Tallinn, 2016-04-27 08:50 CEST (GLOBE NEWSWIRE) --
In the 2015 financial year the Group carried a total of 9.0 million passengers
which is 1.1% more compared to the year before. The Group’s revenue increased
by 2.6% to all-time high of EUR 945.2 million (EUR 921.5 million in 2014) and
EBITDA increased by 20.5% to a record EUR 181.4 million (EUR 150.6 million in
2014). Net profit more than doubled compared to last year and amounted to EUR
59.1 million (EUR 27.3 million in 2014) or EUR 0.09 per share (EUR 0.04 in
2014). The cash flow from operating activities increased by EUR 41.2 million
and totalled to EUR 191.9 million. The increase in the Group’s results is
mainly attributed to the growth in passenger number, higher on-board revenue
per passenger, higher charter revenue and lower operating costs. The results
improved in all geographical segments compared to the previous financial year.
In 2015 financial year the proactive marketing and sales activities led to an
increase of the passenger number. The number of passengers traveling with the
Tallink and Silja Line branded ships grew steadily in most of the operated
routes and the Group regained market share from the direct competition. On
Tallinn-Helsinki route all time high number of 4.7 million passengers travelled
with the Group’s vessels during the year. Tallink and Enterprise Estonia joint
campaign “Epic Estonia” targeting Swedish market was recognised as the „Best
marketing campaign of the year“ in Estonia, it is biggest ever Estonian
campaign made in collaboration of public and private sector organizations.
More passengers with higher average on-board sales per passenger resulted in
increase of shop and restaurant sales. The on-board sales growth was achieved
thanks to the Group’s continuous focus on development of the product offering
and expansion of the shops and restaurants in the vessels. The large scale
investments to the vessels Silja Symphony and Silja Serenade shops, restaurants
and cabins in the previous financial year showed positive impact on the
earnings in 2015 by attracting more passengers and increasing on-board sales
per passenger. In 2015 the Group continued with the updates of the public areas
and introduced new concepts in number of vessels, also the existing successful
shop and restaurant concepts are expanded to more vessels. The modernisation
program is extended over several years and the Group will continue to update
the shops, restaurants and cabins in selected vessels to develop and improve
the product offering. In 2015 the Group took the next step and entered into
partnership with world known fast food brand BURGER KING®. The world’s first
floating BURGER KING® restaurant on Tallink Shuttle ferry Star opened in
January 2016.
The charter revenue increased compared to the previous period as more vessels
were chartered out in 2015. Two of the chartered out vessels Silja Festival and
Regina Baltica were sold in the first half of financial year 2015. Three
Superfast ferries remain chartered out. Cruise ferry Silja Europa returned from
charter to Tallinn-Helsinki route on March 2016.
The Group signed a contract with Meyer Turku Oy in February 2015 for the
construction of its new EUR 230 million LNG powered fast ferry. The production
of the new LNG fast ferry started on the 4th of August 2015 at Meyer Turku
shipyard and the delivery of the vessel is planned in the beginning of 2017.
In order to be ready for the delivery of the new generation LNG fast ferry to
the Tallinn-Helsinki route Shuttle service early 2017, the Group decided to
sell and charter back the fast ferry Superstar. The ownership of the vessel was
transferred to the buyer in December 2015. The Group continues to operate the
vessel under the charter agreement until the beginning of 2017, when the new
LNG fast ferry will start to operate on Tallinn-Helsinki route Shuttle service.
In 2015 financial year the lower energy prices globally enabled smooth adoption
to the more environmental friendly low sulphur fuel and the previously
highlighted risk of increasing fuel cost did not materialise. Following the
market prices the Group’s average fuel price in 2015 was 5% lower compared to
2014. The total annual fuel consumption reduced by 13%, the saving is
attributed to optimisations in vessel operations and changes in the fleet.
Lower total fuel consumption and price resulted in EUR 20 million less fuel
cost compared to previous year.
Following the Group’s strategy to ensure cost efficient operations, the Tallink
Logistics Center project was started and one of the most modern logistics
centres in the region was launched in January 2016. The Group operated
logistics centre will consolidate the logistics of the goods and will be the
single hub for distribution of majority of the goods for the fleet, hotels and
offices. In addition, the Group is in final phase with the implementation of
its new enterprise resource planning system. The system improves the Groups
resource management capacity and enables further efficiencies in operations and
support functions.
The key highlights of the 2015 financial year were the following:
-- Record revenue and EBITDA result, net profit more than doubled
-- All time high passenger number on Tallinn-Helsinki route
-- Positive effect from charters and re-routings
-- Positive feedback from upgraded vessels
-- Adoption to the new EU Sulphur Directive
-- Lower fuel price and lower total fuel consumption
-- Sale of vessels Silja Festival and Regina Baltica
-- Start of production of the new generation LNG powered fast ferry
-- Sale and charter-back of fast ferry Superstar
KEY FIGURES OF THE FINANCIAL YEAR 2015
2015 2014 Change
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EUR EUR %
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Revenue (million) 945.2 921.5 2.6%
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Gross profit (million) 223.4 181.7 23.0%
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Net profit for the period (million) 59.1 27.3 116.7%
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EBITDA (million) 181.4 150.6 20.5%
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Depreciation and amortisation (million) 78.1 79.9 -2.3%
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Investments (million) 43.6 49.1 -11.2%
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Weighted average number of ordinary shares 669,882,040 669,882,040 0%
outstanding1
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Earnings per share 0.088 0.041 116.7%
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Number of passengers 8,976,226 8,881,732 1.1%
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Number of cargo units 308,029 310,492 -0.8%
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Average number of employees 6,835 6,952 -1.7%
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31.12.2015 31.12.2014
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Total assets (million) 1,538.8 1,685.6 -8.8%
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Total liabilities (million) 714.3 907.3 -21.3%
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Interest-bearing liabilities (million) 549.3 743.4 -26.1%
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Net debt (million) 467.3 678.1 -31.1%
--------------------------------------------------------------------------------
Total equity (million) 824.4 778.3 5.9%
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Equity ratio (%) 53.6% 46.2%
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Number of ordinary shares outstanding1 669,882,040 669,882,040 0%
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Shareholders’ equity per share 1.23 1.16 6.0%
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Ratios
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Gross margin (%) 23.6% 19.7%
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EBITDA margin (%) 19.2% 16.3%
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Net profit margin (%) 6.3% 3.0%
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Return on assets (ROA) 6.3% 4.1%
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Return on equity (ROE) 7.4% 3.6%
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Return on capital employed (ROCE) 7.7% 5.0%
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Net debt to EBITDA 2.6 4.5 -42.2%
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EBITDA: Earnings before net financial items, share of profit of equity
accounted investees, taxes, depreciation and amortisation
Earnings per share: net profit / 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 margin: gross profit / net sales
EBITDA margin: EBITDA / net sales
Net profit margin: net profit / net sales
ROA: Earnings before net financial items, taxes /Average total assets
ROE: Net profit/Average shareholders’ equity
ROCE: Earnings before net financial items, taxes / (Total assets – Current
liabilities (average for the period))
Net debt: Interest-bearing liabilities less cash and cash equivalents
Net debt to EBITDA: Net debt / 12-months trailing EBITDA
1 Share numbers exclude own shares.
SALES
The Group’s consolidated revenue amounted to EUR 945.2 million in 2015 (921.5
million in 2014). Restaurant and shop sales on-board and on mainland of EUR
500.6 million (487.6 million in 2014) contributed more than half of total
revenue. Ticket sales amounted to EUR 228.0 million (230.5 million in 2014) and
sales of cargo transport to EUR 104.4 million (103.1 million in 2014).
The revenue growth 2.6% was driven by higher restaurant and shop sales and
charter revenues. The restaurant and shop sales increase 2.7% or EUR 13.1
million was supported by higher passenger number and also higher on-board sales
per passenger. The charter revenues increased by 13.6% or EUR 6.4 million and
the cargo revenues by 1.3% compared to 2014. Marketing and sales activities led
to an increase of passenger number and resulted in lower ticket revenue per
passenger, the total ticket revenue declined by 1.1%.
Geographically, 35.8% or EUR 338.2 million of revenue came from the
Estonia-Finland route and 35.3% or EUR 333.3 million from the Finland-Sweden
route. Revenue from the Sweden-Estonia route was EUR 104.3 million or 11.0% and
from the Sweden-Latvia route EUR 42.0 million or 4.4%. The share of revenue
generated by other geographical segments increased to 13.5% (EUR 127.4
million).
EARNINGS
Gross profit was EUR 223.4 million (EUR 181.7 million in 2014), EBITDA EUR
181.4 million (EUR 150.6 million in 2014). Net profit for 2015 was EUR 59.1
million (EUR 27.3 million in 2014). Basic and diluted earnings per share were
EUR 0.088 (EUR 0.041 in 2014).
The cost of goods related to sales at shops and restaurants, which is the
largest operating cost item, amounted to EUR 215.4 million (EUR 211.2 million
in 2014).
Fuel cost for 2015 was EUR 94.2 million (EUR 114.0 million in 2014). Fuel cost
was impacted by lower fuel price levels throughout the year. Measured in euros,
in 2015 the Group’s average fuel price was approximately 5% lower than in the
2014 calendar year. Combined with one vessel less in Riga-Stockholm route and
savings from more efficient vessel operations, the total annual fuel cost
reduced by 17%.
The Group’s personnel expenses amounted to EUR 193.8 million (EUR 189.8 million
in 2014). The average number of employees in the 2015 financial year was 6,835
(6,952 in 2014).
Administrative expenses for 2015 amounted to EUR 47.3 million, and sales and
marketing expenses to EUR 63.6 million (EUR 49.2 million and 62.7 million
respectively in 2014).
Depreciation and amortisation of the Group’s assets was EUR 78.1 million (EUR
79.9 million in 2014). There were no impairment losses related to the Group’s
property, plant, equipment and intangible assets.
The Group’s net finance costs for 2015 amounted to EUR 34.2 million (EUR 40.7
million in 2014).
The Group’s exposure to credit risk, liquidity risk and market risks, and its
financial risk management activities are described in the notes to the
financial statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
--------------------
In thousands of EUR
2015 2014
--------------------
--------------------
Revenue 945,203 921,466
Cost of sales -721,780 -739,789
--------------------
Gross profit 223,423 181,677
--------------------
--------------------
Sales and marketing expenses -63,578 -62,654
Administrative expenses -47,311 -49,211
Other operating income 983 1,696
Other operating expenses -10,254 -854
--------------------
Result from operating activities 103,263 70,654
--------------------
--------------------
Finance income 12,808 11,760
Finance costs -46,964 -52,443
Share of profit of equity-accounted investees 64 24
--------------------
Profit before income tax 69,171 29,995
--------------------
--------------------
Income tax -10,101 -2,734
--------------------
--------------------
Net profit for the year 59,070 27,261
--------------------
--------------------
--------------------
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translating foreign operations 160 286
--------------------
Other comprehensive income for the year 160 286
--------------------
Total comprehensive income for the year 59,230 27,547
--------------------
Basic and diluted earnings per share 0.088 0.041
(in EUR per share)
--------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
---------------------
In thousands of EUR
As at 31 December 2015 2014
restated
---------------------
---------------------
ASSETS
Current assets
Cash and cash equivalents 81,976 65,311
Trade and other receivables 36,583 38,210
Prepayments 5,274 3,798
Income tax prepayment 1,224 1,650
---------------------
Inventories 29,197 31,315
---------------------
154,254 140,284
---------------------
---------------------
Non-current assets
Investments in equity-accounted investees 350 286
Other financial assets 308 252
Deferred income tax assets 19,410 21,338
Investment property 300 300
Property, plant and equipment 1,311,418 1,467,964
Intangible assets 52,726 55,174
---------------------
1,384,512 1,545,314
---------------------
TOTAL ASSETS 1,538,766 1,685,598
---------------------
---------------------
LIABILITIES AND EQUITY
Current liabilities
Interest-bearing loans and borrowings 81,889 149,850
Trade and other payables 88,480 91,236
Income tax liability 4,567 1,300
Deferred income 28,906 29,408
203,842 271,794
---------------------
---------------------
Non-current liabilities
Interest-bearing loans and borrowings 467,447 593,532
Derivatives 42,863 41,982
Other liabilities 192 0
---------------------
510,502 635,514
---------------------
Total liabilities 714,344 907,308
---------------------
---------------------
Equity
Equity attributable to equity holders of the Parent
Share capital 404,290 404,290
Share premium 639 639
Reserves 65,083 70,129
Retained earnings 354,410 303,232
---------------------
Total equity attributable to equity holders of the Parent 824,422 778,290
---------------------
Total equity 824,422 778,290
---------------------
TOTAL LIABILITIES AND EQUITY 1,538,766 1,685,598
---------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
-------------------
For the year ended 31 December In thousands of
EUR
2015 2014
-------------------
-------------------
Cash flows from operating activities
Net profit for the period 59,070 27,261
Adjustments for:
Depreciation and amortisation 78,102 79,908
Net gain/loss on disposals of property, plant and equipment 9,164 -76
Net interest expense 36,099 35,336
Net expense from derivatives 4,926 15,758
Gain on disposal of financial assets -186 0
Profit from equity-accounted investees -64 -24
Net unrealised foreign exchange gain -5,591 -7,783
Share option programme reserve 300 -224
Income tax 10,101 2,734
-------------------
-------------------
132,851 125,629
Changes in:
Receivables and prepayments related to operating activities 1,463 -2,291
Inventories 2,118 2,142
Liabilities related to operating activities -4,139 -2,103
-------------------
-------------------
Cash generated from operating activities 191,363 150,638
Income tax paid 553 71
191,916 150,709
-------------------
-------------------
Cash flows from/used in investing activities
Purchase of property, plant, equipment and intangible assets -43,629 -49,148
Proceeds from disposals of property, plant, equipment 115,370 215
Proceeds from other financial assets 229 0
Interest received 74 140
72,044 -48,793
-------------------
-------------------
Cash flows used in financing activities
Repayment of loans -133,263 -89,842
Change in overdraft -59,052 43,993
Payments for settlement of derivatives -4,045 -3,985
Payment of finance lease liabilities -80 -75
Interest paid -33,210 -33,270
Payment of transaction costs related to loans -1,429 0
Dividends paid -13,398 -20,096
Income tax on dividends paid -2,818 -5,342
-------------------
-247,295 -108,617
-------------------
-------------------
TOTAL NET CASH FLOW 16,665 -6,701
-------------------
-------------------
Cash and cash equivalents:
- at the beginning of period 65,311 72,012
- increase / decrease 16,665 -6,701
-------------------
- at the end of period 81,976 65,311
-------------------
Janek Stalmeister
Chairman of the Management Board
AS Tallink Grupp
Tel +372 640 9800
E-mail janek.stalmeister@tallink.ee
Veiko Haavapuu
Finance Director
AS Tallink Grupp
Sadama 5/7, 10111 Tallinn
Tel. +372 640 9914
E-mail veiko.haavapuu@tallink.ee
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