In the second quarter of 2024, AS Tallink Grupp and its subsidiaries carried 1,451,768 pax, some 5.8% less than in 2Q23.
The number of cargo units transported increased by 1.7%, compared to the same period a year ago, while the number of passenger vehicles dropped by 11.4% year-on-year, totalling 209,760.
Tallink’s unaudited consolidated revenue amounted to €210 mill (€229.7 mill in 2Q23), down by 8.5%. Unaudited EBITDA was €46.6 mill (€68.5 mill in 2Q23) and the unaudited net profit for the period was €6.1 mill (€33.4 mill in 2Q23).
The following operational factors impacted the Group’s revenue and operating results in the second quarter of 2024, it said:
- Demand continued to be affected by low consumer and business confidence levels, the economic challenges in the Group’s core markets, as well as mounting global geopolitical tensions.
- Easter holidays that impacted the passenger volumes fell in the first quarter in 2024 while in 2023 the Easter holidays occurred in the second quarter.
- As at the end of the quarter, the Group operated 14 vessels, including two shuttle vessels, two cargo vessels, five operating cruise ferries, as well as three vessels that were chartered out and two vessels that were laid up.
- The Group operated three hotels in Tallinn and one in Riga.
- Tallink’s net debt was down to €548.9 mill as at the end of the quarter (€581 mill as at 31st March, 2024) bringing the net debt to EBITDA ratio to 2.7 as at 30th June, 2024.
- Income tax on dividends to the amount of €9.2 mill was recorded in 2Q24.
- The Group continues to focus on cost efficiencies from the previously implemented measures and maintaining profitable operations on its core routes.
- It 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.
The number of passengers carried on the Estonia/Finland route remained unchanged year-on-year, while the number of transported cargo units increased by 5.4%.
Revenue from the Estonia/Finland route increased by €4.6 mill to €84.4 mill, while the segment result remained on the same level as a year ago amounting to €24.9 mill.
This segment operated two shuttle vessels and one cruise ferry until 31st May, 2024 and two shuttle vessels from thereon.
On 31st May, 2024, the cruise ferry ‘Victoria I’ started operating the Tallinn/Stockholm route. The shuttle vessel ‘James Joyce’ (formerly ‘Star’) ceased operating on the route in May, 2023 due to a charter.
In 2Q24, the year-on-year decrease in the number of passengers on Finland/Sweden routes was 21%, while the number of transported cargo units increased by 6.4%.
This routes’ revenue fell by €11.7 mill to €58.6 mill and the segment result decreased by €8.5 mill to €1.5 mill, year-on-year.
The segment operated one cruise ferry on Turku-Stockholm/Turku-Kapellskär routes and two cruise ferries on the Helsinki/Stockholm route.
On the Estonia/Sweden routes the number of passengers increased by 2.4%, while the number of transported cargo units decreased by 19.1%, compared to 2Q23.
The Estonia/Sweden routes’ revenue increased by €0.9 mill to €25.8 mill and segment result decreased by €4.2 mill to a loss of €0.9 mill, year-on-year.
These routes were operated by two cargo vessels and one cruise ferry until 31st May, 2024. The cruise ferry ‘Victoria I’ was added to the Tallinn/Stockholm route on 31st May, 2024, operating on the route until 31st August, 2024.
As at the end of 2Q24, the Group had three vessels on charter, of which one was on long-term and two on short-term charter (2Q23: seven vessels, including three on long-term and four on short-term).
The charter of the ropax ‘Superfast IX’ (formerly ‘Atlantic Vision’) ended in May, 2024 after operating in Canada since November, 2008.
At the end of the 2Q24, the following vessels were chartered out:
- Shuttle vessel ‘James Joyce’ (formerly ’Star’) was chartered out from 5th May, 2023 for 20 months with an option to extend the charter by two, plus two, years and a purchase option.
- Cruise ferry ‘Galaxy I’ was chartered out in September, 2022. In March, 2024, this agreement was extended by six months until October, 2024 with the option of further extension at the end of the period.
- Cruise ferry ‘Silja Europa’ was chartered out in August, 2022. In October, 2023, the charter agreement was extended until the end of 2024.
As at 30th June, 2024, the Group’s cash and cash equivalents amounted to €70.9 mill (€48.9 mill as at 31st March, 2024) and the Group had €75 mill in unused credit lines.
The total liquidity buffer (cash, cash equivalents and unused credit facilities) amounted to €145.8 mill (€123.9 mill as at 31st March, 2024).
For the first six months of the 2024 financial year, the Group carried 2.6 mill passengers, down by 1.4% compared to the same period last year.
The Group’s unaudited revenue for the period decreased by 7.6%, amounting to €370.4 mill.
First half unaudited EBITDA was €81.1 mill (€95.6 mill in January/June, 2023) and unaudited net profit was €8.7 mill (€28 mill in January/June. 2023).
