AS Tallink Grupp Unaudited Consolidated Interim Report for the Q4 and 12 months of 2024

The results of AS Tallink Grupp for the Q4 and 12 months 2024 will be introduced at an Investor Webinar held today at 12:00 (EEST). To participate, please join via the following link; we kindly ask participants to provide their questions latest by 11:00 am by email to: investor@tallink.ee. Further details are available in a previously published announcement.

In the financial year 2024 (1 January – 31 December), AS Tallink Grupp and its subsidiaries (hereinafter referred to as "the Group”) carried 5 580 016 passengers, which is 2.2% less than in the financial year 2023. The number of cargo units transported decreased by 6.4% compared to the previous year amounting to 303 234. The number of passenger vehicles was down by 7.5% year-on-year and amounted to 777 592.

The Group’s unaudited consolidated revenue amounted to EUR 785.8 million (EUR 835.3 million in the financial year 2023), down by 5.9% year-on-year. Unaudited EBITDA was EUR 175.2 million (EUR 214.5 million in the financial year 2023) and the unaudited net profit for the period was EUR 40.3 million (EUR 78.9 million in the financial year 2023).

The following operational factors impacted the Group’s revenue and operating results in the financial year 2024:

• Demand continued to be affected by low consumer and business confidence levels, the economic challenges in the Group’s core markets and global geopolitical tensions.
• As at the end of the financial year, the Group operated 14 vessels including 2 shuttle vessels, 2 cargo vessels, 5 operating cruise ferries, 3 vessels that were chartered out (4 at the beginning of the year) and 2 vessels that were in lay-up.
• The Group extended the charter agreement of the cruise ferry Galaxy I until October 2025 with the extension option of 6+6 months and signed an agreement for chartering of the cruise ferry Silja Europa until June 2025 with the extension option of 7+6+6 months at the end of the agreement term.
• The Group sold the cruise ferry Isabelle in January 2024.
• The Group operated 3 hotels in Tallinn and 1 in Riga.
• The Group’s net debt was EUR 537.7 million as at the end of the financial year (EUR 555.7 million as at 30 September 2024) bringing the net debt to EBITDA ratio to 3.07 as at 31 December 2024.
• In the financial year 2024, total loan repayment and related interest expense amounted to EUR 116.1 million.
• Payment of dividends in the amount of EUR 44.6 million and related income tax expense in the amount of EUR 9.2 million.
• As a result of the voluntary takeover bid, the shareholding of AS Infortar, the core shareholder of the Group, increased from 46.8% to 68.5% as at 9 August 2024. AS Tallink Grupp continues as an independent listed company also after AS Infortar become the majority shareholder of the Group.
• The Group continues to focus on cost efficiencies from the previously implemented measures and maintaining profitable operations on its core routes.
• The Group regularly monitors the developments on its core routes including the capacity of each route and continues to look for new chartering options for vessels not used on the main routes and to work on extending the existing chartering agreements.

Sales and Results by Segments

In the financial year 2024, the Group’s total revenue decreased by EUR 49.5 million to EUR 785.8 million compared to EUR 835.3 million in the financial year 2023. 

Revenue from route operations (the Group’s core business) decreased by EUR 6.9 million to EUR 638.9 million compared to the financial year 2023. The segment result from route operations (the Group’s core business) amounted to EUR 81.5 million, down by EUR 25.7 million compared to the financial year 2023.

The number of passengers carried on the Estonia-Finland route increased by 2.5% in year-on-year comparison. The number of transported cargo units decreased by 5.1%. Revenue from the Estonia-Finland route increased by EUR 14.8 million to EUR 312.8 million and the segment result increased by EUR 2.3 million to EUR 81.3 million, year-on-year. The segment reflects the operations of two shuttle vessels, MyStar and Megastar, and the cruise ferry Victoria I except for from 31 May 2024 until 31 August 2024 when the Tallinn-Helsinki route was operated by two shuttle vessels as the cruise ferry Victoria I operated the Tallinn-Stockholm route.

In the financial year 2024, the year-on-year decrease in the number of passengers on Finland-Sweden routes was 15.4%. The number of transported cargo units increased by 3.4%. The routes’ revenue decreased by EUR 28.3 million to EUR 228.7 million and the segment result decreased by EUR 20.9 million to EUR 2.8 million, year-on-year. The segment reflects the operations of one cruise ferry on the Turku-Kapellskär route until 31 May 2024 and on the Turku-Stockholm route from 31 May 2024 as well as two cruise ferries on the Helsinki-Stockholm route.

On Estonia-Sweden routes the number of carried passengers increased by 8.0% while the number of transported cargo units decreased by 19.6% compared to the financial year 2023. Year-on-year, the revenue of Estonia-Sweden routes increased by EUR 6.6 million to EUR 97.4 million. The segment result declined by EUR 7.1 million to a loss of EUR 2.6 million. Estonia-Sweden routes reflect the operation of two cargo vessels on the Paldiski-Kapellskär route and one cruise ferry on the Tallinn-Stockholm route. However, during the summer peak season from 31 May to 31 August 2024 the Tallinn-Stockholm route was operated in addition to cargo vessels with two cruise ferries – Victoria I and Baltic Queen.

Revenue from the segment Other decreased by a total of EUR 43.2 million and amounted to EUR 152.8 million. The decrease was mainly driven by less vessels on charter. As at the end of the financial year 2024, the Group had 3 vessels on charter (end of the financial year 2023: 5 vessels on charter).

At the end of the financial year 2024, the following vessels were chartered out:

• The shuttle vessel James Joyce (formerly Star) was chartered out from 5 May 2023 for 20 months with an option to extend the charter by 2+2 years and an option to purchase the vessel. As the charterer decided not to use the extension option the agreement expired in January 2025. Starting from February 2025 the shuttle vessel operates the Paldiski-Kapellskär route.
• The cruise ferry Galaxy I was chartered out in September 2022. In October 2024, the agreement was extended by 12 months until October 2025 with the option of extending the agreement at the end of the agreement period by 6+6 months.
• The cruise ferry Silja Europa was chartered out in August 2022. The new charter agreement from December 2024 is effective from 1 January 2025 for six months. The agreement includes the option of extending the agreement at the end of the agreement period by another 7+6+6 moths.

Earnings

In the financial year 2024, the Group’s gross profit declined by EUR 50.3 million to EUR 153.6 million compared to EUR 203.8 million in the financial year 2023. EBITDA declined by EUR 39.3 million and amounted to EUR 175.2 million.

Amortisation and depreciation expense decreased by EUR 3.5 million to EUR 97.8 million year-on-year.

As a result of decreased outstanding loan balance and declining interest rates net finance costs declined by EUR 7.3 million year-on-year to EUR 28.3 million in the financial year 2024 (EUR 35.5 million in the financial year 2023).

The Group’s unaudited net profit for the financial year 2024 was EUR 40.3 million or EUR 0.054 per share compared to EUR 78.9 million or EUR 0.106 per share in the financial year 2023.

Investments

The Group’s investments in the financial year 2024 amounted to EUR 22.4 million (EUR 28.2 million in the financial year 2023). Main investments in vessels included maintenance and repair works i.e., technical works as well as interior upgrades. The Group also continued to invest in the improvement of its IT systems.

Financial Position

At the end of the financial year 2024, the Group’s net debt amounted to EUR 537.7 million, down by EUR 18.0 million compared to the end of third quarter of 2024. The net debt to EBITDA ratio was 3.07 at the reporting date (2.98 as at 30 September 2024).

As at 31 December 2024, the Group’s cash and cash equivalents amounted to EUR 18.7 million (EUR 32.6 million as at 30 September 2024) and the Group had EUR 75.0 million in unused credit lines (EUR 75.0 million as at 30 September 2024). The total liquidity buffer (cash, cash equivalents and unused credit facilities) amounted to EUR 93.7 million (EUR 107.6 million as at 30 September 2024).

The decline in cash and cash equivalents in the financial year 2024 was driven by the payment of dividends (EUR 44.6 million) and related income tax (EUR 4.9 million) as well as the repayment of loans and related interest expense (EUR 116.1 million). In the financial year 2023 the net repayment of loans amounted to EUR 189.6 million.

Dividends

In 2018, the Group adopted a dividend policy subject to which dividends of a minimum amount of EUR 0.05 per share would be paid if the economic performance enables it.

The Annual General Meeting of Shareholders held on 7 May 2024 adopted a resolution to pay dividends of EUR 0.06 per share for the financial year of 2023. The dividends in the amount of EUR 44.6 million were paid out on 3 July 2024.

Concorded with the Supervisory Board of the Group, the Management Board of the Group has decided to prepare a proposal to the General Meeting of Shareholders to pay a dividend of 6 cents per share in 2025 for the financial year of 2024.

Results of the Q4 2024

In the fourth quarter 2024 (1 October – 31 December), the Group carried 1.3 million passengers which is down by 2.2% compared to the same period last year.

The Group’s unaudited revenue for the period decreased by 5.3% and amounted to EUR 183.5 million (EUR 193.7 million in October-December 2023). Unaudited EBITDA was EUR 25.7 million (EUR 36.8 million in October-December 2023) and unaudited net loss was EUR 5.2 million (net profit of EUR 2.2 million in October-December 2023).

The financial results of Q4 2024 were impacted by the following factors:

• Low consumer and business confidence in the home markets and geopolitical tensions.
• Two vessels in lay-up including the cruise vessel Romantika the charter agreement of which was prematurely terminated in September 2023 and MV Superfast IX (formerly Atlantic Vision) the charter agreement of which ended in May 2024. The Group has not been able to find profitable operations for both vessels in lay-up.
• Repayment of long-term loans and related interest expenses in the amount of EUR 34.5 million.
• In October 2024, the charter agreement of the cruise ferry Galaxy I was extended by 12 months until October 2025 with the option of extending the agreement at the end of the agreement period by another 6+6 months.

Key Figures

For the period	Q4 2024	Q4 2023	Q4 2022	Jan-Dec 2024	Jan-Dec 2023	Jan-Dec 2022
Revenue (EUR million)	183.5	193.7	203.7	785.8	835.3	771.4
Gross profit/loss (EUR million)	25.9	34.9	41.8	153.6	203.8	113.5
EBITDA¹ (EUR million)	25.7	36.8	50.4	175.2	214.5	135.8
EBIT¹ (EUR million)	1.3	11.4	23.5	77.4	113.3	37.7
Net profit/loss for the period (EUR million)	-5.2	2.2	16.7	40.3	78.9	13.9
Depreciation and amortisation (EUR million)	24.4	25.5	27.0	97.8	101.2	98.1
Capital expenditures¹ ²(EUR million)	5.9	5.9	179.7	22.4	28.2	203.3
Weighted average number of ordinary shares outstanding	743 569 064	743 569 064	743 569 064	743 569 064	743 569 064	743 569 064
Earnings/loss per share¹ (EUR)	-0.007	0.003	0.022	0.054	0.106	0.019
Number of passengers	1 310 014	1 338 921	1 296 047	5 580 016	5 705 600	5 462 085
Number of cargo units	64 606	76 198	96 052	303 234	323 990	409 769
Average number of employees	4 844	4 879	4 948	4 964	4 879	5 023
As at	31.12.2024	30.09.2024	30.09.2023	31.12.2024	31.12.2023	31.12.2022
Total assets (EUR million)	1 463.9	1 498.9	1 597.4	1 463.9	1 555.2	1 691.6
Total liabilities (EUR million)	681.6	711.5	813.7	681.6	769.5	984.7
Interest-bearing liabilities (EUR million)	556.4	588.3	684.8	556.4	649.3	853.5
Net debt¹ (EUR million)	537.7	555.7	620.4	537.7	607.3	738.6
Net debt to EBITDA¹	3.1	3.0	2.7	3.1	2.8	5.4
Total equity (EUR million)	782.3	787.4	783.7	782.3	785.8	706.9
Equity ratio¹ (%)	53%	53%	49%	53%	51%	42%
Number of ordinary shares outstanding	743 569 064	743 569 064	743 569 064	743 569 064	743 569 064	743 569 064
Shareholders’ equity per share (EUR)	1.05	1.06	1.05	1.05	1.06	0.95
Ratios¹	Q4 2024	Q4 2023	Q4 2022	Jan-Dec 2024	Jan-Dec 2023	Jan-Dec 2022
Gross margin (%)	14.1%	18.0%	20.5%	19.5%	24.4%	14.7%
EBITDA margin (%)	14.0%	19.0%	24.8%	22.3%	25.7%	17.6%
EBIT margin (%)	0.7%	5.9%	11.5%	9.9%	13.6%	4.9%
Net profit/loss margin (%)	-2.8%	1.1%	8.2%	5.1%	9.4%	1.8%
ROA (%)	5.1%	7.0%	2.4%	5.1%	7.0%	2.4%
ROE (%)	5.2%	10.6%	2.1%	5.2%	10.6%	2.1%
ROCE (%)	6.0%	8.4%	3.1%	6.0%	8.4%	3.1%

1 Alternative performance measures based on ESMA guidelines are disclosed in the Alternative Performance Measures section of Interim Report.
2 Does not include additions to right-of-use assets.

EBITDA: result from operating activities before net financial items, share of profit of equity-accounted investees, taxes, depreciation and amortization
EBIT: result from operating activities
Earnings/loss per share: net profit or loss/ 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 profit/loss margin: gross profit / net sales
EBITDA margin: EBITDA / net sales
EBIT margin: EBIT / net sales
Net profit/loss margin: net profit or loss / net sales
Capital expenditure: additions to property, plant and equipment – additions to right-of-use assets + additions to intangible assets
ROA: earnings before net financial items, taxes 12-months trailing / average total assets
ROE: net profit 12-months trailing / average shareholders’ equity
ROCE: earnings before net financial items, taxes 12-months trailing / (total assets – current liabilities (average for the period))
Net debt: interest-bearing liabilities less cash and cash equivalents
Net debt to EBITDA: net debt / EBITDA 12-months trailing

Consolidated statement of profit or loss and other comprehensive income

Unaudited, in thousands of EUR	Q4 2024	Q4 2023	Jan-Dec 2024	Jan-Dec 2023
Revenue	183 505	193 737	785 822	835 325
Cost of sales	-157 571	-158 809	-632 266	-631 491
Gross profit/loss	25 934	34 928	153 556	203 834
Sales and marketing expenses	-11 502	-11 381	-43 849	-42 162
Administrative expenses	-13 837	-14 978	-52 846	-52 472
Impairment loss on receivables
Other operating income	816	2 893	21 684	4 275
Other operating expenses	-114	-103	-1 115	-171
Result from operating activities	1 297	11 359	77 430	113 304
Finance income	305	528	938	1 332
Finance costs	-6 822	-10 061	-29 198	-36 864
Share of profit/loss of equity-accounted investees	0	-75	0	-75
Profit/loss before income tax	-5 220	1 751	49 170	77 697
Income tax	0	413	-8 896	1 175
Net profit/loss for the period	-5 220	2 164	40 274	78 872
Net profit/loss for the period attributable to equity holders of the Parent	-5 220	2 164	40 274	78 872
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translating foreign operations	-26	-201	332	-172
Other comprehensive income for the period	-26	-201	332	-172
Total comprehensive profit/loss for the period	-5 246	1 963	40 606	78 700
Total comprehensive profit/loss for the period attributable to equity holders of the Parent	-5 246	1 963	40 606	78 700
EPS (in EUR)	-0.007	0.003	0.054	0.106
Diluted EPS (in EUR)	-0.007	0.003	0.054	0.106

Consolidated statement of financial position

Unaudited, in thousands of EUR	31.12.2024	31.12.2023
ASSETS
Cash and cash equivalents	18 705	41 921
Trade and other receivables	25 268	31 766
Prepayments	8 764	7 661
Prepaid income tax	0	193
Inventories	48 083	41 411
Short-term intangible assets	6 901	0
Current assets	107 721	122 952
Investments in equity-accounted investees	0	0
Other financial assets and prepayments	518	4 794
Deferred income tax assets	21 840	21 840
Investment property	300	300
Property, plant and equipment	1 310 000	1 377 664
Intangible assets	23 562	27 671
Non-current assets	1 356 220	1 432 269
TOTAL ASSETS	1 463 941	1 555 221
LIABILITIES AND EQUITY
Interest-bearing loans and borrowings	104 549	104 097
Trade and other payables	95 146	85 406
Payables to owners	6	6
Income tax liability	7	10
Deferred income	30 102	34 788
Current liabilities	229 810	224 307
Interest-bearing loans and borrowings	451 825	545 160
Non-current liabilities	451 825	545 160
Total liabilities	681 635	769 467
Share capital	349 477	349 477
Share premium	663	663
Reserves	65 901	67 056
Retained earnings	366 265	368 558
Equity attributable to equity holders of the Parent	782 306	785 754
Total equity	782 306	785 754
TOTAL LIABILITIES AND EQUITY	1 463 941	1 555 221

Consolidated statement of cash flows

Unaudited, in thousands of EUR	Q4 2024	Q4 2023	Jan-Dec 2024	Jan-Dec 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit/loss for the period	-5 220	2 164	40 274	78 872
Adjustments	30 975	34 603	117 243	135 324
Changes in:
Receivables and prepayments related to operating activities	7 273	6 622	5 705	1 340
Inventories	-4 638	-1 653	-13 573	-1 446
Liabilities related to operating activities	2 535	-7 754	8 505	-10 457
Changes in assets and liabilities	5 170	-2 785	637	-10 563
Cash generated from operating activities	30 925	33 982	158 154	203 633
Income tax repaid/paid	11	-75	164	-186
NET CASH FROM/USED OPERATING ACTIVITIES	30 936	33 907	158 318	203 447
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, equipment and intangible assets	-5 923	-5 882	-22 260	-28 131
Proceeds from disposals of property, plant, equipment	39	369	24 555	613
Interest received	305	528	938	1 332
NET CASH USED IN INVESTING ACTIVITIES	-5 579	-4 985	3 233	-26 186
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans received	0	59 972	0	59 972
Repayment of loans received	-27 553	-95 954	-87 045	-251 431
Change in overdraft	0	0	0	-15
Payment of lease liabilities	-4 772	-4 494	-18 659	-21 519
Interest paid	-6 936	-7 615	-29 095	-32 827
Payment of transaction costs related to loans	0	-3 343	-450	-4 455
Dividends paid	0	0	-44 614	0
Income tax on dividends paid	0	0	-4 904	0
NET CASH FROM/USED IN FINANCING ACTIVITIES	-39 261	-51 434	-184 767	-250 275
TOTAL NET CASH FLOW	-13 904	-22 512	-23 216	-73 014
Cash and cash equivalents at the beginning of period	32 609	64 433	41 921	114 935
Change in cash and cash equivalents	-13 904	-22 512	-23 216	-73 014
Cash and cash equivalents at the end of period	18 705	41 921	18 705	41 921

Anneli Simm
Investor Relations Manager

AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail anneli.simm@tallink.ee
Phone: +372 56157170

Attachments

• Tallink Grupp 2024 Q4 ENG
• Tallink Grupp 2024 Q4 Financial Data
• AS Tallink Grupp Q4 2024 Corporate Presentation