Development in the first half of 2020
The Covid-19 pandemic and performance losses result in negative revenue development.
As a result, operating profit figures are worsening.
DB Regional | H1 | Change | |||
2020 | 2019 | absolute | % | ||
| Punctuality (rail) (%) | 96.0 | 94.7 | – | – |
Punctuality (bus) (%) 1) | 82.8 | 82.1 | – | – | |
| Passengers (million) | 807.3 | 1,259 | – 451.7 | – 35.9 | |
thereof rail | 621.5 | 977.7 | – 356.2 | – 36.4 | |
| Volume sold (million pkm) | 14,097 | 23,661 | – 9,564 | – 40.4 | |
thereof rail | 12,115 | 20,382 | – 8,267 | – 40.6 | |
| Volume produced (rail) (million train-path km) | 204.6 | 226.9 | – 22.3 | – 9.8 | |
| Volume produced (bus) (million bus km) | 221.6 | 249.2 | – 27.6 | – 11.1 | |
| Total revenues (€ million) | 3,727 | 4,412 | – 685 | – 15.5 | |
| External revenues (€ million) | 3,676 | 4,361 | – 685 | – 15.7 | |
| Rail concession fees (€ million) | 2,573 | 2,803 | – 230 | – 8.2 | |
EBITDA adjusted (€ million) | – 276 | 512 | – 788 | – | |
EBIT adjusted (€ million) | – 597 | 186 | – 783 | – | |
| Gross capital expenditures (€ million) | 189 | 273 | – 84 | – 30.8 | |
| Employees as of Jun 30 (FTE) | 36,980 | 36,362 | + 618 | + 1.7 |
1) Change in method from 2020 onwards, with retroactive adjustments.
Punctuality within regional rail passenger transport has improved. The main reasons for this were the reduced network utilization and lower passenger numbers. Punctuality also improved for bus transport.
Performance development declined noticeably.
- In rail transport, the development of key performance indicators was characterized by negative Covid-19 effects and performance losses from discontinued services.
- Bus transport also experienced a continuous decline in performance as a result of performance losses and Covid-19-related interruptions.
The economic development of DB Regional has been particularly affected by the development of the higher revenue and higher performance in the rail line of business (share of revenues: 88%). The development in the first half of 2020 was very challenging. Reduced passenger numbers did not fully affect revenue development, as the revenue risk for gross contracts lies with the public transport authorities. A regulation for net contracts is still pending; a “rescue package” for the local transport industry is still in the process of being agreed. Operating profit figures declined significantly:
- Revenue dropped considerably as positive effects from higher concession fees were completely offset by the consequences of Covid-19 and by decreases relating to performance losses across rail and bus transport.
- Other operating income was at the level of the first half of 2019.
- Cost of materials (–5.8%/€ –160 million) decreased, in particular, due to reduced performance-related expenses relating to the use of infrastructure and energy, as a result of the Covid-19 pandemic.
- Personnel expenses (+3.8%/€ +40 million) increased as a result of collective bargaining and the higher number of employees.
- Other operating expenses (+69.0%/€ +203 million) increased significantly, mainly as a result of a revaluation of impending losses due to the effects of Covid-19.
- Depreciation (–1.5%/€ –5 million) reduced slightly, mainly as a result of adjustments to the useful life of vehicles on the Munich and Hamburg S-Bahn (metro) networks.
Capital expenditures declined due to the discontinuation of tender-related vehicle projects in the rail line of business, along with the postponement of projects in the bus line of business.
76% of employees are employed in the rail line of business and 24% in the bus line of business. The number of employees rose slightly in both.
Rail line of business
Profit development, in particular as a result of the Covid-19 pandemic and performance losses decreasing.
Personnel expenses increased due to collective bargaining and personnel expansion.
Delayed vehicle deliveries require further replacement concepts.
| Rail line of business | H1 | Change | |||
2020 | 2019 | absolute | % | ||
| Passengers (million) | 633.2 | 998.3 | – 365.1 | – 36.6 |
thereof rail | 621.5 | 977.7 | – 356.2 | – 36.4 | |
| Volume sold (million pkm) | 12,296 | 20,691 | – 8,395 | – 40.6 | |
thereof rail | 12,115 | 20,382 | – 8,267 | – 40.6 | |
| Volume produced (million train-path km) | 204.6 | 226.9 | – 22.3 | – 9.8 | |
| Total revenues (€ million) | 3,266 | 3,853 | – 587 | – 15.2 | |
| External revenues (€ million) | 3,219 | 3,805 | – 586 | – 15.4 | |
| Rail concession fees (€ million) | 2,574 | 2,803 | – 229 | – 8.2 | |
EBITDA adjusted (€ million) | – 82 | 490 | – 572 | – | |
EBIT adjusted (€ million) | – 370 | 196 | – 566 | – | |
| Gross capital expenditures (€ million) | 174 | 249 | – 75 | – 30.1 | |
| Employees as of Jun 30 (FTE) | 28,212 | 27,721 | + 491 | + 1.8 |
Performance development in the rail line of business was heavily influenced by Covid-19 and by tender losses for the Rhine/Ruhr S-Bahn (metro) and Stuttgart networks; as a result, passenger numbers reduced significantly.
On the economic side, the Covid-19 pandemic, performance losses and increased personnel expenses led to a significant decline in operating profit figures.
- The negative revenue development was driven by the impact of Covid-19 and contract losses.
- Other operating income increased slightly in contrast as a result of loss compensation and cost reimbursements.
On the expenses side, there was some relief, although this was disproportionately low in relation to revenue development:
- Cost of materials decreased as a result of reduced epenses relating to the use of routes and stations, as well as performance-related reductions in energy expenses. Increased expenses for maintenance and hygiene services had an attenuating effect.
- Personnel expenses increased as a result of the collective bargaining and the higher number of employees.
- Other operating expenses increased mainly as a result of a revaluation of impending losses due to the effects of Covid-19.
- Depreciation fell as a result of vehicles reaching the end of the useful life.
Capital expenditure activities declined due to the discontinuation of tender-related vehicle projects.
The number of employees rose slightly, partly as a result of capacity building and functional training.
Bus line of business
Intensification of the competitive environment led to performance losses.
The Covid-19 pandemic burdens economic development.
Personnel expenses increased in relation to collective bargaining and by personnel expansion.
| Bus line of business | H1 | Change | |||
2020 | 2019 | absolute | % | ||
| Passengers (million) | 174.1 | 260.5 | – 86.4 | – 33.2 |
| Volume sold (million pkm) | 1,801 | 2,970 | – 1,169 | – 39.4 | |
| Volume produced (million bus km) | 208.3 | 236.0 | – 27.7 | – 11.7 | |
| Total revenues (€ million) | 489 | 580 | – 91 | – 15.7 | |
| External revenues (€ million) | 458 | 556 | – 98 | – 17.6 | |
EBITDA adjusted (€ million) | – 194 | 23 | – 217 | – | |
EBIT adjusted (€ million) | – 227 | – 9 | – 218 | – | |
| Gross capital expenditures (€ million) | 15 | 25 | – 10 | – 40.0 | |
| Employees as of Jun 30 (FTE) | 8,768 | 8,641 | + 127 | + 1.5 |
Performance development in the bus line of business significantly declined as a result of tendering losses and the effects of Covid-19.
Economic development continued to be challenging. Among other consequences, the decrease in revenues led to a significant reduction in operating profit figures.
- Revenue development was influenced in particular by negative Covid-19 effects and performance losses.
- Other operating income declined due to a number of factors, including a change to the billing process in cases of loss.
On the expenses side, there was some relief, however, and there was also a clear need for adaptation due to worsening prospects resulting from Covid-19:
- Cost of materials was reduced as a result of decreased performance and volume and price effects on the fuel market. Increased expenses for hygiene and protective measures had a detrimental effect.
- Personnel expenses increased due to the higher number of employees and due to collective bargaining.
- Other operating expenses rose significantly, mainly as a result of allocations for impending losses due to the effects of Covid-19.
- The increase in depreciation resulted from capital expenditures in the previous year.
Capital expenditure activities declined mainly as a result of postponements to vehicle projects.
The number of employees rose slightly as of June 30, 2020.