Good afternoon. Welcome to our webinarium. My name is Valdo Kalm, I'm in charge of Port of Tallinn, and Andrus Ait is our CFO. As usually, we will start with main events in Q1. We will start with record vessel calls on Tallinn-Helsinki line. That's really record.
Also we got quite a nice development on growth for passengers. Icebreaker, Botnica, signed a contract with Baffinland, that's a company in Canada for summer work. Here we can also add that just recently we announced that there is another contract for the rest two months with Equinor. It's one of the biggest energy companies in Scandinavia. Botnica got a job to serve wind farms on the coast of U.K.
Therefore, excellent coverage for this summer with very good dues. We got positive court ruling to the end of the legal dispute with Silja and Väinamere Liinid Lines. We signed additional MOU with Utilitas Wind for the development of offshore wind farms and to use our Paldiski port. We announced of the passenger terminal architectural competition, and that's now ongoing. That was international competition, of course, or tender.
We got almost 30 offers, and now we're working on that. If there will be decision, we will announce who won, and then it goes for the design phase. Public discussions of sketch designs for the detailed plans of Old City Harbor happened in January. That was quite successful because we got very little and not very serious feedback.
We definitely go on and move as fast as possible with our detailed plan together with city government. Trends in Q1 by the segments. On passenger side, we have seen continuous strong growth in passenger numbers, and it's valid not only for the Helsinki, but also we had some 90% growth on Stockholm line. As we already mentioned, increase in vessel calls and definitely in revenues and EBITDA. That means Q1 was a continuing recovery from pandemic.
In cargo, decline in volumes 31%, of course, in revenues also, but less. That's due to the EU sanctions. I would like to remember that last year, Q1, we basically had all Russian and Belarus transit bulk in place. The basis was very high.
Although we had good news also on cargo side that in Q1, ro-ro continued the growth. That shows at least such a normal development on Estonian export-import. Of course, part of that is transit also. Ro-ro is nowadays most profitable cargo type, therefore that's a good message. In ferry business, revenue growth was 13% from additional trips and indexation.
Under the other segment, Botnica made a also very stable quarter, and revenue increased due to the higher charter fee coming from the contract with Estonian Transport Administration. Here we see the passenger volumes. Just to remind that we finished last year on level 7 million, and definitely our aim is to catch again record year 2019, pre-COVID time, 10+ million. So far, the recovery is there.
On cargo side, quite a sharp decline due to the war. As I mentioned, it comes from liquid bulk and dry bulk. Shipping or ferry volumes, very stable. Recovery from COVID was also quite quick. As I mentioned, state ordered additional trips due to the growth in passengers and vehicles. Therefore, our ferry business shows very stable and even growth development.
Same for Botnica, stable Q1. Also there are numbers from last year, and last year's utilization rate is very stable. Hopefully this year will be the similar or even a little bit higher. Future outlook. We believe that passenger business shows recovery in Q2, Q3. We working on that. We have had and we have very good cooperation with our operators, therefore we do what we can.
Therefore we are quite positive because we have seen different new segments traveling more from Helsinki. Hopefully, yeah, the recovery continues. Still we have impact from sanctions. If you remember then we announced the impact for full year, but was basically lower than we prognosed. Part of this impact is valid for the last year, but some EUR 3 million is impacting this year. It's really difficult to say when the war will end. Yeah, that's the reality and we're working with another cargo types and another channels to find the growth. Very important in this case is to develop ro-ro and containers.
That's our strategic goal to have a growth in ro-ro to serve better Scandinavia, I mean, Finland and Finnish export. Just recently we launched a new ramp. It's double ramp in Muuga, and that immediately shows up in revenues also because Eckerö Line added one additional trip per day to that. The results from Muuga showing very such a nice development.
To the let's put it to the future growth area. That's offshore business and specifically in offshore wind farms, where we would like to take the part. In coming weeks, we will announce who is the winner of tender to construct the key and fulfill the landing in Paldiski Harbor.
If you remember, our decision was to invest EUR 53 million. If we sign the contract, we start immediately to construct the key. That's one part of that. Also we working with new contracts in shipping. Botnica's new contract with Equinor shows precisely the need of offshore ships in this area, and Botnica is moving to U.K. coast to serve offshore wind farms. That's exactly the experience we need. Therefore we see that offshore business is increasing. We even analyzing, there are no decisions, but we're analyzing maybe we charter or we will build another offshore ship. Offshore wind farms, the installment or construction and then the maintenance and serving these wind farms are definitely future growth area.
We're preparing to that very seriously to offer more such a value-based or value chain offer to developers. Also this year, we making the preparation for the real estate business. If everything goes okay, hopefully next year we will see the confirming of detailed plannings. We immediately announce the tenders for developers to really start with real estate business. Yeah. Please.
Thank you, Valdo. Good afternoon from my side as well. I will go on with the financial results of the groups in Q1 2023. Revenue increased by 6.1% and amounted to EUR 28.4 million. The growth was mainly supported by higher number of passengers, also record number of vessel calls in our passenger harbors and also shipping segments supported the growth quite strongly. Adjusted EBIT increased by 0.6%, up to level EUR 13.6 million. The growth here is significantly lower than in revenue.
Here we must bring out the negative impact from costs, especially from labor expenditures due to the cost pressure and salary increases made over last year. Also we had a change in motivation system took effect from this year.
Also operating costs increased, the three items, cost items, which impacted the growth most, were mooring costs, also maintenance costs for infrastructure, and also costs of receiving waste from the ships which visiting our ports. Due to the higher cost, adjusted EBIT margin lowered from 50% to 48%. Operating profit decreased by 6% and amounted to EUR 6.8 million.
Here we must bring out the effect, one-off effect from write off the assets in amount of EUR 800,000. This is related to the amendment in public sector accounting rules, which are applicable also for Port of Tallinn in Estonia. According to this amendment, the threshold for recognizing the assets as non-current was increased from EUR 5,000- EUR 10,000. Due to that, we had to write off the assets in amount of EUR 0.8 million. Income tax, we didn't pay any income tax in the first quarter, as we will pay out dividends in the second quarter. Payout day will be day after tomorrow, the 5th of May.
Profit for the period decreased by EUR 1.5 million or by 21%. Profit for the period was EUR 5.7 million. Here we have also impact from higher interest rates as we paid more interests in amount of EUR 0.9 million. We invested EUR 1.5 million in the first three months this year, which is relatively low level.
The main projects were made in Old City Harbor, where we completed the surrounding area of Terminal D. In Muuga, we completed and opened the new two-story ramp to serve the ro-ro traffic there.
Both of those investments are good base to increase the revenue in ro-ro, from ro-ro and from passenger harbor segment. Here it's important to also mention that we expect that in the second half of the year, the investment level will increase significantly as we will start the investment project or the new key construction in Paljassaare Harbour.
As we look at the revenue and profitability over the years, we see that in 2020 there was drop both in revenue and on EBIT level because of the start of pandemic. Since then, we have been able to increase the revenue over the years.
The adjusted EBIT has been quite stable, despite the company has been impacted by pandemic and after that by sanctions on Russian and Belarusian cargo. The EBIT level has been quite stable flat throughout the years.
This goes also for the first quarter 2023 as the revenue increased and the EBIT was quite same level as year before in the first quarter. When we look at the results by segment wise, we see that the growth on EBIT and revenue we have managed to achieve in three segments out of four. The most successful results came from passenger harbors as the revenue there increased by EUR 2 million.
It was mainly supported by higher number of vessel calls and therefore we had 1 million extra revenue or additional revenue from vessel fuels. We had a higher number of passengers, and passenger fees increased by EUR 700,000, easily increased by EUR 700,000 and also the rental fee. Also the adjusted EBIT increased quite significantly.
Ferry segment also supported the growth in revenue by EUR 1 million. This is due to the indexation. Also EBIT increased. On EBIT level, we have managed to keep the costs quite stable in this segment. The consumption of fuel has been also decreasing per trip. Therefore here the EBIT has increased.
In the segment other, revenue increased by EUR 300,000 due to the new contract with the Estonian Transport Administration for next 10 years for the icebreaking service in Estonia, on the Estonian Coast. From that contract, we have higher contractual fee. In the segment other, the EBIT remain quite the same level as year before.
The EBIT increased from the activities of Point Nina, but at the same time decreased the EBIT from our joint venture company, Green Marine, where the project-based revenues were lower, and therefore also EBIT from that decreased. Cargo harbors, due to the lower cargo volumes, because of the sanctions, revenue decreased by 18% to EUR 1.8 million.
EBIT decreased. In revenue, vessel fuels decreased by EUR 1 million, cargo charges about EUR 200,000. Sale of electricity was lower, EUR 400,000, due to the lower price and due to lower consumption, which is related with a lower amount of cargo. Here is also, I want to bring out that three largest segments, passenger harbors, cargo harbors, and ferry segments, are quite equal in size, both on revenue and on EBIT. All those segments are contributing to our results equally.
On cash flow side, we see that cash from operating activities decreased year-on-year by EUR 1.5 million as the payments to the suppliers and payments to employees increased more than receipts from sale of goods and services.
Cash used in investing activities reflects the low investment level. Free cash flow was EUR 11.8 million, which is EUR 2.3 million more than year earlier at the same period. Cash used in financing activities increased by EUR 900,000, which is related to higher financing costs due to the higher Euro level.
Net cash flow was positive, EUR 7.8 million, which is EUR 3.4 million more than in first quarter of 2022. Net debt at the end of period decreased by EUR 27 million due to the loan repayments. Also we had EUR 10 million more cash on bank accounts, which also decreased the net debt level. On financial position, here we don't see any significant change when we compare the results the year-end period last year. Cash has increased and we have paid back loans in amount EUR 3 million. The financial position is quite stable and good and enables us to keep our dividend promise and pay out dividends.
With that, we'll conclude our presentation and we'll be back in a few minutes to answer your questions. Thank you.
First question that we got advanced. What will be the business model for development of old city port area? We have decided together with our supervisory board that the main model for real estate development is the building title or building right model that we will announce tenders to developers, and then we will sign the long-term rental or building title contract. Also there are two other models available. If there is some very interesting project for the port or for the area, then of course we can invest also partly or fully, and will come as a developer. The main model is building title. About timeline and about the first cash flow.
As I already mentioned, if everything goes well, then this year we call it preparation. If that goes well, then next year, hopefully we will have at least some areas fixed or agreed with detailed plans. Actually we will immediately start the tender. Therefore, first revenue is probably next year. Second question: What is the business model of the Po n relation of development of offshore wind farms? Here we invest for key for infrastructure, and we're using our basic model th rt of Paldiski i at we will collect port dues from the ships, and we would like to have rental agreements with developers. As we already mentioned, we signed four MoUs with developers, and that's the de-main model to collect the rental and port dues.
Also, we see that there is possible to a bit widen the value chain. As I mentioned, we have 3 plots in our Paldiski port. Then in other side, we're analyzing just now, maybe there is a business case to charter or even build the offshore ship. About the first cash flows and timeline, again, key must be ready on spring, summer 2025. That means, again, then we would like to immediately have a contract fixed on these keys, and hopefully the cash flows will show up 2025.
Mm-hmm. Next question. What will be the structure of financing Paldiski new key? The European Commission co-financing is EUR 20 million, but how is the rest of the investment divided between equity and the loan capital?
Yes, correct. We will finance the investment, which is EUR 53 million. EUR 20 million of that we will finance by support money from EU. About EUR 25 million we plan to finance with additional loan. The rest of the investment will be equity. We will sign the contract probably in the second half of May in the coming weeks. Then we are able to do more precise estimations about cash flow in connection with this project. Then we can plan what the financing exact number of the loan will be.
Here is also one question regarding cargo volumes. About the decreased cargo volumes to the revenue and EBITDA decrease in this segment was in line with your projections in the beginning of the year or different?
We can say that the decrease in revenue and EBITDA in cargo segment is quite in line with our forecast in the beginning of the year. Regarding costs, actually, we didn't expect or didn't expect that the electricity price will lower so quickly. From that, we have actually more positive results due to that. Generally we can say that cargo segment goes quite in line with our plans in the beginning of the year.
final question. Please confirm that excluding one-time write-off, the net profit decreased by EUR 0.7 million.
Yes, correct. The impact of the write-off the assets was EUR 700,000 to the profit.
It seems that there is no more questions. Thank you for participating, and see you next time.
Thank you. See you next quarter.