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• Revenue: EUR183.5 million for Q4 2024, a decrease of EUR10.2 million or 5.3% from the same period last year.

• EBITDA: EUR25.7 million for Q4 2024, EUR11 million less than the previous year.

• Net Loss: EUR5.2 million for Q4 2024.

• Full Year Revenue: EUR785.8 million for 2024, a decrease of EUR10.2 million from the previous year.

• Full Year EBITDA: EUR175.2 million for 2024.

• Net Profit: EUR40.3 million for the full year 2024.

• Interest-Bearing Liabilities: Decreased by EUR92.9 million, with net debt reduced from EUR607 million to EUR537 million.

• Capital Expenditure: EUR5.9 million for Q4 2024, primarily for maintenance and repair of vessels.

• Operating Cash Flow: EUR158 million for the full year 2024, with EUR31 million in Q4.

• Dividend Proposal: EUR0.06 per share for 2025.

• Warning! GuruFocus has detected 8 Warning Signs with FRA:T5N.

Release Date: February 20, 2025

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 solid EBITDA of EUR 175 million for the full year 2024, despite challenging economic conditions.

• The company successfully reduced its interest-bearing liabilities by EUR 92.9 million, indicating strong financial management and a focus on deleveraging.

• Tallink Grupp AS maintained a healthy EBITDA margin above 20% for 2024, demonstrating operational efficiency.

• The company proposed a dividend of EUR 0.06 per share, reflecting confidence in its financial stability and commitment to shareholder returns.

• Tallink Grupp AS has a strong balance sheet with an equity-to-asset ratio of 53%, showcasing financial resilience.

Negative Points

• Total revenue for 2024 was EUR 785.8 million, down EUR 10.2 million from the previous year, indicating a slight decline in overall business performance.

• The company faced a net loss of EUR 5.2 million in the fourth quarter, highlighting challenges in achieving profitability during the low season.

• Revenue from restaurant and shop sales decreased by EUR 3.8 million, reflecting lower consumer spending and demand.

• Charter revenues dropped by EUR 5.1 million due to fewer vessels being chartered compared to the previous year.

• The economic environment in the Nordic and Baltic regions remains weak, impacting consumer confidence and demand for Tallink Grupp AS's services.

Q & A Highlights

Q: Could you elaborate on your thinking regarding dividend payouts? Are you trying to keep it stable around the policy EUR0.05, or is it more dependent on individual year's results? A: Paavo Nogene, CEO: The 6% dividend payment is possible due to our strong capitalization, rapid loan repayment, and the fact that we are not making large investment decisions in the coming years due to uncertainties about future ship technologies. Generally, we adhere to the dividend policy unless extraordinary events occur.