AS Tallink Grupp Unaudited Consolidated Interim Report for the Q2 2025

The results of AS Tallink Grupp for the Q2 2025 will be introduced at an Investor Webinar held today at 12:00 (EEST). To participate, please join via the following link; we kindly ask participants to provide their questions latest by 11:00 am by email to: investor@tallink.ee. Further details are available in a previously published announcement.

In the second quarter (1 April – 30 June) of 2025, AS Tallink Grupp and its subsidiaries (hereinafter referred to as “the Group”) carried 1 488 128 passengers, which is 2.5% more than in the second quarter of 2024. The number of cargo units transported decreased by 22.8% year-on-year amounting to 67 038. The number of passenger vehicles was up by 1.4% compared to the same period a year ago and amounted to 212 782.

The Group’s unaudited consolidated revenue amounted to EUR 207.0 million (EUR 210.0 million in Q2 2024). Unaudited EBITDA was EUR 37.4 million (EBITDA of EUR 46.6 million in Q2 2024) and the unaudited net loss for the period was EUR 2.5 million (net profit of EUR 6.1 million in Q2 2024).

The following operational factors impacted the Group’s revenue and operating results in the second quarter of 2025:

• Demand continued to be affected by low consumer and business confidence levels, the economic challenges in the Group’s core markets and global geopolitical tensions.

• As at the end of the quarter, the Group operated 13 vessels including 2 shuttle vessels, 6 passenger vessels, 3 vessels that were chartered out and 2 vessels that were in lay-up.

• The Group signed and executed the sale-purchase agreement with Irish Continental Group plc for the sale of the passenger vessel Star I in April 2025.

• The Group operated 3 hotels in Tallinn and 1 in Riga.

• Income tax on dividends in the amount of EUR 11.4 million was recorded in the second quarter of 2025.

• The Group’s net debt was EUR 459.7 million as at the end of the second quarter of 2025 (EUR 569.1 million as at 31 March 2025) bringing the net debt to EBITDA ratio to 3.6 as at 30 June 2025.

• In the second quarter of 2025, total loan repayment and interest payment amounted to EUR 53.6 million.

• The Group continues to focus on cost efficiencies from the previously implemented measures and maintaining profitable operations on its core routes.

• The Group regularly monitors the developments on its core routes including the capacity of each route and continues to look for new chartering options for vessels not used on the main routes and to work on extending the existing chartering agreements.

Sales and Results by Segments

In the second quarter of 2025, the Group’s total revenue decreased by EUR 3.1 million to EUR 207.0 million compared to EUR 210.0 million a year ago.

Revenue from route operations (the Group’s core business) decreased by EUR 1.0 million to EUR 167.8 million compared to the second quarter of 2024. The segment result from route operations (the Group’s core business) amounted to EUR 21.2 million compared to EUR 25.6 million in the second quarter of 2024.

The number of passengers carried on the Estonia-Finland route increased by 4.9% in year-on-year comparison. The number of transported cargo units decreased by 23.9%. Revenue from the Estonia-Finland route held steady compared to the same period a year ago and amounted to EUR 84.6 million while the segment result decreased by EUR 4.5 million to EUR 20.5 million, year-on-year. The segment reflects the operations of two shuttle vessels, MyStar and Megastar, and the cruise ferry Victoria I. A year ago, the cruise ferry Victoria I operated the Tallinn-Stockholm route from 31 May until 31 August 2024.

In the second quarter of 2025, the year-on-year increase in the number of passengers on Finland-Sweden routes was 2.8%. The number of transported cargo units decreased by 32.4%. The routes’ revenue increased by EUR 1.8 million to EUR 60.4 million and the segment result increased by EUR 0.4 million to EUR 1.9 million, year-on-year. The segment reflects the operations of one cruise ferry on the Turku-Stockholm (the cruise ferry Baltic Princess) and two cruise ferries on the Helsinki-Stockholm route (the cruise ferries Silja Serenade and Silja Symphony).

On Estonia-Sweden routes the number of carried passengers decreased by 10.9% and the number of transported cargo units decreased by 6.1% compared to the same period a year ago. Year-on-year, the revenue of Estonia-Sweden routes decreased by EUR 2.9 million to EUR 22.9 million. The segment loss increased by EUR 0.3 million to a loss of EUR 1.1 million. The Estonia-Sweden segment reflects the operations of the Tallinn-Stockholm and the Paldiski-Kapellskär routes. The Tallinn-Stockholm route was operated by the cruise ferry Baltic Queen. The Paldiski-Kapellskär route was operated by the passenger vessel Star I until 12 April and from thereon the route was operated by the passenger vessel Superfast IX. During the same period a year ago, the Paldiski-Kapellskär route was operated by two cargo vessels - Sailor and Regal Star. Also, the Tallinn-Stockholm route was operated by two cruise ferries, Baltic Queen and Victoria I, from 31 May to 31 August 2024.

Revenue from the segment Other decreased by a total of EUR 2.2 million and amounted to EUR 40.7 million. The segment result amounted to EUR 6.3 million decreasing by EUR 3.1 million compared to the same period a year ago. The decrease in revenues and result was mainly driven by fewer vessels on charter in the beginning of the quarter compared to the same period a year ago since the cruise ferry Romantika was chartered out at the end of May 2025. As at the end of the second quarter of 2025, the Group had 3 vessels on charter. Until May 2024, 4 vessels were in charter when the passenger vessel Superfast IX returned from long-term charter from Canada. At the end of the second quarter of 2024, the Group had 3 vessels on charter.

At the end of the second quarter of 2025, the following vessels were chartered out:

• The cruise ferry Romantika was chartered out in May 2025 to the Algerian state-owned enterprise Madar Maritime Company EPE/SPA for 9 months with an option to extend the agreement by 6+6 months upon its expiration.

• The cruise ferry Galaxy I was chartered out in September 2022 to Slaapschepen Public BV, an organisation nominated by Centraal Orgaan Opvang Asielzoekers (COA) in the Netherlands. In October 2024, the agreement was extended by 12 months until October 2025 with the option of extending the agreement at the end of the agreement period by 6+6 months.

• The cruise ferry Silja Europa was chartered out in August 2022 Slaapschepen Public BV, an organisation nominated by Centraal Orgaan Opvang Asielzoekers (COA) in the Netherlands. The charter agreement from December 2024 was effective from 1 January 2025 for six months. The agreement includes the option of extending the agreement at the end of the agreement period by another 7+6+6 moths. After the end of the initial term, the agreement was extended until the end of January 2026.

Earnings

In the second quarter of 2025, the Group’s gross profit declined by EUR 7.8 million to EUR 39.1 million compared to EUR 46.8 million in the second quarter of 2024. The Group generated EBITDA of EUR 37.4 million in the second quarter of 2025 compared to EUR 46.6 million a year ago.

Amortisation and depreciation expense decreased by EUR 1.5 million to EUR 22.8 million year-on-year. The decline was partly driven by the sale of the passenger vessel Star I in April 2025.

As a result of decreased outstanding loan balance and declining interest rates net finance costs declined by EUR 1.4 million year-on-year to EUR 5.7 million in the second quarter of 2025 (EUR 7.1 million in the second quarter of 2024).

The Group’s unaudited net loss for the second quarter of 2025 was EUR 2.5 million or EUR 0.003 per share. Among other factors the Group’s profitability was impacted by the vessels in lay-up. In the second quarter of 2024, the Group earned net profit of EUR 6.1 million or EUR 0.008 per share.

Investments

The Group’s investments in the second quarter of 2025 amounted to EUR 8.4 million (EUR 4.6 million in the second quarter of 2024). Majority of investments in vessels included the maintenance and refurbishment works on the cruise ferry Baltic Princess. The Group also continued to invest in the improvement of its IT systems.

Financial Position

At the end of the second quarter of 2025, the Group’s net debt amounted to EUR 459.7 million, down by EUR 89.2 million compared to the end of the first quarter of 2025. The net debt to EBITDA ratio was 3.6 at the reporting date (4.16 as at 31 March 2025).

As at 30 June 2025, the Group’s cash and cash equivalents amounted to EUR 36.0 million (EUR 15.9 million as at 31 March 2025) and the Group had EUR 92.0 million in unused credit lines (EUR 54.7 million as at 31 March 2025). The total liquidity buffer (cash, cash equivalents and unused credit facilities) amounted to EUR 128.0 million (EUR 70.5 million as at 31 March 2025).

During the quarter, the Group repaid loans and interest expense in the amount of EUR 53.6 million (EUR 24.9 million in the second quarter of 2024).

Dividends

In 2018, the Group adopted a dividend policy subject to which dividends of a minimum amount of EUR 0.05 per share would be paid if the economic performance enables it.

The Annual General Meeting of Shareholders held on 20 May 2025 adopted a resolution to pay a dividend of EUR 0.06 per share in 2025 in the total amount of EUR 44.6 million. In 2025 the dividends are paid in two instalments. The first instalment of EUR 0.03 per share in the total amount of EUR 22.3 million was paid out on 2 July 2025 and the second instalment of EUR 0.03 per share will be paid out on 25 November 2025.

Key Figures

1 Alternative performance measures based on ESMA guidelines are disclosed in the Alternative Performance Measures section of Interim Report.

2 Does not include additions to right-of-use assets.

EBITDA: result from operating activities before net financial items, share of profit of equity-accounted investees, taxes, depreciation and amortization
EBIT: result from operating activities
Earnings/loss per share: net profit or loss/ weighted average number of shares outstanding
Equity ratio: total equity / total assets
Shareholder’s equity per share: shareholder’s equity / number of shares outstanding
Gross profit/loss margin: gross profit / net sales
EBITDA margin: EBITDA / net sales
EBIT margin: EBIT / net sales
Net profit/loss margin: net profit or loss / net sales
Capital expenditure: additions to property, plant and equipment – additions to right-of-use assets + additions to intangible assets
ROA: earnings before net financial items, taxes 12-months trailing / average total assets
ROE: net profit 12-months trailing / average shareholders’ equity
ROCE: earnings before net financial items, taxes 12-months trailing / (total assets – current liabilities (average for the period))
Net debt: interest-bearing liabilities less cash and cash equivalents
Net debt to EBITDA: net debt / EBITDA 12-months trailing

Consolidated statement of profit or loss and other comprehensive income

Consolidated statement of financial position

Consolidated statement of cash flows

Anneli Simm
Investor Relations Manager

AS Tallink Grupp
Sadama 5
10111 Tallinn, Estonia
E-mail anneli.simm@tallink.ee
Phone: +372 56157170

Attachments

• Tallink Grupp 2025 Q2 Financial Data

• Tallink Grupp 2025 Q2 ENG

• AS Tallink Grupp Corporate Presentation_July 2025