DFDS (DFDS) Q1 2019 earnings summary

Executive summary

• Q1 revenue rose 11% YoY to DKK 3.87bn and EBITDA before special items increased 13.4% to DKK 677m, led by Mediterranean expansion and strong North Sea performance.

• Easter-related passenger weakness and one-off Baltic vessel costs weighed on results; FY 2019 outlook was unchanged.

Financial highlights

• Revenue was DKK 3,870m vs DKK 3,485m; EBITDA before special items was DKK 677m vs DKK 597m, with a 17.5% margin vs 17.1%.

• EBIT before special items increased 2% to DKK 234m; reported EBIT rose 8% to DKK 219m, including DKK 15m of special-item costs.

• Depreciation rose DKK 72m to DKK 446m, mainly from the full-year Mediterranean impact; finance costs increased DKK 50m, mainly related to Mediterranean expansion.

• Profit before tax was DKK 159m before special items, down 22%; reported profit before tax was DKK 144m, down 19%.

Outlook and guidance

• FY 2019 revenue growth guidance remained 10–12%; EBITDA before special items guidance was DKK 3.8–4.0bn vs DKK 3.589bn in 2018 restated for IFRS 16.

• FY EBITDA guidance comprised Ferry DKK 3,425–3,600m, Logistics DKK 425–450m and non-allocated items of DKK -50m.

• Investment guidance increased from DKK 2.5bn to DKK 2.8bn, including vessels for the Gothenburg–Zeebrugge route.

• Improvement projects targeted DKK 100m in 2019; digital development costs could reach DKK 100m.