|
During the first half of the 2006/2007 financial year the revenues of AS Tallink Grupp increased by 205% compared to the same period of previous financial year. The Group’s EBITDA increased nearly 209% and reached 789 million EEK (50 million EUR).
Mr. Enn Pant, CEO of AS Tallink Grupp said: “We are pleased that the weakest season which is typical to our business is over and that the company has retained the profitability in the first half of the financial year. The Silja integration has been sucessful giving us confidence in meeting our targets on the coming high season.”
Despite the additional restructuring costs and the fact that many of the operational changes and vessels’ dockings were done during the second quarter we have maintained the operational profitability for the first half-year. The EBITDA margin for the first half-year period is holding at 14.5%, a percentage point higher than last year. Excluding the integration related 77 millon EEK (5 million EUR) non recurring costs the EBITDA margin would be 15.9% indicating that the performance of the Group during the first half-year has improved.
Similarly to the first quarter the primary focus has also in second quarter been on the integration of Silja and Tallink, on the related changes in the organisation and launching of actions generating positive synergies. The improvements of the acquired Silja operations have been noticeable and the integration process has been successful. The Silja EBITDA has improved approximately by 140 million EEK (9 million EUR) during the first half-year of 2006/2007 financial year compared to the 2005/2006 pro-forma results.
1st HALF-YEAR KEY FIGURES
| |
01.09.2006-28.02.2007 |
01.09.2005-28.02.2006 |
change |
| |
EEK |
EUR |
EEK |
EUR |
% |
| Net sales (million) |
5,448.8 |
348.2 |
1,786.0 |
114.1 |
205.1 |
| EBITDA (million) |
789.1 |
50.4 |
255.7 |
16.3 |
208.6 |
| EBITDA margin (%) |
14.5 |
|
14.3 |
14.3 |
|
| Net profit for the period (million) |
2.6 |
0.2 |
55.2 |
3.5 |
-95.3 |
| Net profit margin (%) |
0.0 |
0.0 |
3.1 |
3.1 |
|
| |
|
|
|
|
|
| Depreciation (million) |
509.1 |
32.5 |
138.5 |
8.9 |
267.6 |
| Investments (million) |
413.6 |
26.4 |
237.8 |
15.2 |
74.0 |
| |
|
|
|
|
|
| Weighted average number of ordinary shares outstanding during 1st half-year* |
673,817,040 |
488,607,736 |
37.9 |
| Earnings per share |
0.00 |
0.00 |
0.11 |
0.01 |
-96.5 |
| |
|
|
|
|
|
| Number of passengers |
2,978,815 |
|
1,336,872 |
|
122.8 |
| Cargo units |
175,935 |
|
70,044 |
|
151.2 |
| Average number of employees |
5,970 |
|
2,632 |
|
126.8 |
| |
|
|
|
|
|
| |
28.02.2007 |
31.08.2006 |
change |
| |
EEK |
EUR |
EEK |
EUR |
% |
| Total assets (million) |
25,230.0 |
1,612.5 |
25,931.6 |
1,657.3 |
-2.7 |
| Total liabilities (million) |
15,808.0 |
1,010.3 |
16,856.3 |
1,077.3 |
-6.2 |
| Interest-bearing liabilities (million) |
14,366.9 |
918.2 |
14,955.6 |
955.8 |
-3.9 |
| Total equity (million) |
9,082.9 |
580.5 |
9,075.3 |
580.0 |
0.1 |
| Equity ratio (%) |
36.0 |
|
35.0 |
|
|
| |
|
|
|
|
|
| Number of ordinary shares outstanding* |
673,817,040 |
|
546,000,000 |
|
23.4 |
| Shareholders equity per share |
13.48 |
0.86 |
16.62 |
1.06 |
-18.9 |
Net profit margin – Net profit / Net sales;
EBITDA – Earnings before net financial items, share of profit of associates, taxes, depreciation and amortization, income from negative goodwill;
EBITDA margin – EBITDA / Net sales;
Equity ratio – Total Equity / Total Assets;
Earnings per share – Net Profit / Weighted average number of shares outstanding;
Shareholder’s equity per share – Shareholder’s equity / Number of shares outstanding.
* share numbers adjusted in connection with the bonus issue in January 2007.
SALES AND EARNINGS
Net sales of AS Tallink Grupp and its subsidiaries amounted to 5,448.8 million EEK (348.2 million EUR) in the first half of 2006/2007 financial year (September 01, 2006 – February 28, 2007) compared to 1,786.0 million EEK (114.1 million EUR) with the first half of 2005/2006 financial year (September 01, 2005 – February 28, 2006). The 3,662.8 million EEK (234.1 million EUR) or 205.1% increase in sales in the first half resulted largely from the investments made during the previous financial year, but also from the increased number of passengers on Estonia-Finland and Estonia-Sweden routes and increased revenues per passenger.
During the first half of 2006/2007 financial year the Group’s EBITDA increased by 208.6% to 789.1 million EEK (50.4 million EUR). The net profit decreased by 95.3% from 55.2 million EEK (3.5 million EUR) to 2.6 million EEK (0.2 million EUR). The second quarter performance was largely influenced from many of the operational factors such as vessels’ dry-dockings and fleet changes on the routes.
During the first half the Group’s earnings were negatively affected by several non-recurring integration costs in the total amount of 78 million EEK (5 million EUR) which are mainly related to the redundancies at our Finnish and Swedish shore organisation. It is estimated that these non-recurring redundancy costs will lead to approximately 147 million EEK (9.4 million EUR) yearly savings on overhead costs. In addition to the identified integration costs approximately 15.6 million EEK (1 million EUR) of indirect non-recurring costs are related to the restructuring and integration of our Finnish and Swedish shore operations.
The outlook for Q3 and Q4 is positive. The fleet changes that were made during the Q2 and the delivery of new vessel Star are showing positive operational performance.
CONSOLIDATED CONDENSED INCOME STATEMENT
| |
|
|
|
|
| (unaudited, in thousands of EEK) |
01.12.2006-28.02.2007 |
01.12.2005-28.02.2006 |
01.09.2006-28.02.2007 |
01.09.2005-28.02.2006 |
| Net sales |
2,471,915 |
793,969 |
5,448,778 |
1,786,023 |
| Cost of sales |
-2,041,164 |
-690,905 |
-4,294,028 |
-1,440,492 |
| Gross profit |
430,751 |
103,064 |
1,154,750 |
345,531 |
| |
|
|
|
|
| Marketing expenses |
-167,747 |
-56,940 |
-403,688 |
-160,433 |
| Administrative and general expenses |
-249,683 |
-30,123 |
-479,239 |
-68,336 |
| Other operating items |
823 |
555 |
8,250 |
441 |
| Income from negative goodwill |
0 |
0 |
689 |
0 |
| Financial income |
66,409 |
9,878 |
91,045 |
10,747 |
| Financial expenses |
-190,841 |
-34,136 |
-367,549 |
-72,145 |
| |
|
|
|
|
| Profit from normal operation before income tax |
-110,288 |
-7,702 |
4,258 |
55,805 |
| |
|
|
|
|
| Income tax |
-1,708 |
299 |
-1,653 |
-588 |
| |
|
|
|
|
| Net profit for the period |
-111,996 |
-7,403 |
2,605 |
55,217 |
| Attributable to: |
|
|
|
|
| Equity holders of the parent |
-111,996 |
-7,601 |
2,605 |
54,598 |
| Minority interests |
0 |
198 |
0 |
619 |
| Earnings per share (in EEK per share) |
|
|
|
|
| - basic |
|
|
0.00 |
0.11 |
| - diluted |
|
|
0.00 |
0.11 |
| |
|
|
|
|
| (unaudited, in thousands of EUR) |
01.12.2006-28.02.2007 |
01.12.2005-28.02.2006 |
01.09.2006-28.02.2007 |
01.09.2005-28.02.2006 |
| Net sales |
157,984 |
50,744 |
348,240 |
114,148 |
| Cost of sales |
-130,454 |
-44,157 |
-274,438 |
-92,064 |
| Gross profit |
27,530 |
6,587 |
73,802 |
22,084 |
| |
|
|
|
|
| Marketing expenses |
-10,721 |
-3,640 |
-25,800 |
-10,254 |
| Administrative and general expenses |
-15,958 |
-1,925 |
-30,629 |
-4,367 |
| Other operating items |
53 |
36 |
527 |
28 |
| Income from negative goodwill |
0 |
0 |
44 |
0 |
| Financial income |
4,244 |
632 |
5,819 |
687 |
| Financial expenses |
-12,197 |
-2,182 |
-23,491 |
-4,611 |
| |
|
|
|
|
| Profit from normal operation before income tax |
-7,049 |
-492 |
272 |
3,567 |
| |
|
|
|
|
| Income tax |
-109 |
19 |
-106 |
-38 |
| |
|
|
|
|
| Net profit for the period |
-7,158 |
-473 |
166 |
3,529 |
| Attributable to: |
|
|
|
|
| Equity holders of the parent |
-7,158 |
-485 |
166 |
3,490 |
| Minority interests |
0 |
12 |
0 |
39 |
| Earnings per share (in EEK per share) |
|
|
|
|
| - basic |
|
|
0.00 |
0.01 |
| - diluted |
|
|
0.00 |
0.01 |
CONSOLIDATED CONDENSED BALANCE SHEET
| (unaudited, in thousands of EEK) |
|
|
| ASSETS |
28.02.2007 |
31.08.2006 |
| Current assets |
|
|
| Cash and cash equivalents |
579,919 |
1,407,608 |
| Receivables |
732,867 |
843,456 |
| Prepayments |
210,134 |
235,890 |
| Derivatives |
51,468 |
11,633 |
| Tax assets |
11,138 |
17,644 |
| Inventories |
226,198 |
237,228 |
| Total current assets |
1,811,724 |
2,753,459 |
| |
|
|
| Non-current assets |
|
|
| Investments in associates |
9,044 |
9,044 |
| Other financial assets and prepayments |
8,313 |
8,240 |
| Pension assets |
45,234 |
45,234 |
| Property, plant and equipment |
21,746,360 |
21,857,153 |
| Intangible assets |
1,270,261 |
1,258,432 |
| Total non-current assets |
23,079,212 |
23,178,103 |
| |
|
|
| TOTAL ASSETS |
24,890,936 |
25,931,562 |
| |
|
|
| LIABILITIES AND EQUITY |
|
|
| Current liabilities |
|
|
| Current portion of interest-bearing liabilities |
1,865,026 |
1,228,098 |
| Payables |
1,183,921 |
1,593,026 |
| Deferred income |
110,672 |
146,042 |
| Derivatives |
12,954 |
24,159 |
| Tax liabilities |
104,209 |
112,061 |
| Total current liabilities |
3,276,782 |
3,103,386 |
| |
|
|
| Non-current liabilities |
|
|
| Interest bearing loans and borrowings |
12,501,878 |
13,727,497 |
| Deferred income tax liability |
1,595 |
69 |
| Pension liability |
27,773 |
25,332 |
| Total non-current liabilities |
12,531,246 |
13,752,898 |
| TOTAL LIABILITIES |
15,808,028 |
16,856,284 |
| |
|
|
| EQUITY |
|
|
| Minority interests |
0 |
1,189 |
| Equity attributable to equity holders of the parent |
|
|
| Share capital |
6,738,170 |
1,415,000 |
| Share premium |
9,999 |
2,012,394 |
| Unregistered share capital with share premium |
0 |
1,475,727 |
| Reserves |
1,239,139 |
1,158,714 |
| Retained earnings |
1,095,600 |
3,012,254 |
| Total equity attributable to equity holders of the parent |
9,082,908 |
9,074,089 |
| TOTAL EQUITY |
9,082,908 |
9,075,278 |
| |
|
|
| TOTAL LIABILITIES AND EQUITY |
24,890,936 |
25,931,562 |
CONSOLIDATED CONDENSED BALANCE SHEET
| (unaudited, in thousands of EUR) |
|
|
| ASSETS |
28.02.2007 |
31.08.2006 |
| Current assets |
|
|
| Cash and cash equivalents |
37,064 |
89,963 |
| Receivables |
46,839 |
53,906 |
| Prepayments |
13,430 |
15,076 |
| Derivatives |
3,289 |
743 |
| Tax assets |
712 |
1,128 |
| Inventories |
14,457 |
15,162 |
| Total current assets |
115,791 |
175,978 |
| |
|
|
| Non-current assets |
|
|
| Investments in associates |
578 |
578 |
| Other financial assets and prepayments |
531 |
527 |
| Pension assets |
2,891 |
2,891 |
| Property, plant and equipment |
1,389,846 |
1,396,927 |
| Intangible assets |
81,184 |
80,428 |
| Total non-current assets |
1,475,030 |
1,481,351 |
| |
|
|
| TOTAL ASSETS |
1,590,821 |
1,657,329 |
| |
|
|
| LIABILITIES AND EQUITY |
|
|
| Current liabilities |
|
|
| Current portion of interest-bearing liabilities |
119,197 |
78,490 |
| Payables |
75,666 |
101,813 |
| Deferred income |
7,073 |
9,334 |
| Derivatives |
828 |
1,544 |
| Tax liabilities |
6,660 |
7,162 |
| Total current liabilities |
209,424 |
198,343 |
| |
|
|
| Non-current liabilities |
|
|
| Interest bearing loans and borrowings |
799,016 |
877,347 |
| Deferred income tax liability |
102 |
4 |
| Pension liability |
1,775 |
1,619 |
| Total non-current liabilities |
800,893 |
878,970 |
| TOTAL LIABILITIES |
1,010,317 |
1,077,313 |
| |
|
|
| EQUITY |
|
|
| Minority interests |
0 |
76 |
| Equity attributable to equity holders of the parent |
|
|
| Share capital |
430,648 |
90,435 |
| Share premium |
639 |
128,615 |
| Unregistered share capital with share premium |
0 |
94,316 |
| Reserves |
79,195 |
74,056 |
| Retained earnings |
70,022 |
192,518 |
| Total equity attributable to equity holders of the parent |
580,504 |
579,940 |
| TOTAL EQUITY |
580,504 |
580,016 |
| |
|
|
| TOTAL LIABILITIES AND EQUITY |
1,590,821 |
1,657,329 |
Janek Stalmeister
Financial Director
AS Tallink Grupp
Tel. +372 6409 800
Email: janek.stalmeister@tallink.ee |