AS Tallinna Sadam (TSM1T) Q3 2024 earnings summary

Executive summary

• Nine-month revenue rose 2.5% year-over-year to €90.8 million, driven by higher charter fees, ferry service, and lease income.

• Q3 2024 saw a 7.2% increase in cargo volume and a 4.3% rise in passenger volumes; for 9M, cargo volumes increased 2.0% to 9.7 million tonnes and passenger numbers rose 3.2% to 6.3 million.

• Revenue for Q3 was €31.2M, down 0.7% year-over-year; 9M revenue rose 2.5% to €90.8M.

• Operating profit for 9M increased 16% to €23.2M; profit for the period up 14.1% to €14.9M.

• Investments surged 77.1% in Q3 and 206.9% over 9M, totaling €33.5M, mainly for quay construction and ferry upgrades.

Financial highlights

• Adjusted EBITDA for 9M was €40.9M (+5.4% YoY), with a margin of 45.0%; Q3 adjusted EBITDA was €13.3M (-1.7% YoY), margin 42.6%.

• Q3 profit for the period was €5.6M, down 6.5% YoY; 9M profit €14.9M, up 14.1%.

• Free cash flow for 9M was €7.4M, down from €24.6M YoY; net cash flow for 9M was negative €7.7M.

• Net debt at period end was €161.7M, up from €142.1M at prior year-end.

• Investments totaled €33.5M, up €22.6M YoY.

Outlook and guidance

• Passenger and cargo volumes are expected to continue recovering, though cruise traffic remains below pre-pandemic levels.

• Ongoing investments in infrastructure, digitalization, and offshore windfarm base harbour development support long-term growth.

• Preparations for reducing state shareholding and increasing efficiency are in progress.