Estonia's Tallink Q3 revenue rises on passenger and cargo volume growth

Overview

• Estonia ferry operator's Q3 revenue rose 5.8% yr/yr to EUR 246.7 mln

• Q3 net profit increased to EUR 43.8 mln from EUR 40.8 mln a year ago

• Q3 EBITDA edged down to EUR 67.9 mln from EUR 68.9 mln last year

Outlook

• Company did not provide specific financial guidance for upcoming quarters or full year in its press release

• Tallink says it is seeking new chartering options for unused vessels and extending existing agreements

• Company notes ongoing economic uncertainty and subdued consumer and business confidence in core markets

Result Drivers

• HIGHER FUEL COSTS - Co said geopolitical tensions drove up fuel costs by EUR 9.2 mln, or 45.5%, yr/yr

• PASSENGER AND CARGO VOLUME GROWTH - Co said increased passenger and cargo volumes helped offset weak consumer and business confidence

• EU ETS COSTS - Co said EU emissions trading costs rose 64.3% yr/yr to EUR 5.9 mln

Company press release:

Key Details

Analyst Coverage

• Wall Street's median 12-month price target for AS Tallink Grupp is €0.80, about 24% above its October 21 closing price of €0.65

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• Oct 22 - Estonia's Harju Elekter Q3 revenue falls 4.8% on postponed projects

• Oct 22 - Lithuania's Telia Lietuva Q3 revenue rises on strength in IT, mobile services; plans job cuts

• Oct 22 - Hong Kong's SITC nine-month revenue rises on higher freight rates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)