In This Article:
Release Date: April 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tallink Grupp AS (FRA:T5N) has seen growth in its Club One loyalty program, reaching 3.4 million members, which is a valuable asset for marketing and sales promotions.
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The company successfully sold the vessel Star to Irish Ferries, which will reduce costs associated with idle vessels and generate revenue.
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The renovation of the Baltic Princess was well-received, with positive feedback from customers and media, enhancing the vessel's appeal for the next decade.
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Despite a challenging quarter, Tallink Grupp AS (FRA:T5N) managed to maintain a strong equity ratio of 51%, indicating financial stability.
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The company is confident in its ability to pay out dividends as promised, reflecting a commitment to shareholder returns.
Negative Points
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Tallink Grupp AS (FRA:T5N) experienced a 12% decline in passenger numbers compared to the previous year, partly due to the economic slowdown and the timing of Easter.
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The company faced negative impacts from four idle vessels, which incurred substantial costs without generating revenue.
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Cargo volumes decreased, reflecting the broader economic slowdown, particularly affecting the Estonia-Finland segment.
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The first quarter ended with a net loss of 33 million, highlighting the financial challenges faced during this period.
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Tallink Grupp AS (FRA:T5N) reported a negative free cash flow of 22 million in Q1, influenced by high capital expenditures and the absence of asset disposal income.
Q & A Highlights
Q: Is Tallink not terminating a clearly unprofitable and unpromising hotel project because the hotels belong to importers? Is Tallink planning to burn more of the investors' money in this company? A: Tallink has made hotel development decisions by looking at the customer journey as a whole, from purchasing a ferry ticket to staying at our hotels, and there are no plans to change this strategy at this time. - CEO
Q: Would it be possible to quantify the Easter effect on profits? A: It's not possible to quantify it in the profits currently, but the Easter week had 50,000 more passengers compared to the week before, indicating a significant impact. - CEO
Q: Please give an update on the state of the market for selling ships. A: The market is active. We recently sold a vessel to Iris Ferries and are working to find work or sell the remaining laid-up ships. The challenge is balancing the price offered for selling the ships. - CEO