LHV Institutional Baltic Insight, October 6th, 2021
* In September 2021, TAL’s monthly PAX number expanded 27.6% y-o-y (-20.4% m-o-m) to 310,300, with the total number of passenger cars transported advancing 4.0% y-o-y (-17.4% m-o-m) to 64,600. TAL’s total cargo traffic grew 4.0% y-o-y to 34,000 units in September, up 18.0% m-o-m and reaching the highest monthly volume since March 2020.* The recent rights issue of TAL generally strengthened the equity capital of the Group for the longer-term sustainability of operations in case of a prolonged COVID-19 pandemic. Even after the full removal of travel limitations, the recovery of PAX traffic to pre-crisis numbers may take several years in a worst-case scenario. TAL needed to strengthen its capital base, as it is likely facing some pressure from its lenders. Currently, the Group does not meet its regular loan covenants, especially concerning the required net debt/EBITDA levels. Considering the potential third wave of the pandemic this autumn and continuous recommendations from the Nordic governments still to avoid unnecessary travel abroad, a strong recovery in PAX traffic is unlikely any time soon.
* Please also refer to the tables in the attachment.
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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