Port of Tallinn Group’s profit in 9M’2022 was EUR 24 million, up 26% YoY
In the third quarter, Port of Tallinn Group’s revenue, adjusted EBITDA and profit increased year-on-year, according to the company’s press release. Group revenue amounted to EUR 36 million in the third quarter, increasing by 13% compared to the same period last year. The group’s adjusted EBITDA in the third quarter was EUR 18 million (+5%) and the profit was EUR 12 million (+11%). In the 9-month summary, the revenue was EUR 93 million (+15%), the adjusted EBITDA was EUR 47 million (+14%) and the profit was EUR 24 million (+26%).
The Group’s results were strongly affected by the lifting of the COVID-19 restrictions and recovery of passenger numbers, as well as the continued decline in cargo volumes. As a result of lifting the restrictions and increased passenger confidence, the number of passengers more than doubled in 9 months, especially on the Helsinki route (+137%), in addition, the number of cruise passengers more than tripled. However, compared to the pre-pandemic level of 2019, we are still 40% below in passenger numbers. The decline in cargo volumes is mainly due to the fourth consecutive quarter of decline in dry bulk and liquid bulk cargo volumes. In shipping, the strong third quarter was supported by additional voyages of ferry Regula based on growing demand; and chartering of Botnica at 100% utility rate.
The revenue and profit growth in both 9 months and the third quarter was driven by the continued strong recovery of the passenger business, which also covered the negative effects of the sanctions on cargo business. The 9-month revenue and adjusted EBITDA of the passenger harbours segment even exceeded the segment’s result of full year 2021. At the same time, the pressure of inflation on operating and labor costs strengthened, which reduced the EBITDA margin. The negative impact of the imposed sanctions has turned out to be smaller than expected, in 2022 it is estimated at EUR 2.5 million, as the sanctions have been implemented gradually during the year.
