“Tourism is a seasonal sector. The growth in passenger numbers during the second quarter reflects renewed trust and the recovery of people's ability to travel. However, freight transportation remains more challenging,” said Paavo Nõgene, CEO of Tallink Grupp.

While the transportation of passenger vehicles increased by 1.4% to 212,782 units, freight units declined by 22.8% to 67,038 units. Consolidated unaudited revenue for the quarter reached EUR 207 million, with EBITDA (earnings before interest, taxes, depreciation and amortization) amounting to EUR 37.4 million. The quarter ended with a net loss of EUR 2.5 million.

“Nevertheless, June's result was somewhat better than last year's. One reason for the losses has been idle vessels, although their number has decreased from four to two. The sale of STAR I and the chartering of ROMANTIKA help optimize asset utilization, reduce running costs, and generate additional revenue. This is a positive development. The second-quarter result also includes a dividend income tax expense of EUR 11 million,” confirmed Nõgene

In the first half of the year, the group carried 2.5 million passengers, down 3.8% from the same period last year. Unaudited half-year revenue amounted to EUR 344.2 million, a 7.1% decline year-on-year. EBITDA fell to EUR 33.6 million, compared to EUR 81.1 million during the same period last year. The company posted a net loss of EUR 35.7 million for the first half, contrasting with a net profit of EUR 8.7 million a year earlier.    

“The first half of the year has been challenging in many respects. Both passenger and freight volumes have declined due to clearly weakened demand,” Nõgene noted. “However, investments in vessel refurbishment and core business optimization are laying the groundwork for potential profitability in future periods.”

Maintenance work on cruise vessels BALTIC PRINCESS and SILJA SERENADE during the beginning of the year lasted a total of 68 days when the vessels were out of service. Investments aimed at extending vessel lifespans and improving passenger experience totaled EUR 22 million. In addition to the dividend-related income tax obligations, the company’s financial burden was further impacted by loan repayments and interest expenses.

“Tallink continues to actively reduce its debt load and invest in its fleet. We aim to maintain an optimal number of vessels on main routes, find utilization options for idle ships, and remain a strong dividend stock for our shareholders,” Nõgene concluded.

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