Q1 results of the 2013 financial year 

In the first quarter (1 January- 31 March) of the 2013 financial year AS Tallink Grupp and its subsidiaries’ (the Group) results were impacted by operational events. In the first quarter, which is low season, several of the Group’s vessels went through scheduled maintenance works resulting in fewer voyages and hence lower passenger and cargo volumes compared to the previous years when there have been typically less vessels out of service. In addition, the cruise ferries Silja Europa and Baltic Princess changed their operating routes resulting temporarily in fewer sailings due to the change. Accordingly, based on earlier decision the cruise ferry Baltic Princess was rerouted to Turku-Stockholm route in the beginning of February 2013 and the larger cruise ferry Silja Europa to Tallinn-Helsinki route from the end of January 2013. The change of vessels will improve cost efficiency which will have positive effect to the Group’s result.

The Group carried 1.9 million passengers in the first quarter which is 4.5% less compared to the same period last year. The Group’s consolidated revenue in the first quarter was EUR 190.6 million, being 1.7% or EUR 3.2 million less than a year ago. Through more effective dynamic pricing the average ticket revenue per passenger increased 11% in same period resulting in a 6% increase in total ticket revenue, despite the lower passenger volumes.

In the first quarter of 2013 financial year the Group’s gross profit amounted to EUR 16.2 million and EBITDA to EUR 7.0 million being respectively EUR 2.6 million and EUR 3.2 million less compared to the same period last year. The decline in the Group’s results is mainly related to scheduled maintenance works and vessels’ route changes which in addition to fewer sailings and decreased traffic volume brought higher maintenance costs. The Group’s vessels sailed 3.5% trips less compared to the first quarter of 2012. Switching the cruise ferries Silja Europa and Baltic Princess on their routes required nearly EUR 1 million in one off costs.

The unaudited net loss for the first quarter was EUR 17.7 million or EUR 0.03 per share compared to the net loss of EUR 19.0 million or EUR 0.03 per share in the same period last year.

In the first quarter positive development continued on the Latvia-Sweden route where revenue increased nearly 18% driven by 8% growth in passenger volume and increase in revenue per passenger.

In the first quarter the Group started to phase in the new version of internet booking system. Currently live on the Group’s Finnish and Estonian websites the new online booking offers easier, faster and more convenient booking process.

At the end of the first quarter 2013 the Group had EUR 83.4 million in cash and equivalents and the total of unused credit lines were at EUR 7.3 million. The total liquidity, cash and unused credit facilities at the end of the fourth quarter were EUR 90.7 million providing a strong position for sustainable operations.

EBITDA:  Earnings before net financial items, taxes, depreciation and amortization;
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;
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.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(unaudited, in thousands of EUR)

CONSOLIDATED CASH FLOW STATEMENT