TT-LINE Company Annual Report 2016

TT-LINE Company Annual Report

TT-Line Company Pty Ltd recorded an after tax profit of $18.8 million for the year ended 30 June 2016, the company’s annual report tabled in State Parliament today said.


Chairman Michael Grainger said it was the company’s second highest profit figure after tax, and the 10th year in succession that it had achieved an underlying profit ($18.6 million).


“Revenue increased to $220.9 million, thanks to increased sailings and higher passenger numbers due to on average lower fares,” he said.


“TT-Line’s underlying EBITDA (earnings before interest, tax, depreciation and amortisation) was $33.9 million, compared to $31.2 million last financial year.


“The valuation (65 million Euros) for each of the Spirit of Tasmania vessels increased by three million euros a vessel, which reflected the cost of the refurbishment, an improved ferry resale market and reduced short-term build capacity.” 


The number of sailings operated in 2015/16 increased by six per cent to 814 (2014/15: 767).  This included an additional 45 day sailings following the refurbishment of the vessels.


Passenger numbers increased in 2015/16 by nine per cent to 418,831 (2014/15: 384,501).  This was the highest number of passengers carried by the company since 2004 and was achieved despite a number of adverse weather-related events.


Mr Grainger said the increase in passenger numbers was thanks to a number of factors.


These included the efforts of a hard working crew and staff, refreshed media and marketing campaigns targeting more cost-effective communication channels, additional day sailings following the refurbishment of Spirit of Tasmania I and Spirit of Tasmania II and a 13 per cent decrease in passenger fares in real terms.


Freight volumes fell compared to last year, though it was still the second highest on record – 100,626 twenty-foot equivalent units (TEUs) compared to 102,309 TEUs. 


In August 2015, Mr Grainger said the refurbishment of the vessels was completed “on time and on budget”. 


“The refurbishment delivered significant change in all aspects of the passenger experience on board the vessels, particularly aimed at families and day sailing passengers,” he said.


Mr Grainger said TT-Line’s partnership with the North Melbourne Football Club (NMFC) was extended in June 2016 after the TT-Line Board signed off on an additional three games a year for five years (2017 to 2021).


“AFL games played at Blundstone Arena in Hobart were very popular and extremely well supported,” he said.


“The historic Friday night game between North Melbourne and Richmond was a sell-out and attracted strong prime time viewer numbers through Channel 7 and Foxtel in Victoria and nationally. 


“The value of the exposure in our key markets should not be underestimated.  Similarly, the flow-on benefits to Tasmanian businesses and the community has also been an important consideration for the Board in its decision to partner with the AFL and the NMFC.”