AS Tallinna Sadam financial results for 2018 3rd quarter and 9 months

The results of the third quarter were mainly driven by the following: Substantial increase of the liquid bulk volumes and revenueIn the ferry segment an additional ferry in the summer period on Saaremaa lineAdditional revenue from the M/V Botnica ice management and escort service chartering...

In the third quarter and 9 months of 2018, 15/11/2018 (informazione.news - comunicati stampa - turismo)

The results of the third quarter were mainly driven by the following:

Revenue
In the third quarter, revenue grew by EUR 6.2 million, i.e. 19%, generating most of the revenue growth in 9 months, which grew by EUR 6.9 million, i.e. 7% year-on-year, to EUR 101.1 million. In the third quarter there was revenue growth in all business segments, of which the most in the segment “other” (by EUR 2.9 million, i.e. 70% y-o-y) due to start of the summer season and began providing escort and ice management services in northern Canada from the end of June.
In the ferry segment the revenue grew in the third quarter by EUR 2.5 million, i.e. 13% year-on-year, mainly due to additional trips and the ferry put on the route for the high-season in summer.
In the cargo harbours' segment, the revenue increased, mainly due to significant growth in the volume of liquid bulk cargo in the third quarter, increasing the segment's 9-month revenue by EUR 1.5 million, i.e. 16%.
In the passenger harbours' segment the increase of revenue was caused by the growth in passenger numbers, which was mainly supported by the increase of cruise revenue.

EBITDA
In the third quarter, the adjusted EBITDA amounted to EUR 24 million, growing by EUR 6.8 million i.e. 40% year-on-year. In 9 months the adjusted EBITDA grew by EUR 6 million and totaled up to EUR 59.7 million. Based on the segments, the 9-months adjusted EBITDA increased in the ferry segment and the segment 'other' and decreased in the passenger harbours segment and cargo harbours segment. Adjusted EBITDA for the third quarter improved in all segments; growth was the strongest in the ferry segment and the segment 'other'. The adjusted EBITDA margin for the first 9 months rose expectedly from 26.6% to 43.2% in the ferry segment, from 43.8% to 60.8% in the segment 'other' and decreased slightly in other segments, which resulted a rise in the Group's overall margin from 57.0% to 59.1%.

Net profit
Net profit returned to growth in the third quarter due to the revenue increase, growing by EUR 6.6 million, or 58% year-on-year, amounting to EUR 18.1 million. In connection with the declaration of a record dividend of EUR 105 million in the second quarter of 2018 compared with EUR 48 million in 2017, income tax expense increased by EUR 14.3 million to EUR 26.3 million, which resulted in a profit of EUR 15.8 million for the 9 months, showing a decrease of EUR 9.6 million compared to the profit earned in the comparative period. According to the management estimates, the Group shall achieve the profit target set for the 2018 and there will be no deviations from the dividend policy.

Investments
Investments made in the third quarter totaled EUR 2.9 million, in 9 months the Group made investments of EUR 8.1 million. In the 9 months of 2017, the investments totaled EUR 29.5 million of which around EUR 20 million was related to the construction of new ferries. In the 9 months of 2018, the largest investments were made in the reconstruction of traffic areas and the implementation of automated traffic control systems at the Old City Harbour (Smart Port), the dry docking of M/V Botnica which is carried out every five years and the start of terminal D reconstruction works.

Interim condensed consolidated statement of financial position:

Interim condensed consolidated statement of profit or loss:

Interim condensed consolidated statement of cash flows:

Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which in 2017 serviced 10.6 million passengers and 19.2 million tons of cargo. In addition to passenger and freight services, Tallinna Sadam group also operates in shipping business via its subsidiaries – OÜ TS Laevad provides ferry services between the Estonian mainland and the largest islands, and OÜ TS Shipping charters its multifunctional vessel m/v Botnica for icebreaking and construction services in Estonia and offshore projects abroad. Tallinna Sadam group is also a shareholder of an associate AS Green Marine, which provides waste management services. Tallinna Sadam group's sales in 2017 totaled EUR 121.3 million, adjusted EBITDA EUR 66.5 million and net profit EUR 26.4 million.
Additional information:

Marko Raid
CFO, Member of the Management Board

Additional information:

Marju Zirel
Head of Investor Relations
AS Tallinna Sadam
m.zirel@ts.ee

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