• Total Revenue: EUR 232 million in Q3, a 4% decrease from Q3 2023.

• EBITDA: EUR 68 million, down from EUR 82 million in the previous year.

• Net Profit: EUR 37 million, compared to EUR 49 million a year ago.

• Passenger Volume: Over 1.7 million passengers, a 3% decrease from the previous year.

• Cargo Units: Approximately 67,000, a 12% decrease from last year.

• Cargo Revenue: Increased by 1% despite lower volumes.

• Capital Expenses: EUR 6 million, primarily for maintenance and repair.

• Operating Cash Flow: EUR 55 million, a decrease of EUR 5 million from the previous year.

• Net Debt/EBITDA Ratio: 2.98 times, indicating a healthy level.

• Equity Ratio: Increased to 53% due to lower debt.

• Dividends Paid: EUR 0.06 per share, affecting cash flow by EUR 49 million.

• Warning! GuruFocus has detected 6 Warning Signs with FRA:T5N.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Tallink Grupp AS (FRA:T5N) reported a growth in its global loyalty program, Club One, with membership increasing from 3.2 million to 3.3 million.

• Despite a decline in cargo volumes, cargo revenue increased by 1% compared to Q3 2023.

• The company maintained a healthy EBITDA margin of 30% for Q3 2024.

• Tallink Grupp AS successfully extended the charter of the Galaxy vessel in Holland until October 2025, with an option to extend further.

• The company has been producing positive quarterly net profit results for six consecutive quarters, indicating financial stability.

Negative Points

• Tallink Grupp AS experienced a 3% decline in passenger numbers and a 12% decrease in cargo units compared to the previous year.

• Total revenue for Q3 2024 was EUR 232 million, a 4% decrease from Q3 2023.

• EBITDA for Q3 2024 was EUR 68 million, down from EUR 82 million in the same period last year, partly due to two vessels being in layup.

• Net profit for the quarter was EUR 37 million, a decrease from EUR 49 million a year ago.

• The economic situation in key markets like Estonia and Finland remains weak, affecting overall performance and consumer confidence.

Q & A Highlights

Q: Will there be a cruise vessel operating the Helsinki-Tallinn route in summer 2025? A: Yes, Victoria will continue operating on the Helsinki-Tallinn route during the summer period, making extra cruises to Wisby as it did this year. We are not planning to move Victoria back to the Stockholm route for the summer. - Paavo Nogene, Chairman of the Management Board

Q: What are the plans to solve the problem with the decrease in passenger flow? A: The economic situation in our home markets is fragile, but we are seeing some recovery in passenger segments from other continents. Our teams are working hard to increase passenger numbers. - Paavo Nogene, Chairman of the Management Board