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, Financial) 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
Q: What is the outlook for the current quarter and upcoming winter? What are the main opportunities, risks, and bottlenecks?
A: We do not provide specific outlooks, but October has been strong due to school holidays. Risks include economic conditions and competition in the cargo sector. However, we have managed to maintain cargo revenue levels despite lower volumes. - Paavo Nogene, Chairman of the Management Board
Q: How is consumer sentiment in Finland?
A: Consumer sentiment is quite low across all countries. People are more cautious with spending, but there are signs of improvement as costs decrease. - Paavo Nogene, Chairman of the Management Board
Q: What will be the main parameters you look at when deciding if it's appropriate to pay out dividends according to dividend policy?
A: We consider our plans for the next three to five years, including potential investments. Currently, we aim to pay dividends next year, as we do not have significant investment plans due to uncertainties in technology and regulations. - Paavo Nogene, Chairman of the Management Board
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
