Estonian shipping company AS Tallink Grupp reported a 3.6% increase in passenger numbers for October 2023, reaching a total of 470,702. This growth was accompanied by a 1.5% rise in passenger vehicles, amounting to 63,151 units. However, the company also registered a notable decline in cargo units during the same period, with a decrease of 17.7% to 27,137 units.
The company's different routes exhibited varying performance trends. The Finland-Sweden route, which includes Helsinki-Stockholm and Turku-Kapellskär services, experienced a decrease in passengers by 12.7%. On the other hand, the Estonia-Finland and Estonia-Sweden routes, operated by MyStar and Megastar shuttles along with the Victoria I cruise vessel and two cargo vessels on the Tallinn-Stockholm route, witnessed passenger increases of 12.9% and 9.9% respectively.
Cargo units on the Finland-Sweden and Estonia-Finland routes saw a decline of 22%, while the Estonia-Sweden route recorded an increase of 21.3%. In terms of passenger vehicles, there was an 18% drop on the Finland-Sweden route. However, the Estonia-Finland route observed an increase of 3.8%, while the Estonia-Sweden route reported an 11.3% decrease.
Anneli Simm, Investor Relations Manager at AS Tallink Grupp, disclosed that starting from October 12, the Victoria I cruise vessel initiated a new 22-hour cruise service.
These figures were released by Barchart Market Data Solutions for informational use only and are not intended as trading advice. No representations about their accuracy were made by Barchart Market Data Solutions, Morningstar, Zacks Investment Research, or Edgar Online.
InvestingPro Insights
To enhance our understanding of AS Tallink Grupp's performance, let's examine some key metrics and tips from InvestingPro.
InvestingPro Tips indicate that Tallink has consistently increasing earnings per share and is expected to be profitable this year, which aligns with the reported passenger growth. However, it's important to note that the company's revenue growth has been slowing down recently. This could be related to the decline in cargo units reported for October 2023. Additionally, the company's short-term obligations exceed its liquid assets, a factor that could impact its financial stability.
InvestingPro Data provides further insights into the company's financial health. Tallink has a market capitalization of $521.2M and a low P/E ratio of 5.11, which suggests the stock may be undervalued. The company's revenue for the last twelve months as of Q3 2023 stood at $893.59M, marking a growth of 15.1% despite the recent slowdown. The Gross Profit for the same period was $222.79M, indicating a healthy profit margin of 24.93%.
For those seeking a more comprehensive understanding of Tallink's financial performance, InvestingPro offers a multitude of additional tips and metrics.
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