The company's CEO, Paavo Nõgene, attributed the poor financial results to the challenging economic environment.
“The first quarter was undoubtedly challenging for the company. 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,” said Paavo Nõgene, CEO of AS Tallink Grupp. “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,” Nõgene added.
The Group’s unaudited consolidated revenue for the first quarter totaled EUR 137.3 million. EBITDA (earnings before interest, taxes, depreciation and amortization) was negative at EUR 3.8 million, and the net loss amounted to EUR 33.2 million. Investments during the first quarter totaled EUR 13.3 million, most of which were allocated to the refurbishment of the cruise ferries Baltic Princess and Silja Serenade. 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 EUR 20.8 million.
“The vessel dockings in the first quarter should also be viewed as an investment in technology and the customer experience. 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,” noted Nõgene.
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