Rough Q1 for Tallink Grupp with €33m net loss

The Tallink Grupp has published its unaudited financial results for the first quarter of the current financial year to the stock exchange, revealing a net loss for the period amounted to €33.2 million ($37.8 million).

“The first quarter was undoubtedly challenging for the company," said Paavo Nõgene, CEO of Tallink. "Consumer and business confidence remains low, with the economic situation in our home markets and ongoing global geopolitical tensions setting the tone.

"Additionally, extended docking periods and four idle vessels had a significant impact on our results. On the other hand, if we exclude the impact of the four idle vessels, our results are in line with those of the first quarter of 2019.

"We are working daily to resolve the issue of the idle vessels - for example, the passenger ferry Star I has now been sold and handed over to its new owner.”

The croup’s unaudited consolidated revenue for the first quarter totalled €137.3 million. Investments during the first quarter totalled €13.3 million, most of which were allocated to the refurbishment of the cruise ferries Baltic Princess and Silja Serenade.

Tallink said the 68-day maintenance works affected both passenger and cargo volumes on the Finland–Sweden routes. Loan repayments and related interest expenses in the first months of the year amounted to €20.8 million.

“The vessel dockings in the first quarter should also be viewed as an investment in technology and the customer experience," added Nõgene.

"We’re already seeing a clear uptick on the Finland–Sweden route - the feedback on the newly refreshed Baltic Princess has been very encouraging.

"Special cruises and surprises are in store across all our routes. Work is underway at every level to ensure the upcoming high season - spring and summer - meets our expectations.”