Tallink Grupp AS, the Estonian cruise ferry group, has reported a sharply lower second quarter profit and a first half loss as reductions in charter income offset a slight rise in volumes and rise in on board sales.

Group net profit fell to €9.8 million in the second quarter from €28.5 million in the same period last year, while revenues decreased to €245.2 million from €253.9 million.

In the first half, the listed Tallinn based company bookeda net loss of €2.2 million compared to a profit of €15.2 million in the first six months of last year. Revenues decreased to €438.0 million from €444.0 million.

In the second quarter, the group’s vessels carried 2.4 million passengers which is 2.8% more compared to the second quarter last year. The number of cargo units transported increased by 7.3% and the number of passenger vehicles transported increased by 3.8% compared to same period as last year, the company said in a statement.

"Despite the increase in passenger number the average ticket price per passenger was lower and the total revenue from the ticket sale is on level with the second quarter last year,” Tallink noted.

Restaurant and shop sales increased by €3.6 million or 2.7% in the second quarter compared to the same period last year.

“The sales growth is supported mainly by the higher number of passengers travelling with the Group’s operated ships. Throughout the second quarter there was a price pressure from competition on all routes," the company said. 

“The second quarter total revenue and operating result were lower compared to the same period last year mainly due to less revenue from chartering related to the sale of vessels Regina Baltica and Silja Festival and termination of cruise ferry Silja Europa charter,” the company said