Good morning. My name is Valdo Kalm, and our CFO, Andrus Ait .
Good morning.
We both are ready to comment on the results from Q1. As usual, we will start from the main events from first Q. Here we are with that. The most important thing is that we had quite a nice increase of vessel calls in Q1. It mainly came from the cargo side, but also we had growth on passenger vessels. Good news is that we got new contracts and new regular container lines to Muuga, Paga, Ocean Network Express, one. Started to operate in February. We had a long-term charter agreement with Baffinland for the Botnica, but this year Baffinland does not need the Botnica. Although we have a couple of jobs in pipeline, and if there will be concrete decisions for summer and autumn period, we will report that immediately.
Also, as you know, we are heavily supporting Rail Baltica and Rail Baltica Station to Muuga harbor. There are already many concrete steps ongoing. In January, we signed an agreement with Rail Baltica and the government body for sales of eight properties in Muuga, especially these properties needed for the railway station and for railways in the Muuga area. The effect financially will be in our P&Ls this quarter. The good news is that we got insurance income and money from the icebreaker Botnica incident that happened last year in Q3. It's almost EUR 1 million. That's included in Q1 balance sheet. Trends in segments. In Q1, we had slight decrease of passengers. There is heavy competition between the operators, and we believe that this year we will still see the continuous improvement of passengers.
The good news is that as we had 4% vessel calls, then also we have seen growth in revenues in this segment. Cargo had stable volumes, but due to the nice increase of vessel calls, we also had revenue increase. The biggest growth came from liquid bulk this quarter. And containers had stable volumes, slight increase in Ro-Ro. Our local ferry business shows stable development, and same for the Botnica winter job here in Estonia. Here are the volumes from passenger business. Again, the most important thing is that there is very stable or even increase in vessel calls. Of course, more than 50% of our revenues are coming from port use. And on cargo, as I mentioned, stable, almost stable in Q1. Again, important is the increase of vessel calls in Q1. Shipping shows in ferry segment also stable numbers and revenues.
In Botnica, also stable charter days. Last year, it was a bit smaller, but due to the good charter fees we had last year, also increase in revenues. It depends very much on the charter fees, this business. Future outlook. As I mentioned, we believe passenger business is recovering. Basically, there are two reasons. One, we believe that heavy competition helps between the three operators, I mean, Tallink, Viking, Eckerö, and Caroline. There are quite many different packages on the market available for different segments. We had also an increase in cruise ships for this year, about 10%. We believe that that will happen, and we will see a bigger number of cruise passengers also. Very important to continue with Ro-Ro and container lines, as we had in Q1. Last year, we also had X-Press Feeders, new regular container line to Muuga.
We are negotiating with container lines and Ro-Ro lines continuously. We believe to have some new contracts during this year also, because we are getting additional revenues and profits immediately without any additional cost or investment from our side. We started last year with a new campaign on industrial parks. The aim is to especially have new industrial producers due to Muuga and Paldiski harbors to our industrial parks. Our multifunctional quay development in Paldiski goes as planned. We believe that if it will be ready as planned Q1 next year, we will have revenues immediately on the quay, because it is multifunctional. We have still under negotiation many possibilities on Baltic Sea wind farms. Of course, we need extra resources for Ro-Ro also. We continuously study the business plan and the need for multifunctional offshore vessels.
There are some new tasks for this kind of offshore business. For example, as you noticed, there are a lot of things happening around the cables. There are two types of cables in offshore business: electricity and telco cables. Therefore, we really try to understand what is the functionality for such offshore vessels to build or buy this one. Maybe we will have a certain final decision by the end of this year, because it's a big investment. We really have to understand whether the market and changes in the market conditions. We now are in quite a final phase of preparation of the real estate business model. If everything goes well with detailed plans, we would like to have two areas' detailed plans fixed this year. We definitely will introduce the plots to the investors and to the market.
Efficiency, efficiency, efficiency is still on the table. We will continue. Last year, we managed quite well to lower and keep the cost level. That's valid for this year also. Now, I would like to give the floor to Andrus.
Thank you, Valdo. Here are visible the financial results of the group for the first quarter of this year. Cargo volumes and the number of passengers decreased slightly in the first quarter. However, the revenue, adjusted EBITDA and profit for the period, increased. The increase in revenue was 1.5%, and the revenue amounted to EUR 28.4 million. The increase is attributable mainly to a higher number of vessel calls, both in cargo harbors and in passenger harbors. Also, the cargo charges increased. To explain the higher number of vessel calls in cargo harbors, there were bigger ships, and also the cargo volumes were quite stable, and we had some new Ro-Ro lines. This is the main—sorry, container lines. These are the main reasons. In passenger harbors, last year, Finland was out of the line for one month.
This was the reason for the passenger harbors. Cargo charges increased despite the drop in cargo volumes. Last year, we adjusted or corrected the cargo charges downward because we expected lower cargo volumes for the entire year. This year, we did not make such kind of correction. This correction was made according to the quoting rules IFRS 15. This is the main reason why this year the cargo charges are higher than last year. Also, there was an increase in lease income, and also the revenue from the right of superficials also increased. Adjusted EBITDA increased by 9.4% and amounted to EUR 13.9 million. The increase was EUR 1.2 million. It is mainly attributable to the lower operating expenses. The maintenance repair costs decreased the most, and there is the impact from the insurance indemnity from the Botnica incident.
The incident itself happened last summer during the summer charter work. After that, we carried out the maintenance and repair works, and the situation was handled by us, insurance case. This year, in the first quarter, we received indemnity payment of EUR 900,000. In addition to that, the planned regular maintenance and repair works were also lower. This also decreased expenses, and we had also lower fuel costs in the first quarter compared to last year's same period. Personnel expenses increased. We decreased the number of employees according to the efficiency measure. Due to that, we had severance payments. This was one of the impacts. Also, there was an increase in bonus reserves, and the average salary across the group has also increased a bit. Adjusted EBITDA margin was 49.1%, mainly because of lower costs and because of the insurance indemnity.
Also, the other costs decreased and the revenue increased. In the first quarter, we did not pay any dividends, income taxes related to the dividends. We usually do this in the second quarter. This year, it will be similar. We pay our dividends this Friday, on the 16th of May. The income tax will be recorded in the second quarter. Profit for the period increased by EUR 1.6 million, so more than 30%, and amounted to EUR 6.8 million. Here we can also bring out the impact from the finance costs. As the euro dollar level has decreased, the finance costs decreased also by EUR 500,000 million. In the first quarter, we invested EUR 3.6 million. Last year, the investment volume was almost EUR 18 million. The main project is continuously the quay construction in Paldiski.
This year, we had also dry docking works for two of our ferries, and we made also some IT investments. Last year, to explain the decrease here, last year, the first quarter was the investment volumes were very high because there were some filling works in connection with the quay construction. We also brought some materials in advance or upfront. Therefore, the investments were higher. This year, the main investment volume will be in the second quarter in connection with the Paldiski construction. I would like to emphasize that the construction works go by the plan, and there is no delay. When we look at the results by segment price, we see that the revenue increased in passenger, cargo, and ferry segment. There was a slight decline in segment other in passenger harbors, more vessel calls.
Therefore, the increase—and due to the Easter holidays, which last year were in the first quarter, this year they were in the second quarter, we had fewer passengers. The passenger fees decreased, but the increase in vessel queues was higher. Also, the sale of electricity increased a bit, and also rental income increased. EBITDA was stable in the first quarter in passenger harbors. In cargo harbors, revenue increased also because of the high vessel queues. Cargo charges increased, and also rental income increased. Adjusted EBITDA in cargo harbors decreased because the one reflected from the due to the fact that we decreased the number of employees impacted this segment the most. Also, we made less repairment—sorry, more repairment and maintenance work this year than last year in the first quarter. This also impacted the adjusted EBITDA.
In ferry segment, in revenue, there was a minor increase because of indexation, and costs decreased significantly because of lower fuel costs. Last year, in the first quarter, we had quite tough ice conditions. Therefore, the consumption of the fuel was higher. Also, the fuel price this year is a bit lower than last year. All in all, it resulted in lower costs in ferry segment. In the segment other, revenue decreased a bit because of the leap year last year. We had one charter day less than last year. Adjusted EBITDA increased significantly because of the insurance indemnity. Also, the regular and/or planned maintenance works this year for Botnica were lower than last year. On cash flow side, we see that cash from operating activities increased by EUR 4.2 million, amounted to EUR 20.3 million.
This reflects the high revenue and lower costs. The receipts from sales increased and payments to the suppliers decreased. Cash used in investing activities, here we see a decrease. This is in line with the lower investments. This year, we also received grant money from the EU project Twin Port four. This project was completed already last year. In this project, we built a two-story ramp, for example, in Muuga, and also renovated one ramp in Old City Harbor. This project was successfully concluded last year, and this year, we received the final payment in the amount of EUR 2.5 million. This impacted this row positively. The free cash flow was plus EUR 19.8 million, and the increase on this line was EUR 22.1 million. Cash used in financing activities also decreased because of lower finance costs.
Last year, in the first quarter, we had also higher loan repayment in connection with the loan agreement, which ended over the last year. This year, it was a final installment. This year, we did not have this repayment, and therefore, positive impact from that as well. Net cash flow for the period in the first quarter was EUR 17.7 million, which is plus EUR 25.3 million compared to Q1 last year. Net debt at the end of period is quite similar to last year. Net debt at the end of the period was EUR 149 million. Cash on bank accounts has increased, but at the same time, also the gross outstanding debt has increased. The increase here was only EUR 1.4 million. On financial position, we see that due to the positive cash flow, cash on bank accounts has increased.
Non-current assets decreased a bit compared to the year-end period because the investments were lower than amortization for the period. Equity was impacted by profit for the period, and debt is quite similar at the end of the last year. This is all from our side. Like always, there are a few slides about revenue generation and EBITDA generation, and you can study them later if you have any deeper interest. Now we will make a short break. Please submit questions, chat, teams, and we will be back in a couple of minutes. We are back. We have received three questions. I'll start with the first one. Would it be possible to quantify the impact of roughing and not using the option for Botnica Nord on 2025? The impact on revenue level is for about EUR 3 million.
We still are hopeful that we can replace Gevorg with some other charter. The negotiations are ongoing, and we're positive on that. Second question. What are the planned investments for 2025? And has there been any changes to the long-term investment plan? No, currently, we don't have any changes in long-term investment plans. The total investment will be this year, EUR 30 million-EUR 35 million. EUR 20 million-EUR 23 million of that is related to the quay construction in Paldiski. The other are mainly the maintenance investments to improve the quays and port facilities.
You're right. The next question, please give an update on the planned sale down by the Estonian State. When can we expect it to happen? The status is quite similar.
It's still valid that we prepared together with ministers' project plan, how to say, and it's really up to the government now when they will prioritize it and take to the government meeting for decision. We are basically ready to discuss it. As we said earlier, that will happen not earlier than end next year or even beginning 2027. Thank you.