AS Tallinna Sadam (TSM1T) Q2 2024 earnings summary

Executive summary

• Revenue increased by 10.0% year-over-year in Q2 2024 and by 4.2% for the first six months to €59.6 million, driven by the earlier start of the MSV Botnica summer charter and Ferry segment growth.

• Adjusted EBITDA rose 27.1% in Q2 and 9.2% for the half-year to €27.6 million, with margin improving to 47.0% in Q2 and 46.3% for H1.

• Operating profit rose 55.1% in Q2 and 26.9% for the half-year to €15.9 million, while profit for the period surged 200.6% in Q2 and 31.5% for the half-year to €9.3 million.

• Investments grew significantly, up 53.9% in Q2 and 307.3% for the half-year, totaling €25.0 million, mainly in quay construction, ferry dry-docking, and IT systems.

• Passenger numbers increased by 2.4% year-over-year, while cargo throughput remained stable, declining slightly by 0.3%.

Financial highlights

• Revenue: €59.6 million (+4.2% YoY); Q2 revenue: €31.7 million (+10.0% YoY).

• Adjusted EBITDA: €27.6 million (+9.2% YoY); Q2: €14.9 million (+27.1% YoY); margin: 47.0% in Q2, 46.3% for H1.

• Free cash flow was €2.8 million for the half-year, down from €18.3 million in the prior year.

• Net cash flow was negative €3.8 million for the half-year, an improvement from negative €6.6 million last year.

• Net debt at period end: €164.1 million (+12.3% YoY).

Outlook and guidance

• Passenger business recovery is ongoing but remains below pre-pandemic levels, with further growth expected.

• Cargo volumes expected to remain under pressure due to geopolitical risks and changes in liquid bulk cargo.

• New ro-ro and container lines are being developed, and preparations are underway for offshore windfarm base harbour projects.

• Continued focus on environmental projects, including the TWIN-PORT VI initiative with the Port of Helsinki.

• Efficiency improvements and preparations for reducing state shareholding are planned.