Tallink posts record-breaking nearly €55 million profit in third quarter ({{contentCtrl.commentsTotal}})

Tallink CEO Paavo Nõgene.
Tallink CEO Paavo Nõgene. Source: Siiim Lõvi/ERR

Listed Estonian shipper Tallink Grupp announced the unaudited financial results for its third quarter and first nine months of 2019 on Thursday, which included a record-breaking nearly €55 million profit.

In the third quarter of 2019, Tallink Grupp's unaudited net profit totaled €54.6 million, up on year from €46.1 million and also the company's highest ever third quarter net profit, Tallink said in a press release.

Third quarter earnings before interest, tax, depreciation and amortization (EBITDA) also increased by €12.1 million to €83.2 million.

The group's unaudited revenue for the third quarter increased by 1.5 percent on year to a total of €287.8  million. This record-breaking quarter is the result of the group carrying and serving record numbers of passengers in July and August as well as strong onboard and onshore sales, the company said.

In the first nine months of 2019, the group has earned a net profit of €44.2 million, a 5.8 percent, or €2.4 million, increase on year. The group's unaudited revenue for the nine-month period decreased by 0.1 percent on year to €722.7 million. The unaudited EBITDA, meanwhile, increased by almost €19 million to €137.7 million.

The company's nine-month financial result was positively impacted by its very strong third quarter, but negatively impacted by the docking of seven of the company's vessels in the first half of the year.

Passengers and business development

"The record-breaking third quarter is the result of a stable growth in passenger numbers, improved service marginal for onboard activities, strong cost control, investments made into achieving greater energy efficiency for our vessels as well as the successful agreement to partially fix fuel prices at the end of last year," Tallink Grupp CEO Paavo Nõgene said.

In addition to serving record numbers of passengers, the third quarter was also a busy one for the group from a business development perspective as well, he continued.

"We established a subsidiary in Singapore, are taking part in Singapore airport tender processes and are seeking other opportunities for expansion in Asia," Nõgene said. "We also acquired the franchise rights to operate Burger King restaurants in the Baltics, and we have appointed two strong senior managers to the group's management team — a head of international shore trade as well as a group customer experience manager."

The CEO also noted that the company is focusing strongly on further developing and implementing corporate and social responsibility practices in its business with the aim of pioneering responsible shipping in the Baltic Sea region.

AS Tallink Grupp provides passenger and cargo transport services in the northern part of the Baltic Sea region. It owns 14 vessels and operates seven ferry routes under the Tallink and Silja Line brands, and employs over 7,400 people in Estonia, Finland, Sweden, Latvia, Russia and Germany. Tallink shares are listed on the Tallinn Stock Exchange (TSE) and Helsinki Stock Exchange (HSE).

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