Company Overview - DFDS operates a transport network in and around Europe with an annual revenue of DKK 30 billion and employs 16,500 full-time staff [3] - The company provides services for moving goods in trailers by ferry, road, and rail, as well as offering complementary transport and logistics solutions [3] - DFDS also facilitates the movement of car and foot passengers on short sea and overnight ferry routes [3] - Founded in 1866, DFDS is headquartered and listed in Copenhagen [3] Upcoming Financial Report - DFDS is set to publish its Q3 2025 report on 6 November 2025 at approximately 07:30 CET [1] - The report will be presented by CEO Torben Carlsen and CFO Karen Boesen during a live conference call [1] - Following the presentation, there will be a Q&A session for investors, analysts, and other interested parties [1] Conference Call Details - The Q3 conference call is scheduled for 6 November 2025 at 10:00 CET [2] - Participants must register in advance to access the call, with an access code provided via email after registration [2] - Live-streaming of the conference call will be available through a designated link [2]

Core Insights - AS Tallink Grupp reported a 3.0% increase in passenger numbers for Q3 2025 compared to Q3 2024, carrying 1,766,335 passengers, while cargo units transported decreased by 9.8% to 60,306 [2][3] - The Group's unaudited consolidated revenue for Q3 2025 was EUR 233.1 million, a slight increase from EUR 231.9 million in Q3 2024, with an EBITDA of EUR 68.9 million and a net profit of EUR 40.8 million [3][10] Revenue and Operational Performance - Revenue from route operations, the Group's core business, increased by EUR 1.3 million to EUR 194.9 million compared to Q3 2024, although the segment result decreased to EUR 46.5 million from EUR 48.1 million [4] - The Estonia-Finland route saw a 10.1% increase in passenger numbers, with revenue rising by EUR 8.6 million to EUR 95.4 million, while the segment result decreased by EUR 1.2 million to EUR 30.2 million [5] - Finland-Sweden routes experienced a 1.4% decrease in passenger numbers, with revenue increasing by EUR 0.4 million to EUR 73.0 million, but the segment result fell to EUR 12.2 million [6] - The Estonia-Sweden routes faced a significant 23.5% drop in passenger numbers, leading to a revenue decrease of EUR 7.7 million to EUR 26.5 million, although the segment result increased to EUR 4.1 million [7] Financial Metrics - The Group's gross profit for Q3 2025 was EUR 67.2 million, consistent with the previous year, while EBITDA was EUR 68.9 million compared to EUR 68.4 million in Q3 2024 [8] - Amortization and depreciation expenses decreased by EUR 1.3 million to EUR 23.0 million, influenced by the sale of two vessels [9] - Net finance costs declined by EUR 2.2 million year-on-year to EUR 4.9 million due to reduced loan balances and lower interest rates [9] Investments and Financial Position - Investments in Q3 2025 totaled EUR 5.5 million, primarily for maintenance and IT system improvements [11] - The Group's net debt decreased to EUR 432.7 million from EUR 459.7 million at the end of Q2 2025, with a net debt to EBITDA ratio of 3.4 [15] - Cash and cash equivalents at the end of Q3 2025 were EUR 31.9 million, with a total liquidity buffer of EUR 131.9 million [16] Dividends - The Group's dividend policy allows for a minimum payment of EUR 0.05 per share, with a total dividend of EUR 44.6 million approved for 2025, paid in two installments [19]

Core Insights - AS Tallink Grupp reported a net loss of EUR 2.5 million in Q2 2025, a significant decline from a net profit of EUR 6.1 million in Q2 2024, indicating challenges in profitability [3][11] - The Group's total revenue decreased by EUR 3.1 million to EUR 207.0 million compared to EUR 210.0 million in the same quarter last year, reflecting operational difficulties [3][21] - Passenger numbers increased by 2.5% year-on-year, totaling 1,488,128 passengers, while cargo units transported saw a significant decline of 22.8% [2][21] Financial Performance - The Group's unaudited EBITDA for Q2 2025 was EUR 37.4 million, down from EUR 46.6 million in Q2 2024, indicating a decrease in operational efficiency [3][21] - Gross profit declined by EUR 7.8 million to EUR 39.1 million compared to EUR 46.8 million in the same quarter last year [9][21] - Revenue from route operations, the Group's core business, decreased by EUR 1.0 million to EUR 167.8 million compared to Q2 2024 [4][21] Segment Analysis - The Estonia-Finland route saw a 4.9% increase in passenger numbers, but cargo units transported decreased by 23.9%, with revenue remaining stable at EUR 84.6 million [5][21] - Finland-Sweden routes experienced a 2.8% increase in passengers, with revenue rising by EUR 1.8 million to EUR 60.4 million, despite a 32.4% drop in cargo units [6][21] - Estonia-Sweden routes faced a 10.9% decrease in passengers and a revenue drop of EUR 2.9 million to EUR 22.9 million, reflecting operational challenges [7][21] Investments and Financial Position - The Group's investments in Q2 2025 amounted to EUR 8.4 million, primarily for maintenance and refurbishment of vessels [15][21] - As of June 30, 2025, the Group's net debt was EUR 459.7 million, down from EUR 569.1 million at the end of Q1 2025, improving the net debt to EBITDA ratio to 3.6 [16][21] - Cash and cash equivalents increased to EUR 36.0 million from EUR 15.9 million at the end of Q1 2025, indicating improved liquidity [17][21] Operational Challenges - Demand was affected by low consumer and business confidence, economic challenges in core markets, and global geopolitical tensions [13][21] - The Group operated 13 vessels at the end of Q2 2025, including 3 vessels on charter and 2 vessels in lay-up, reflecting operational adjustments [13][21]

Core Viewpoint - The company is experiencing a transitional year in 2025, focusing on improving financial performance after challenges faced in 2024, with an expectation of better earnings trends in the upcoming quarters [5][9]. Financial Performance - Q1 2025 revenue increased by 8% to DKK 7.5 billion compared to Q1 2024 [4][6]. - EBITDA decreased by 22% to DKK 748 million in Q1 2025 from DKK 957 million in Q1 2024 [4]. - EBIT turned negative at DKK -117 million in Q1 2025, down from DKK 200 million in Q1 2024 [4]. - Adjusted free cash flow improved significantly to DKK 246 million in Q1 2025, a recovery from DKK -327 million in Q1 2024 [4][6]. - Return on Invested Capital (ROIC) for the last twelve months (LTM) was 3.4%, down from 6.9% in the previous year [4]. Strategic Focus Areas - The company is addressing three specific focus areas to enhance performance, including revenue growth, EBIT recovery, and improved cash flow [6][8]. - Actions taken include price increases, capacity adjustments, headcount reductions, and closure of unprofitable activities [8]. Market Adaptation - The company is adapting its Mediterranean ferry operations to the changing competitive environment and aims to achieve breakeven for its Türkiye & Europe South logistics by the end of 2025 [7][10]. - The expansion of the transport network is aligned with geopolitical trends favoring nearshoring, particularly in regions like Türkiye and Morocco [10]. Economic Outlook - The earnings outlook for 2025 remains unchanged, with an expected EBIT of around DKK 1.0 billion [13]. - Short-term market conditions are expected to remain challenging due to uncertainties from US policies and muted European economic growth [11].