Regardless of the reduced trips and passenger and cargo units, the company’s unaudited revenue increased by 11.5% in Q2 2023 compared to the same period in 2022, totalling EUR 229.7 million (EUR 206.0 million in Q2 2022). The group’s unaudited EBITDA in Q2 2023 increased year-on-year by 138.7%, totalling EUR 68.5 million (EUR 28.7 million in Q2 2022). The strong effort and positive results in many areas have resulted in a net profit for the second quarter of 2023 of EUR 33.4 million (net loss of EUR 0.7 million in Q2 2022). 

The strong results of the second quarter of the year mean that the company has delivered a profitable first half year for the first time since 2015. The total number of passengers carried in H1 2023 by the company’s seven passenger vessels that operated in regular traffic during the period (in addition to the two cargo vessels) was 2,590,858, which is 14% more than in H1 2022 (2,272,435 in H1 2022). The number of cargo units carried in the first half of 2023 declined by 18.6% compared to the same period last year, totalling 172,091 units (211,318 units in H1 2022). In addition to fewer vessels in regular traffic in 2023 due to charters, there is one cargo vessel less operating on the company’s routes as the vessel SEA WIND was sold in spring 2022. 

The group’s unaudited revenue increased by 28.4% in H1 2023 compared to the same period in 2022, totalling EUR 400.9 million (EUR 312.2 million in H1 2022). The unaudited EBITDA for H1 2023 was EUR 95.6 million, which is 439% higher than in H1 2022 (EUR 17.7 million in H1 2022). The unaudited net profit at the end of H1 2023 was EUR 28.0 million (EUR 40.7 million net loss at the end of H1 2022). 

Tallink continues with the loan repayments and debt reduction and the group’s net debt had reduced by EUR 73.7 million compared to 31 December 2022. The company continues to maintain strong liquidity at the end of Q2 2023 with the group’s cash and cash equivalents amounting to EUR 57.6 million (EUR 90.6 million at the end of Q2 2022) and the group had EUR 135.0 million in unused credit lines (EUR 116.7 million on 30 June 2022). The total liquidity buffer (cash, cash equivalents and unused credit facilities) at the end of Q2 2023 amounted to EUR 192.6 million (EUR 207.3 million on 30 June 2022). The company’s net debt to EBITDA 12-months trailing was 3.1 The total number of company shareholders at the end of the first half year 2023 was 39,149.

The company continued to make investments in the modernisation and technical upgrades to its vessels in H1 2023, investing a total of EUR 16.2 million during the first half year 2023 in the upgrades. 

Commenting on the results of the first half year of 2023, Tallink Grupp’s CEO Paavo Nõgene said: 
“The results of the first half of 2023 are proof that the decisions we have made over the last few years to speed up our recovery following the Covid crisis with vessel charters, were the right ones. The positive impact of the vessel charters is undeniable, especially at this time when the increased cost of living is still putting pressure on people’s travelling choices. Our current strategy to operate our regular routes with the most optimal number of vessels and charter out other vessels, is helping us on our road to recovery. 
“Our focus now is on maintaining profitability into the next two quarters of 2023 while continuing to reduce our debts accumulated over the crisis periods. The vessels we currently have operating on our four core routes are performing well with some room for growth should passenger numbers from further afield than our home markets see some increases in the year or so ahead. The short-term plan is to continue operating with the same business model of the last few years, with a mix of regular traffic and charter contracts, until such time when demand on our current key routes or elsewhere increases and warrants additional capacity. 

“We remain grateful to customers and employees who have understood the necessity for the operating decisions we have made and to our loyal shareholders for their continued faith in our business riding out the storm.” 

© Shippax