Tallinn, 2017-02-28 08:50 CET (GLOBE NEWSWIRE) -- AS Tallink Grupp Unaudited Consolidated Interim Report Q4 2016
AS Tallink Grupp and its subsidiaries (the Group) carried an all-time high number, total of 9.5 million passengers in the 2016 financial year (2015: 9.0 million) which is 5.4% more compared to the year before. The number of cargo units transported increased by 6.5% and the number of passenger vehicles transported increased by 4.2% compared to previous financial year. The Group’s unaudited consolidated revenue amounted to EUR 937.8 million (2015: EUR 945.2 million) and EBITDA to EUR 149.5 million (2015: EUR 181.4 million). Unaudited net profit amounted to EUR 44.1 million or EUR 0.07 per share (2015: EUR 59.1 million or EUR 0.09 per share).
In the 2016 financial year the revenue structure of the Group changed compared to previous financial year. After the conclusion of the cruise ferry Silja Europa charter contract in February 2016 the Group increased the capacity of its route operations by deploying the ship on Tallinn-Helsinki route. Therefore, in 2016 the reduction of charter related revenue was expected and by increasing the capacity of its core route operations the Group increased passenger number to all-time high level and earned comparable total annual revenue. Driven by the higher total passenger number the shops and restaurant revenue increased by EUR 20.9 million to EUR 521.5 million (2015: EUR 500.6 million) and the ticket revenue increased by EUR 8.1 million to EUR 236.0 million (2015: 228.0 million). The revenue from leases of vessels (chartering) declined by EUR 28.0 million to EUR 25.5 million. Due to the changes in chartering and routes’ operating capacity the Group´s profits declined as higher profitability charter activity was replaced by route operations that involve higher ship operating costs. In addition the Group incurred charter cost of fast ferry Superstar, which was sold in the end of 2015 and was chartered back until the delivery of new fast ferry Megastar.
The Estonia-Finland route passenger number increased in 2016 by 7.0% to a record level of 5.1 million passengers carried annually (2015: 4.7 million), the number of cargo units increased by 5.9%. Following the higher capacity and passenger number, the Group increased its market share on the route by 2% to 58%. The segment revenue increased by 4.5%, at the same time the segment result fell by 16.4% to EUR 75.4 million (2015: EUR 90.3 million). The segment result declined mainly due to the higher ship operating cost from additional ship, Silja Europa in operation and charter cost of fast ferry Superstar.
The Finland-Sweden routes passenger number increased by 2.1%, the cargo units transported increased by 7.6% and segment revenue increased by 1.2%. The segment result fell by 11.0% to EUR 15.3 million (2015: EUR 17.2 million) mainly due to higher seamen personnel cost related to the change of the taxation under Finnish Seamen’s Pensions Act.
The positive development of the Estonia-Sweden and Latvia-Sweden routes throughout the 2016 financial year resulted in higher passenger number, revenue and segment result. The Estonia-Sweden routes segment revenue increased by 5.5% and the segment result increased by 81.5% to EUR 11.6 million (2015: EUR 6.4 million). The Latvia-Sweden route segment revenue increased by 6.2% and segment result improved by 29.9% to EUR 6.9 million (2015: EUR 5.3 million).
In the 2016 financial year the Group’s investments amounted to EUR 68.9 million. Majority of investments were done to the renewal and upgrade of the fleet: down payment for the new LNG fast ferry Megastar, large scale renovation of cruise ferry Silja Europa, upgrade of number of restaurants, shops and cabins in Group fleets older vessels. Investments were made also to the development of online booking and sales systems.
In June 2016 the shareholders annual general meeting decided to pay a dividend of EUR 0.02 per share from financial year 2015 net profit. The total dividend amount of EUR 13.4 million was paid out on 05 July 2016. In addition to dividend payment the annual general meeting decided the share capital reduction in amount of EUR 40.2 million or EUR 0.06 per share. The share capital reduction payments to the shareholders were made on 23 December 2016.
The management board targets to distribute at least 50% of the net profit, calculated over the long term, as dividends or capital repayment, taking however the Group’s financial position into account. The management estimates that for the coming years the distribution per share will be at least EUR 0.02 or higher.
To the annual shareholders’ meeting in 2017 the management board will propose dividend of EUR 0.03 per share from financial year 2016 net profit.
The total liquidity, cash and unused credit facilities, at the end of the third quarter was EUR 113.8 million providing a strong financial position for sustainable operations. The Group had EUR 78.8 million in cash and equivalents and the total of unused credit lines were at EUR 35.0 million.
In the fourth quarter (1 October - 31 December) of the 2016 financial year the Group carried 2.2 million passengers which is 4.7% more compared to the fourth quarter last year, the unaudited revenue decreased by 0.7% to the total of EUR 226.1 million. The fourth quarter EBITDA was EUR 29.9 million which is at the same level compared to the fourth quarter of the last year.
The Estonia-Finland route’s fourth quarter revenue increased by 3.1% compared to same period last year, the increase is driven by a 3.1% growth in the passenger number. The number of cargo units transported increased by 8.3%.
The Finland-Sweden routes fourth quarter revenue increased by 4.0% compared to same period last year, the increase is driven by a 5.4% growth in the passenger number as there were more departures compared to same period last year. The number of cargo units transported increased by 14.2%.
The Estonia-Sweden route revenue and passenger number were at the same level compared to fourth quarter last year, cargo volumes increased by 5.4%. The Latvia-Sweden route revenue increased by 18.4%, passenger number by 27.9% and cargo volume increased by 13.1% compared to fourth quarter last year. The increase in revenue and volumes was supported by the added capacity on the route.
The Group’s restaurant and shop sales increased by 2.2% or EUR 2.8 million and ticket revenue increased by 3.9% or EUR 2.0 million in the fourth quarter compared to the same period last year. Although the sales growth was driven by the growth of the passenger number the average on-board revenue per passenger was slightly lower compared to same period last year. The revenue from the chartered out vessels has reduced in the fourth quarter compared to the same period last year due to fewer ships in charter.
In the fourth quarter of the 2016 financial year the Group’s gross profit decreased by EUR 9.1 million compared to the same period last year and amounted to EUR 41.1 million. The fourth quarter EBITDA was EUR 29.9 million which is on same level compared to same period last year. The fourth quarter profitability was impacted by less revenue from chartering, higher marketing costs, cost of charter of the fast ferry Superstar and higher ships operating costs.
In the fourth quarter the Group’s net debt increased by EUR 22.2 million to a total of EUR 480.1 million and the net debt to EBITDA ratio was a solid 3.2 at the end of fourth quarter. The fourth quarter interest cost was EUR 5.0 million lower compared to same period last year from regular repayment of loans, repayment of loans related to sale of ship in December 2015 and one-off cost of premature termination of loan contract related to the sale of ship. Combined with gain from revaluation of cross currency and interest derivatives, the total finance costs decreased by EUR 11.1 million compared to the fourth quarter last year.
The unaudited net profit for the fourth quarter of the 2016 financial year was EUR 3.5 million or EUR 0.005 per share compared to the loss of EUR 1.3 million or EUR -0.002 per share in the same period last year.
Q4 KEY FIGURES
|
2016 Oct-Dec |
2015 Oct-Dec |
Change | |||
| Revenue | EUR million | 226.1 | 227.6 | -0.7% | |
| Gross profit | EUR million | 41.1 | 50.2 | -18.2% | |
| Gross margin | 18.2% | 22.0% | |||
| EBITDA | EUR million | 29.9 | 29.9 | 0.0% | |
| EBITDA margin | 13.2% | 13.1% | |||
| Net profit for the period | EUR million | 3.5 | -1.3 | 364.5% | |
| Net profit margin | 1.6% | -0.6% | |||
| Depreciation and amortization | EUR million | 19.6 | 19.4 | 0.9% | |
| Investments | EUR million | 22.5 | 13.8 | 63.0% | |
| Weighted average number of ordinary shares outstanding 1 | 669,882,040 | 669,882,040 | 0.0% | ||
| Earnings per share | EUR | 0.005 | -0.002 | 364.5% | |
| Number of passengers | 2,226,283 | 2,125,361 | 4.7% | ||
| Number of cargo units | 85,349 | 78,136 | 9.2% | ||
| Average number of employees | 7,061 | 6,769 | 4.3% | ||
| 31.12.2016 | 30.09.2016 | ||||
| Total assets | EUR million | 1,539.0 | 1,552.0 | -0.8% | |
| Interest-bearing liabilities | EUR million | 558.9 | 546.7 | 2.2% | |
| Net debt | EUR million | 480.1 | 457.9 | 4.9% | |
| Total equity | EUR million | 813.6 | 811.2 | 0.3% | |
| Equity ratio | 52.9% | 52.3% | |||
| Net debt to EBITDA | 3.2 | 3.1 | |||
| Number of ordinary shares outstanding 1 | 669,882,040 | 669,882,040 | 0.0% | ||
| Shareholders’ equity per share | EUR | 1.21 | 1.21 | 0.3% | |
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 euros) | 01.10.2016- | 01.10.2015- | 01.01.2016- | 01.01.2015- | |
| 31.12.2016 | 31.12.2015 | 31.12.2016 | 31.12.2015 | ||
| Revenue (Note 3) | 226,135 | 227,631 | 937,805 | 945,203 | |
| Cost of sales | -185,069 | -177,439 | -745,223 | -721,780 | |
| Gross profit | 41,066 | 50,192 | 192,582 | 223,423 | |
| Sales and marketing expenses | -19,102 | -16,777 | -72,268 | -63,578 | |
| Administrative expenses | -12,148 | -13,001 | -50,973 | -47,311 | |
| Other operating income | 697 | -377 | 2,450 | 983 | |
| Other operating expenses | -178 | -9,517 | -184 | -10,254 | |
| Result from operating activities | 10,335 | 10,520 | 71,607 | 103,263 | |
| Finance income (Note 4) | 1,754 | 3,301 | 10,514 | 12,808 | |
| Finance costs (Note 4) | -7,604 | -14,317 | -37,289 | -46,964 | |
| Share of profit of equity–accounted investees | 13 | 64 | 13 | 64 | |
| Profit/-loss before income tax | 4,498 | -432 | 44,845 | 69,171 | |
| Income tax | -986 | -896 | -741 | -10,101 | |
| Net profit/-loss for the period | 3,512 | -1,328 | 44,104 | 59,070 | |
| Other comprehensive income/-expense | |||||
| Items that may be reclassified to profit or loss | |||||
| Exchange differences on translating foreign operations | -205 | 416 | -469 | 160 | |
| Other comprehensive income/-expense for the period | -205 | 416 | -469 | 160 | |
| Total comprehensive income/-expense for the period | 3,307 | -912 | 43,635 | 59,230 | |
| Earnings per share (in EUR per share) | |||||
| - basic (Note 5) | 0.005 | -0.002 | 0.065 | 0.088 | |
| - diluted (Note 5) | 0.005 | -0.002 | 0.065 | 0.088 | |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited, in thousands of euros)
| ASSETS | 31.12.2016 | 31.12.2015 | |
| Current assets | |||
| Cash and cash equivalents | 78,773 | 81,976 | |
| Trade and other receivables | 38,674 | 36,583 | |
| Prepayments | 7,926 | 5,274 | |
| Income tax prepayment | 91 | 1,224 | |
| Inventories | 38,719 | 29,197 | |
| Total current assets | 164,183 | 154,254 | |
| Non-current assets | |||
| Investments in equity-accounted investees | 363 | 350 | |
| Other financial assets | 348 | 308 | |
| Deferred income tax assets | 18,791 | 19,410 | |
| Investment property | 300 | 300 | |
| Property, plant and equipment (Note 7) | 1,304,897 | 1,311,418 | |
| Intangible assets (Note 8) | 50,127 | 52,726 | |
| Total non-current assets | 1,374,826 | 1,384,512 | |
| TOTAL ASSETS | 1,539,009 | 1,538,766 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Interest bearing loans and borrowings (Note 9) | 106,112 | 81,889 | |
| Trade and other payables | 103,280 | 88,480 | |
| Payables to shareholders (Note 10) | 4 | 0 | |
| Income tax liability | 10 | 4,567 | |
| Deferred income | 30,895 | 28,906 | |
| Total current liabilities | 240,301 | 203,842 | |
| Non-current liabilities | |||
| Interest bearing loans and borrowings (Note 9) | 452,793 | 467,447 | |
| Derivatives (Note 6) | 32,359 | 42,863 | |
| Other payables | 0 | 192 | |
| Total non-current liabilities | 485,152 | 510,502 | |
| TOTAL LIABILITIES | 725,453 | 714,344 | |
| EQUITY | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 361,736 | 404,290 | |
| Share premium | 639 | 639 | |
| Reserves | 68,774 | 65,083 | |
| Retained earnings | 382,407 | 354,410 | |
| Total equity attributable to equity holders of the parent | 813,556 | 824,422 | |
| TOTAL EQUITY | 813,556 | 824,422 | |
| TOTAL LIABILITIES AND EQUITY | 1,539,009 | 1,538,766 | |
CONSOLIDATED CASH FLOW STATEMENT
| (unaudited, in thousands of euros) | 01.01.2016- | 01.01.2015- | |
| 31.12.2016 | 31.12.2015 | ||
| Cash flows from operating activities | |||
| Net profit/-loss for the period | 44,104 | 59,070 | |
| Adjustments | 104,247 | 132,851 | |
| Changes in receivables and prepayments related to operating activities | -4,969 | 1,463 | |
| Changes in inventories | -9,522 | 2,118 | |
| Changes in liabilities related to operating activities | 16,785 | -4,139 | |
| Income tax paid | -3,265 | 553 | |
| 147,380 | 191,916 | ||
| Cash flow from/used in investing activities | |||
| Purchase of property, plant and equipment and intangible assets (Notes 7, 8, 9) | -68,638 | -43,629 | |
| Proceeds from disposals of property, plant and equipment | 169 | 115,370 | |
| Proceeds from other financial assets | 0 | 229 | |
| Interest received | 74 | 74 | |
| -68,395 | 72,044 | ||
| Cash flows used in financing activities | |||
| Proceeds from loans (Note 9) | 280,000 | 0 | |
| Repayment of loans (Note 9) | -313,524 | -133,263 | |
| Change in overdraft (Note 9) | 36,713 | -59,052 | |
| Payment of finance lease liabilities (Note 9) | -99 | -80 | |
| Interest paid | -24,083 | -33,210 | |
| Payments for settlement of derivatives | -4,289 | -4,045 | |
| Payments of transaction costs related to loans | -2,989 | -1,429 | |
| Dividend paid (Note 12) | -13,398 | -13,398 | |
| Income tax on dividends paid | -330 | -2,818 | |
| Reduction of share capital (Note 10) | -40,189 | 0 | |
| -82,188 | -247,295 | ||
| TOTAL NET CASH FLOW | -3,203 | 16,665 | |
| Cash and cash equivalents: | |||
| - at the beginning of period | 81,976 | 65,311 | |
| - increase (+) / decrease (-) | -3,203 | 16,665 | |
| - at the end of period | 78,773 | 81,976 | |
Veiko Haavapuu
Finance Director
AS Tallink Grupp
Sadama 5/7
10111 Tallinn, Estonia
Tel. +372 640 9914
E-mail veiko.haavapuu@tallink.ee
