LHV Institutional Baltic Insight, March 3rd, 2021
* Tallink Grupp’s (TAL1T ET) PAX flows deteriorated further in February 2021, following the additional travel limitations imposed by Finland from 27th January. The current travel and movement restrictions reflect the worsening pandemic situation, given a large number of new COVID-19 infections in the Baltics as well as the Nordic countries. Adding to the negatives, TAL registered a setback in total cargo flows, driven mostly by sluggish traffic on the main route between Estonia-Finland.* In February 2021, TAL’s monthly PAX number dropped 88.9% y-o-y (-38.8% m-o-m) to 74,100, with total passenger cars declining 75.2% y-o-y (-50.2% m-o-m) to 18,600. TAL’s total cargo traffic decreased 24.1% y-o-y (-3.2% m-o-m) to 26,400 units in February.
* On 1st March, TAL announced that it had filed an action against Tallinna Sadam (TSM1T ET) with Harju County Court with a claim of EUR 15.4m, demanding compensation from TSM for abusing the dominant position in the market for the provision of port services in the Old City Harbour. According to the initial comment from TSM, the company sees the claim as unreasonable and intends to stand up for the interests of its shareholders. TSM also comments it has been holding price negotiations with TAL to reach an agreement on the port dues established for passenger ships, but TAL’s demands have been unreasonable so far. Considering the current complicated market situation due to the pandemic, and the fact that TAL recently received an emergency loan of EUR 100m funded by the Estonian government, and that the Group may need additional government support in case of prolonged recovery from the pandemic, we find such claim from TAL against a majority government-owned company a bit surprising.
Tallink Grupp AS is a ferry operator providing mini-cruise and passenger transport services in the Baltic Sea region. The Company also offers cargo services on the various routes between Finland-Sweden, Estonia-Finland, Estonia-Sweden, Finland-Germany, and Latvia-Sweden under the brand names of Tallink and Silja Line. In addition, the Group operates four hotels in Tallinn and one in Riga. As of March 28, 2013, the Company's major shareholder was Infortar AS with a stake of 35.81%.
LHV Bank is an independent pan-Baltic bank, based on Estonian capital. The company was founded in 1999 by two founders of Hansapank (today’s Swedbank in the Baltics) and has been offering a full range of investment services for 15 years. In May 2009, LHV received a credit institution licence allowing it to provide all banking services.
The head office is situated in Tallinn, Estonia. Cross-border services are offered in Vilnius, Lithuania and in Riga, Latvia. LHV provides brokerage (institutional and retail), asset management, banking and capital markets services. Compared to other banks, we are more innovative and have more solid experience in investment and entrepreneurship.
The Bank, together with the Group asset management company employs over 320 people. LHV Group shares are listed on Nasdaq Tallinn.
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