Tallink passengers up but revenue drops in ‘mixed’ 2018

By Luke Barras-hill |

TallinkAS Tallink Grupp CEO Paavo Nõgene has declared 2018 ‘a year of contrasts’ as record passenger numbers were offset by a 1.8% fall in revenues to €949.7m ($1.08bn).

An unaudited financial results statement released yesterday to the stock exchange pointed to a 14% shave in profits to €40m ($45m) in the face of a €16.6m rise in fuel costs, a €10.8m reduction in charter revenues, and the impact of a longer-than-planned dock for one of its vessels.

Notwithstanding this, Group revenues from route operations rose by 0.08% to €883.7m, with passenger volumes reaching 9,756,611 – an increase of nearly 900 passengers year-on-year.

TallinkCEO

Paavo Nõgene, CEO and Chairman of the Management Board, AS Tallink Grupp.

ESTONIA-FINLAND ROUTE RESILIENCE

Almost all the Group’s routes benefitted from the uplift, notably Estonia-Sweden, Estonia-Finland and Latvia-Sweden.

Investments totalled €36.4m in 2018 with several of the Group’s ships benefitting from technical upgrades and updates to passenger and cabin areas.

Commenting on the results, Nõgene said: “On the one hand we achieved a number of records in terms of passenger numbers, cargo units and numbers of trips completed by our vessels.

“I am particularly pleased that the Estonia-Finland routes, with significant competitive pressures and other challenges on the route, have seen passenger numbers increase and even produce all-time records.

“It is clear testament that the development of our services on these key routes between our two countries have paid off and future developments in this area are well-founded. On the other hand, several factors negatively influenced our financial results, so our total outcome for the year was not record-breaking.

“The beginning of 2019 has been a busy time for us with many of our vessels and our hotels undergoing planned renewals and upgrades, all aimed at offering even more and an even better service to our current and future customers.

“Similarly, we have recently reinvigorated and brought new energy into Tallink Grupp’s management team. I am sure that with an upgraded fleet and hotels, and with a refocused and motivated professional team, we will do our best to deliver the results expected of us in Tallink Grupp’s 30th anniversary year.”

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