Quarter April-June 2024

The quarter was largely marked by the announcement from the Swedish Transport Administration about renewed confidence in operating the Gotland traffic 2027–2035 and that they acquired the line between Copenhagen and Oslo for approximately DKK 400 million. The deal establishes Gotlandsbolaget in two more Nordic countries and is a clear direction for their expansive strategy. The result is positively affected by increased passenger volumes in the Gotland traffic and lower fuel prices.  

The net profit from the sale of ships amounted to SEK 0.0 million (291.7).

The financial net amounted to SEK 39.7 million (98.8), which was positively affected by higher interest income but negatively by exchange rate changes.

The profit after tax, including sales profit on sales, amounted to SEK 55.1 million (326.0), corresponding to SEK 22.0 (130.4) per share.

The period January-June 2024

Revenues amounted to SEK 989.0 million (927.1). The costs amounted to -982.1 MSEK (-981.7). The income and costs have been affected by services provided for Gotland Alandia Cruises and the discontinued operations within product tank. At the same time, higher revenues in the Gotland traffic and lower fuel costs have had a positive impact.

Adjusted operating profit amounted to SEK -39.4 million (-54.6), corresponding to SEK -15.8 (-21.8) per share. The improvement is mainly due to stronger results in the Gotland traffic, but is negatively affected by establishment costs from our share in Gotland Alandia Cruises.

Capital gains on the sale of ships amounted to SEK 0.0 million (261.2) net.

The financial net amounted to SEK 162.4 million (120.6) as a result of rising interest rates and increased investments in the money market and, as in the previous year, positive exchange rate effects.

The profit after tax, including capital gains on sales, amounted to SEK 92.3 million (255.9), corresponding to SEK 36.9 (102.4) per share.

Significant events during the quarter

• On 10 June, it was announced that Gotlandsbolaget is buying the DFDS line between Oslo-Fredrikshavn-Copenhagen for approximately DKK 400 million. The purchase includes two cruise ferries and a business with approximately 800 employees.
• The annual general meeting on 11 June decided on the re-election of board members Björn Nilsson, Eric D. Nilsson, Lars Wedenborn, Jonas Åman, Carl-Johan Hagman and Ann-Marie Åström. The board elected Ann-Marie Åström as chairman and Björn Nilsson as vice chairman.
• On 24 June, the Swedish Transport Administration announced that Gotlandsbolaget and its subsidiaries had received renewed confidence to operate the procured the Gotland traffic during the next traffic period 2027–2035.

Comment from CEO

Renewed confidence in operating the Gotland traffic

At the end of June, we were notified of renewed confidence to operate the Gotland traffic during 2027-2035, with an option for another two years. The procurement took place in full competition throughout the EU, and we are very happy and proud of the announcement. In order to competitively respond to the different conditions that prevail in Europe today, the winning bid is based on a Swedish flag and Swedish crew with Swedish collective agreements, and a Danish subsidiary that will be responsible for financial and strategic management.

For most of our employees in Destination Gotland, the Danish subsidiary's responsibility for financial and strategic management means small changes in daily life, so also for our passengers. But it is an important strategic issue, for us and for Sweden. The government is working to develop the Swedish tonnage tax, which could mean that Swedish shipping gets equal terms with international shipping companies. Gotlandsbolaget looks with confidence at the possibility that the Gotland traffic will be included in its entirety in the developed Swedish tax system. If the government makes this decision, we plan to also place the responsibility for financial and strategic management for the Gotland traffic on Gotland. But it is urgent - notification is needed in 2025 for one of Sweden's most strategically important ferry lines to be operated entirely from Sweden - as it should be.  

Increased passenger volumes and lower fuel prices

In the quarterly report for January-March, we saw an Easter effect, where travel was affected by Easter being early. Although Easter, the year's first major travel weekend, fell during the previous quarter, we have positive development in the number of travelers during April-June. The Almedal Week fell for the second year in June, which contributes to increased passenger volumes during the first month of summer.

The adjusted operating profit for the quarter amounted to SEK 27.3 million (8.3), which is a clear improvement. The period January-June shows, as expected, a negative adjusted operating profit of SEK -39.4 million, which is an improvement compared to 2023's SEK -54.6 million.

The improved operating result is above all due to stronger results in the Gotland traffic. The result, however, continues to be negatively affected by establishment costs from our share in Gotland Alandia Cruises.

Gotland Alandia Cruises premiered the cruise ship BIRKA GOTLAND in March. After a somewhat slow start in terms of occupancy rate, we see a positive start to the summer. The cruises to Visby are well booked and create opportunities for more people to visit and discover Gotland. Preparations for autumn are now in full swing, with developed experiences on board.

With the Nordics as a market

In June, we announced that we are buying the DFDS line between Copenhagen and Oslo. It is gratifying that, after having largely focused on streamlining and sales in recent years, now take a clear step forward in Gotlandsbolaget's growth. The deal is part of our strategy to expand within passenger shipping and the hospitality industry. After BIRKA GOTLAND 's premiere, we operate Stockholm-Mariehamn daily, and the purchase of the new line means that we will serve two more Nordic capitals.

The acquisition of the line includes two cruise ferries and an operation with approximately 800 employees at sea and on land. The line offers cruises between Copenhagen and Oslo, and had approximately 700,000 passengers in 2023. It is a business that works well today, but we see great development potential and will develop the product and the offer further. Intensive work is currently underway in preparation for the takeover of the business in the autumn.

Even on land, we are looking ahead, and are working on expansion plans for our accommodation facilities on Gotland, as well as continuing to deepen our involvement in energy and technology.

Håkan Johansson, CEO of Gotlandsbolaget

Full report in Swedish https://corporate.gotlandsbolaget.se/sv/wp-content/uploads/sites/4/2021/10/Kvartalsrapport-Januari-Juni-2024-240821-1.pdf

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