The results of AS Tallink Grupp for the Q4 and 12 months 2024 will be introduced at an Investor Webinar held today at 12:00 (EEST). To participate, please join via the following link; we kindly ask participants to provide their questions latest by 11:00 am by email to: investor@tallink.ee. Further details are available in a previously published announcement.
In the financial year 2024 (1 January - 31 December), AS Tallink Grupp and its subsidiaries (hereinafter referred to as "the Group") carried 5 580 016 passengers, which is 2.2% less than in the financial year 2023. The number of cargo units transported decreased by 6.4% compared to the previous year amounting to 303 234. The number of passenger vehicles was down by 7.5% year-on-year and amounted to 777 592.
The Group's unaudited consolidated revenue amounted to EUR 785.8 million (EUR 835.3 million in the financial year 2023), down by 5.9% year-on-year. Unaudited EBITDA was EUR 175.2 million (EUR 214.5 million in the financial year 2023) and the unaudited net profit for the period was EUR 40.3 million (EUR 78.9 million in the financial year 2023).
The following operational factors impacted the Group's revenue and operating results in the financial year 2024:
- 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 financial year, the Group operated 14 vessels including 2 shuttle vessels, 2 cargo vessels, 5 operating cruise ferries, 3 vessels that were chartered out (4 at the beginning of the year) and 2 vessels that were in lay-up.
- The Group extended the charter agreement of the cruise ferry Galaxy I until October 2025 with the extension option of 6+6 months and signed an agreement for chartering of the cruise ferry Silja Europa until June 2025 with the extension option of 7+6+6 months at the end of the agreement term.
- The Group sold the cruise ferry Isabelle in January 2024.
- The Group operated 3 hotels in Tallinn and 1 in Riga.
- The Group's net debt was EUR 537.7 million as at the end of the financial year (EUR 555.7 million as at 30 September 2024) bringing the net debt to EBITDA ratio to 3.07 as at 31 December 2024.
- In the financial year 2024, total loan repayment and related interest expense amounted to EUR 116.1 million.
- Payment of dividends in the amount of EUR 44.6 million and related income tax expense in the amount of EUR 9.2 million.
- As a result of the voluntary takeover bid, the shareholding of AS Infortar, the core shareholder of the Group, increased from 46.8% to 68.5% as at 9 August 2024. AS Tallink Grupp continues as an independent listed company also after AS Infortar become the majority shareholder of the Group.
- 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 financial year 2024, the Group's total revenue decreased by EUR 49.5 million to EUR 785.8 million compared to EUR 835.3 million in the financial year 2023.
Revenue from route operations (the Group's core business) decreased by EUR 6.9 million to EUR 638.9 million compared to the financial year 2023. The segment result from route operations (the Group's core business) amounted to EUR 81.5 million, down by EUR 25.7 million compared to the financial year 2023.
The number of passengers carried on the Estonia-Finland route increased by 2.5% in year-on-year comparison. The number of transported cargo units decreased by 5.1%. Revenue from the Estonia-Finland route increased by EUR 14.8 million to EUR 312.8 million and the segment result increased by EUR 2.3 million to EUR 81.3 million, year-on-year. The segment reflects the operations of two shuttle vessels, MyStar and Megastar, and the cruise ferry Victoria I except for from 31 May 2024 until 31 August 2024 when the Tallinn-Helsinki route was operated by two shuttle vessels as the cruise ferry Victoria I operated the Tallinn-Stockholm route.
In the financial year 2024, the year-on-year decrease in the number of passengers on Finland-Sweden routes was 15.4%. The number of transported cargo units increased by 3.4%. The routes' revenue decreased by EUR 28.3 million to EUR 228.7 million and the segment result decreased by EUR 20.9 million to EUR 2.8 million, year-on-year. The segment reflects the operations of one cruise ferry on the Turku-Kapellskär route until 31 May 2024 and on the Turku-Stockholm route from 31 May 2024 as well as two cruise ferries on the Helsinki-Stockholm route.
On Estonia-Sweden routes the number of carried passengers increased by 8.0% while the number of transported cargo units decreased by 19.6% compared to the financial year 2023. Year-on-year, the revenue of Estonia-Sweden routes increased by EUR 6.6 million to EUR 97.4 million. The segment result declined by EUR 7.1 million to a loss of EUR 2.6 million. Estonia-Sweden routes reflect the operation of two cargo vessels on the Paldiski-Kapellskär route and one cruise ferry on the Tallinn-Stockholm route. However, during the summer peak season from 31 May to 31 August 2024 the Tallinn-Stockholm route was operated in addition to cargo vessels with two cruise ferries - Victoria I and Baltic Queen.
Revenue from the segment Other decreased by a total of EUR 43.2 million and amounted to EUR 152.8 million. The decrease was mainly driven by less vessels on charter. As at the end of the financial year 2024, the Group had 3 vessels on charter (end of the financial year 2023: 5 vessels on charter).
At the end of the financial year 2024, the following vessels were chartered out:
- The shuttle vessel James Joyce (formerly Star) was chartered out from 5 May 2023 for 20 months with an option to extend the charter by 2+2 years and an option to purchase the vessel. As the charterer decided not to use the extension option the agreement expired in January 2025. Starting from February 2025 the shuttle vessel operates the Paldiski-Kapellskär route.
- 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 financial year 2024, the Group's gross profit declined by EUR 50.3 million to EUR 153.6 million compared to EUR 203.8 million in the financial year 2023. EBITDA declined by EUR 39.3 million and amounted to EUR 175.2 million.
Amortisation and depreciation expense decreased by EUR 3.5 million to EUR 97.8 million year-on-year.
As a result of decreased outstanding loan balance and declining interest rates net finance costs declined by EUR 7.3 million year-on-year to EUR 28.3 million in the financial year 2024 (EUR 35.5 million in the financial year 2023).
The Group's unaudited net profit for the financial year 2024 was EUR 40.3 million or EUR 0.054 per share compared to EUR 78.9 million or EUR 0.106 per share in the financial year 2023.
Investments
The Group's investments in the financial year 2024 amounted to EUR 22.4 million (EUR 28.2 million in the financial year 2023). Main investments in vessels included maintenance and repair works i.e., technical works as well as interior upgrades. The Group also continued to invest in the improvement of its IT systems.
Financial Position
At the end of the financial year 2024, the Group's net debt amounted to EUR 537.7 million, down by EUR 18.0 million compared to the end of third quarter of 2024. The net debt to EBITDA ratio was 3.07 at the reporting date (2.98 as at 30 September 2024).
As at 31 December 2024, the Group's cash and cash equivalents amounted to EUR 18.7 million (EUR 32.6 million as at 30 September 2024) and the Group had EUR 75.0 million in unused credit lines (EUR 75.0 million as at 30 September 2024). The total liquidity buffer (cash, cash equivalents and unused credit facilities) amounted to EUR 93.7 million (EUR 107.6 million as at 30 September 2024).
The decline in cash and cash equivalents in the financial year 2024 was driven by the payment of dividends (EUR 44.6 million) and related income tax (EUR 4.9 million) as well as the repayment of loans and related interest expense (EUR 116.1 million). In the financial year 2023 the net repayment of loans amounted to EUR 189.6 million.
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.
The Annual General Meeting of Shareholders held on 7 May 2024 adopted a resolution to pay dividends of EUR 0.06 per share for the financial year of 2023. The dividends in the amount of EUR 44.6 million were paid out on 3 July 2024.
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 6 cents per share in 2025 for the financial year of 2024.
Results of the Q4 2024
In the fourth quarter 2024 (1 October - 31 December), the Group carried 1.3 million passengers which is down by 2.2% compared to the same period last year.
The Group's unaudited revenue for the period decreased by 5.3% and amounted to EUR 183.5 million (EUR 193.7 million in October-December 2023). Unaudited EBITDA was EUR 25.7 million (EUR 36.8 million in October-December 2023) and unaudited net loss was EUR 5.2 million (net profit of EUR 2.2 million in October-December 2023).
The financial results of Q4 2024 were impacted by the following factors:
- Low consumer and business confidence in the home markets and geopolitical tensions.
- Two vessels in lay-up including the cruise vessel Romantika the charter agreement of which was prematurely terminated in September 2023 and MV Superfast IX (formerly Atlantic Vision) the charter agreement of which ended in May 2024. The Group has not been able to find profitable operations for both vessels in lay-up.
- Repayment of long-term loans and related interest expenses in the amount of EUR 34.5 million.
- In October 2024, the charter agreement of the cruise ferry Galaxy I was extended by 12 months until October 2025 with the option of extending the agreement at the end of the agreement period by another 6+6 months.
Key Figures
| For the period | Q4 2024 | Q4 2023 | Q4 2022 | Jan-Dec 2024 | Jan-Dec 2023 | Jan-Dec 2022 |
| Revenue (EUR million) | 183.5 | 193.7 | 203.7 | 785.8 | 835.3 | 771.4 |
| Gross profit/loss (EUR million) | 25.9 | 34.9 | 41.8 | 153.6 | 203.8 | 113.5 |
| EBITDA¹ (EUR million) | 25.7 | 36.8 | 50.4 | 175.2 | 214.5 | 135.8 |
| EBIT¹ (EUR million) | 1.3 | 11.4 | 23.5 | 77.4 | 113.3 | 37.7 |
| Net profit/loss for the period (EUR million) | -5.2 | 2.2 | 16.7 | 40.3 | 78.9 | 13.9 |
| Depreciation and amortisation (EUR million) | 24.4 | 25.5 | 27.0 | 97.8 | 101.2 | 98.1 |
| Capital expenditures¹ ²(EUR million) | 5.9 | 5.9 | 179.7 | 22.4 | 28.2 | 203.3 |
| Weighted average number of ordinary shares outstanding | 743 569 064 | 743 569 064 | 743 569 064 | 743 569 064 | 743 569 064 | 743 569 064 |
| Earnings/loss per share¹ (EUR) | -0.007 | 0.003 | 0.022 | 0.054 | 0.106 | 0.019 |
| Number of passengers | 1 310 014 | 1 338 921 | 1 296 047 | 5 580 016 | 5 705 600 | 5 462 085 |
| Number of cargo units | 64 606 | 76 198 | 96 052 | 303 234 | 323 990 | 409 769 |
| Average number of employees | 4 844 | 4 879 | 4 948 | 4 964 | 4 879 | 5 023 |
| As at | 31.12.2024 | 30.09.2024 | 30.09.2023 | 31.12.2024 | 31.12.2023 | 31.12.2022 |
| Total assets (EUR million) | 1 463.9 | 1 498.9 | 1 597.4 | 1 463.9 | 1 555.2 | 1 691.6 |
| Total liabilities (EUR million) | 681.6 | 711.5 | 813.7 | 681.6 | 769.5 | 984.7 |
| Interest-bearing liabilities (EUR million) | 556.4 | 588.3 | 684.8 | 556.4 | 649.3 | 853.5 |
| Net debt¹ (EUR million) | 537.7 | 555.7 | 620.4 | 537.7 | 607.3 | 738.6 |
| Net debt to EBITDA¹ | 3.1 | 3.0 | 2.7 | 3.1 | 2.8 | 5.4 |
| Total equity (EUR million) | 782.3 | 787.4 | 783.7 | 782.3 | 785.8 | 706.9 |
| Equity ratio¹ (%) | 53% | 53% | 49% | 53% | 51% | 42% |
| Number of ordinary shares outstanding | 743 569 064 | 743 569 064 | 743 569 064 | 743 569 064 | 743 569 064 | 743 569 064 |
| Shareholders' equity per share (EUR) | 1.05 | 1.06 | 1.05 | 1.05 | 1.06 | 0.95 |
| Ratios¹ | Q4 2024 | Q4 2023 | Q4 2022 | Jan-Dec 2024 | Jan-Dec 2023 | Jan-Dec 2022 |
| Gross margin (%) | 14.1% | 18.0% | 20.5% | 19.5% | 24.4% | 14.7% |
| EBITDA margin (%) | 14.0% | 19.0% | 24.8% | 22.3% | 25.7% | 17.6% |
| EBIT margin (%) | 0.7% | 5.9% | 11.5% | 9.9% | 13.6% | 4.9% |
| Net profit/loss margin (%) | -2.8% | 1.1% | 8.2% | 5.1% | 9.4% | 1.8% |
| ROA (%) | 5.1% | 7.0% | 2.4% | 5.1% | 7.0% | 2.4% |
| ROE (%) | 5.2% | 10.6% | 2.1% | 5.2% | 10.6% | 2.1% |
| ROCE (%) | 6.0% | 8.4% | 3.1% | 6.0% | 8.4% | 3.1% |
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
| Unaudited, in thousands of EUR | Q4 2024 | Q4 2023 | Jan-Dec 2024 | Jan-Dec 2023 |
| Revenue | 183 505 | 193 737 | 785 822 | 835 325 |
| Cost of sales | -157 571 | -158 809 | -632 266 | -631 491 |
| Gross profit/loss | 25 934 | 34 928 | 153 556 | 203 834 |
| Sales and marketing expenses | -11 502 | -11 381 | -43 849 | -42 162 |
| Administrative expenses | -13 837 | -14 978 | -52 846 | -52 472 |
| Impairment loss on receivables | ||||
| Other operating income | 816 | 2 893 | 21 684 | 4 275 |
| Other operating expenses | -114 | -103 | -1 115 | -171 |
| Result from operating activities | 1 297 | 11 359 | 77 430 | 113 304 |
| Finance income | 305 | 528 | 938 | 1 332 |
| Finance costs | -6 822 | -10 061 | -29 198 | -36 864 |
| Share of profit/loss of equity-accounted investees | 0 | -75 | 0 | -75 |
| Profit/loss before income tax | -5 220 | 1 751 | 49 170 | 77 697 |
| Income tax | 0 | 413 | -8 896 | 1 175 |
| Net profit/loss for the period | -5 220 | 2 164 | 40 274 | 78 872 |
| Net profit/loss for the period attributable to equity holders of the Parent | -5 220 | 2 164 | 40 274 | 78 872 |
| Other comprehensive income | ||||
| Items that may be reclassified to profit or loss | ||||
| Exchange differences on translating foreign operations | -26 | -201 | 332 | -172 |
| Other comprehensive income for the period | -26 | -201 | 332 | -172 |
| Total comprehensive profit/loss for the period | -5 246 | 1 963 | 40 606 | 78 700 |
| Total comprehensive profit/loss for the period attributable to equity holders of the Parent | -5 246 | 1 963 | 40 606 | 78 700 |
| EPS (in EUR) | -0.007 | 0.003 | 0.054 | 0.106 |
| Diluted EPS (in EUR) | -0.007 | 0.003 | 0.054 | 0.106 |
Consolidated statement of financial position
| Unaudited, in thousands of EUR | 31.12.2024 | 31.12.2023 |
| ASSETS | ||
| Cash and cash equivalents | 18 705 | 41 921 |
| Trade and other receivables | 25 268 | 31 766 |
| Prepayments | 8 764 | 7 661 |
| Prepaid income tax | 0 | 193 |
| Inventories | 48 083 | 41 411 |
| Short-term intangible assets | 6 901 | 0 |
| Current assets | 107 721 | 122 952 |
| Investments in equity-accounted investees | 0 | 0 |
| Other financial assets and prepayments | 518 | 4 794 |
| Deferred income tax assets | 21 840 | 21 840 |
| Investment property | 300 | 300 |
| Property, plant and equipment | 1 310 000 | 1 377 664 |
| Intangible assets | 23 562 | 27 671 |
| Non-current assets | 1 356 220 | 1 432 269 |
| TOTAL ASSETS | 1 463 941 | 1 555 221 |
| LIABILITIES AND EQUITY | ||
| Interest-bearing loans and borrowings | 104 549 | 104 097 |
| Trade and other payables | 95 146 | 85 406 |
| Payables to owners | 6 | 6 |
| Income tax liability | 7 | 10 |
| Deferred income | 30 102 | 34 788 |
| Current liabilities | 229 810 | 224 307 |
| Interest-bearing loans and borrowings | 451 825 | 545 160 |
| Non-current liabilities | 451 825 | 545 160 |
| Total liabilities | 681 635 | 769 467 |
| Share capital | 349 477 | 349 477 |
| Share premium | 663 | 663 |
| Reserves | 65 901 | 67 056 |
| Retained earnings | 366 265 | 368 558 |
| Equity attributable to equity holders of the Parent | 782 306 | 785 754 |
| Total equity | 782 306 | 785 754 |
| TOTAL LIABILITIES AND EQUITY | 1 463 941 | 1 555 221 |
Consolidated statement of cash flows
| Unaudited, in thousands of EUR | Q4 2024 | Q4 2023 | Jan-Dec 2024 | Jan-Dec 2023 |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||
| Net profit/loss for the period | -5 220 | 2 164 | 40 274 | 78 872 |
| Adjustments | 30 975 | 34 603 | 117 243 | 135 324 |
| Changes in: | ||||
| Receivables and prepayments related to operating activities | 7 273 | 6 622 | 5 705 | 1 340 |
| Inventories | -4 638 | -1 653 | -13 573 | -1 446 |
| Liabilities related to operating activities | 2 535 | -7 754 | 8 505 | -10 457 |
| Changes in assets and liabilities | 5 170 | -2 785 | 637 | -10 563 |
| Cash generated from operating activities | 30 925 | 33 982 | 158 154 | 203 633 |
| Income tax repaid/paid | 11 | -75 | 164 | -186 |
| NET CASH FROM/USED OPERATING ACTIVITIES | 30 936 | 33 907 | 158 318 | 203 447 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||
| Purchase of property, plant, equipment and intangible assets | -5 923 | -5 882 | -22 260 | -28 131 |
| Proceeds from disposals of property, plant, equipment | 39 | 369 | 24 555 | 613 |
| Interest received | 305 | 528 | 938 | 1 332 |
| NET CASH USED IN INVESTING ACTIVITIES | -5 579 | -4 985 | 3 233 | -26 186 |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Proceeds from loans received | 0 | 59 972 | 0 | 59 972 |
| Repayment of loans received | -27 553 | -95 954 | -87 045 | -251 431 |
| Change in overdraft | 0 | 0 | 0 | -15 |
| Payment of lease liabilities | -4 772 | -4 494 | -18 659 | -21 519 |
| Interest paid | -6 936 | -7 615 | -29 095 | -32 827 |
| Payment of transaction costs related to loans | 0 | -3 343 | -450 | -4 455 |
| Dividends paid | 0 | 0 | -44 614 | 0 |
| Income tax on dividends paid | 0 | 0 | -4 904 | 0 |
| NET CASH FROM/USED IN FINANCING ACTIVITIES | -39 261 | -51 434 | -184 767 | -250 275 |
| TOTAL NET CASH FLOW | -13 904 | -22 512 | -23 216 | -73 014 |
| Cash and cash equivalents at the beginning of period | 32 609 | 64 433 | 41 921 | 114 935 |
| Change in cash and cash equivalents | -13 904 | -22 512 | -23 216 | -73 014 |
| Cash and cash equivalents at the end of period | 18 705 | 41 921 | 18 705 | 41 921 |
Anneli Simm
Investor Relations Manager
AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail: anneli.simm@tallink.ee
Phone: +372 56157170
