In This Article:
-
Revenue: EUR210 million, a decrease of 8.5% year-on-year.
-
EBITDA: EUR46.6 million.
-
Net Profit: EUR6.1 million.
-
Passenger Volume: Decreased by 5.8%.
-
Net Debt: Decreased by EUR32.1 million from the first quarter, totaling EUR549 million.
-
Dividend Tax: EUR9.2 million recorded in the second quarter.
-
EBITDA Margin: 22.2%.
-
Free Cash Flow: EUR51 million.
-
Interest-Bearing Liabilities: EUR620 million.
-
Unused Overdraft: EUR75 million.
Release Date: July 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Tallink Grupp AS (FRA:T5N) successfully reduced its net debt by EUR116 million year-over-year, indicating effective deleveraging efforts.
-
The company maintained a positive EBITDA of EUR81 million for the first half of 2024, showcasing operational profitability.
-
Tallink Grupp AS (FRA:T5N) generated a positive cash flow of EUR56 million, demonstrating strong cash management.
-
The Estonia-Finland route showed slight revenue growth, contributing positively to the overall financial performance.
-
The company has a healthy EBITDA leverage ratio of 2.7x, reflecting a strong financial position.
Negative Points
-
Revenue for the second quarter of 2024 decreased by 8.5% year-over-year, primarily due to fewer vessels being chartered out and decreased passenger volume.
-
Passenger numbers declined by 5.8%, impacting overall revenue generation.
-
The Finland-Sweden route experienced a significant revenue drop of EUR11.7 million, highlighting challenges in this segment.
-
Net profit was affected by a EUR9.2 million dividend tax, reducing profitability.
-
Total equity decreased by almost 5% due to dividend payments, indicating a reduction in shareholder value.
Q & A Highlights
Q: Is Tallink planning to open new routes, such as to Poland or Germany? A: Currently, Tallink is not planning to open any new regular routes. The company continuously analyzes potential opportunities but prioritizes profitability. Special summer cruises, like those to Visby, are successful, but no new year-round routes are planned at this time. - Paavo Nogene, Chairman of the Management Board
Q: Does Tallink plan to collaborate with or acquire other companies? A: Tallink is open to new opportunities if they are attractive and beneficial. However, the company is cautious about acquisitions, especially those involving routes or companies that have been inactive for a long time. - Paavo Nogene, Chairman of the Management Board
Q: What is the company's current fuel price risk management policy? A: Tallink has not fixed any fuel prices for the third quarter and is purchasing fuel at market terms, using the TTF Rotterdam stock price as a reference. - Paavo Nogene, Chairman of the Management Board