on-year rise in fuel costs.
In the third-quarter of 2017, the revenues from all core operational segments increased compared to the third quarter last year. For example, the shops and restaurant revenue increased by EUR 3 million and ticket revenue by EUR 1.2 million, which was supported by the 2% increase in passenger numbers. The third-quarter cargo revenue increased by EUR 3.5 million (13.9%) compared to same period last year, which is attributable to the increase in the number of transported cargo units in all geographical segments.
„Our cargo transportation figures have seen the strongest growth among all our operational segments not only in the third quarter of 2017, but in the first nine months of the year as a whole with a EUR 10.1 million (13.1%) increase in revenue compared to the first nine months of 2016. This growth is strong testament to our continuous efforts to offer a flexible, affordable and efficient cargo service on all the different routes we operate.“ Haavapuu concluded.
AS Tallink Grupp is the leading passenger and cargo transportation service provider in the Northern region of the Baltic Sea. The company owns 16 vessels and operates under the brands of Tallink and Silja Line on 6 different routes. AS Tallink Grupp employs 7,000 people in the region and over 9.5 million passengers travelled on its ferries in 2016.
