Tallink sees its revenue drop
Text Mark Taylor Photo AS Tallink Grupp
The Tallink Grupp has announced its financial results for the second quarter of 2024, covering the period from April 1 to June 30. The company seeing an 8.5% fall in revenue compared to the same period last year.
During this period, Tallink ships carried a total of 1,451,768 passengers, a decrease of 5.8 percent compared to the same period last year, which saw 1,541,081 passengers. However, the number of freight units transported increased by 1.7 percent to 86,813 compared to 85,359 in the second quarter of 2023. The number of passenger vehicles transported fell by 11.4 percent to 209,760 units, down from 236,756 units in the same quarter last year.
The company’s revenue for the second quarter of 2024 was €210.0 million, down 8.5 percent from €229.7 million in the second quarter of 2023. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) were 46.6 million euros, compared to 68.5 million euros in the same period last year. The net profit for this period was 6.1 million euros, down from 33.4 million euros in the second quarter of 2023.
By the end of the second quarter of 2024, Tallink Grupp’s net debt had decreased to 548.9 million euros from 581.0 million euros as of 31 March 2024.
For the first half of 2024, from 1 January to June 30, the company transported a total of 2.6 million passengers, a 1.4 percent decrease compared to the same period last year. Revenue for the first half of 2024 fell by 7.6 percent to 370.4 million euros compared to the first half of 2023. The net profit was 8.7 million euros, compared to 28.0 million euros in the same period last year.
The second quarter results were affected by a decrease in the company’s ship charters. In the end of the second quarter of 2024, three of the company’s ships were chartered out, compared to four at the beginning of the quarter and seven during the same period last year. Consequently, revenue from ship charters in 2024 was significantly lower. Additionally, two ships are currently idle in port following the end of their charter agreements (Romantika and Superfast IX). The results were also impacted by income taxes on dividends amounting to 9.2 million euros in the second quarter.
“Considering the current challenging operating environment, we achieved a stable result in the second quarter of this year. Consumer confidence has not improved, and personal finances remain tighter than usual. Political and economic turmoil in Europe and worldwide also affects tourism development in our region. We are now working hard to capitalise on the busy summer season and are seeking new plans for our currently idle ships,” commented Tallink Grupp’s CEO, Paavo Nõgene.
To learn more about this and similar topicsBaltic Sea Financial Results Passenger Transport Second Quarter 2024 Shipping Industry Tallink Grupp Tourism Impact
