During the quarter, Gotlandsbolaget submitted their tender to the Swedish Transport Administration for Gotland traffic 2027-2035. At the time of the report's publication, there is no information on when a decision will be announced by the Swedish Transport Administration. As previously communicated, Gotlandsbolaget see great opportunities to continue operating traffic even if they were not to win the contract.

Quarter January-March 2024

Revenues amounted to SEK 384.9 million (362.9). The costs amounted to -419.6 MSEK (-425.8). The changes compared to the previous year are primarily a consequence of services performed for Gotland Alandia Cruises, which affect both revenue and costs, lower fuel costs and the fact that Easter this year fell in March.

Adjusted operating profit amounted to SEK -66.7 million (-62.9) corresponding to SEK -26.7 (-25.2) per share. The deterioration is due to the result being negatively affected by establishment costs from the stake in Gotland Alandia Cruises, which is at the same time offset by lower fuel costs and the fact that Easter fell in March.

The net profit from the sale of ships amounted to SEK 0.0 million (-30.5).

The financial net amounted to SEK 122.7 million (21.8), affected by higher interest income and positive exchange rate changes.

The profit after tax, including sales profit on sales, amounted to SEK 37.2 million (-70.0), corresponding to SEK 14.9 (-28.0) per share.

Significant events during the quarter

Gotlandsbolaget and the Australian shipyard Austal took the next step in February 2024 in the work to develop a high-speed catamaran for the Gotland traffic by signing a letter of intent with the goal of being able to sign a construction agreement.

At the beginning of March, tenders were submitted to the Swedish Transport Administration for the procurement of Gotlandstrafiken 2027-2035. The current agreement is valid until the end of January 2027.

On 20 March, the premiere cruise took place with BIRKA GOTLAND, almost exactly one year after the acquisition of the vessel.

Comments from the CEO Håkan Johansson:

“Establishment of BIRKA GOTLAND affects the result

On 20 March 20, our and Viking Line's joint cruise venture premiered, about a year after we acquired the ship. BIRKA GOTLAND makes daily cruises between Stockholm and Mariehamn, to supplement these with a larger number of cruises to Visby during spring, summer and autumn.

Gotlandsbolaget's operations are largely seasonal, and a negative adjusted operating result is to be expected for the first quarter. The result this year is positively affected by lower bunker prices and increased travel with Destination Gotland but burdened by establishment costs of the new cruise line. We therefore see a lower adjusted operating profit than the previous year, SEK -66.7 million (-62.9).

The increased travel with Destination Gotland compared to the same period last year is due to Easter being early this year, and the first major travel weekend of the year therefore falling in the first quarter. The number of travelers during the quarter amounted to 188,200, which is an increase of 12% compared to 2023. If we look at the quarter without this Easter effect, we note that travel is still negatively affected by the economy and household finances.

Tender submitted to the Swedish Transport Administration

On March 13, we submitted a tender to the Swedish Transport Administration for the upcoming concession period in Gotlandstrafiken, 2027-2035. A procurement that is open to all European shipping companies. When the quarterly report is published, we have no information or indications of how many shipping companies are participating or when information will be given. As we previously communicated, we see great opportunities to continue operating traffic even if we were not to win the contract.

When we look ahead

We continue to evaluate new opportunities and business, above all with a focus on passenger shipping and real estate, but also new activities within, for example, energy and fuel development.

Gotland traffic and our accommodation facilities on Gotland are now preparing for the high season, and so is BIRKA GOTLAND. During the summer, the range of cruises is broadened with a number of longer so-called destination cruises to the High Coast, Riga, Bornholm and Ystad. Extra gratifying for Gotland are the 30 or so cruises that will call at Visby in the coming months. This means another travel route to and from Gotland, and also that more visitors get the chance to experience what Visby and Gotland have to offer.”

Full report in Swedish https://corporate.gotlandsbolaget.se/sv/wp-content/uploads/sites/4/2021/10/Kvartalsrapport-januari-mars-2024-240522.pdf

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