Tallink`s revenue increased by 15 percent
in the third quarter

15/07/2010

AS Tallink Grupp`s revenue increased by 15 percent to 202 million Euros in the third quarter (March-May) of the financial year 2009/2010. Company’s EBITDA increased by 110% from 16 million Euros to 30 million Euros and the net loss decreased from 17 million Euros to 3 million Euros compared to the 3rd quarter of the previous financial year.

Group’s Management stated that this noticeable improvement was influenced by strong passenger volumes and continued recovery in the passenger revenues as more effort has been put to capacity and revenue management and product offering. “In the third quarter the passenger numbers increased by 18 percent year on year to 2.16 million passengers - setting a new all time record for the third quarter. In the third quarter the general administration costs decreased by 13 percent year on year, making it the 10th consecutive quarter with cost improvement. By introducing several new vessels during the previous years the Group has gone through significant product improvement. The focus has now moved to the more detailed level of product development which is also very important”, was said in the Management Report.

The Management continues to focus on cost efficiency and on improvement of the Group’s results. The sale or charter of older and non-performing vessels is a high priority. There are currently several negotiations open to either charter or sell some of the older and non-performing vessels.

In the third quarter the Group’s result improved as a result of the strong growth of the revenue, despite the price driven increase in fuel costs by 8 million Euros.

Accumulated revenue for the nine months of current, 2009/2010 financial year is 542 million Euros and the net loss is 21 million Euros, which is an improvement by 19 million Euros compared to the nine months of the 2008/2009 financial year.

During the current financial year Tallink has reduced it’s debt by 5 percent, by 60 million Euros. In the end of May 2010 the Group’s cash and equivalents amounted to 43 million Euros. Same time last year the respective level was 29 million Euros. According to the management the higher liquidity position, lower interest payments and no capital commitments for the coming periods are strengths for the smooth and stable operations.

Detailed, unaudited financial report of the third quarter results is available on the corporate website www.tallink.com and on the Nasdaq OMX Baltic Stock Exchange website www.nasdaqomxbaltic.com

AS Tallink Grupp is the leading passenger shipping company on the Baltic Sea owning 19 vessels and operating under brands of Tallink and Silja Line on seven different shipping routes. Tallink has 6800 employees in Estonia, Finland, Sweden, Latvia, Russia and Germany.

Source: Tallink Group