Development in the first half of 2020
Performance development clearly negative.
Decline in revenues mainly due to the Covid-19 pandemic, partially mitigated by government support.
Cessation of the ARN franchise on March 1, 2020.
DB Arriva | H1 | Change | |||
2020 | 2019 | absolute | % | ||
| Punctuality (rail) (Great Britain, Denmark, Sweden, the Netherlands and Poland) (%) | 91.5 | 92.3 | – | – |
| Passengers bus and rail (million) | 599.4 | 1,124 | –524.6 | –46.7 | |
| Volume sold (rail) (million pkm) | 2,871 | 5,973 | –3,102 | –51.9 | |
| Volume produced (bus) (million bus km) | 439.3 | 542.0 | – 102.7 | – 18.9 | |
Volume produced (rail) (million train-path km) | 57.4 | 81.4 | – 24.0 | – 29.5 | |
| Total revenues (€ million) | 2,059 | 2,690 | – 631 | – 23.5 | |
| External revenues (€ million) | 2,058 | 2,687 | – 629 | – 23.4 | |
EBITDA adjusted (€ million) | 93 | 326 | – 233 | – 71.5 | |
EBIT adjusted (€ million) | – 153 | 101 | – 254 | – | |
| Gross capital expenditures (€ million) | 203 | 323 | – 120 | – 37.2 | |
| Employees as of Jun 30 (FTE) | 46,477 | 52,590 | – 6,113 | – 11.6 |
The development in the first half of 2020 was influenced by two special factors:
- the impact of the Covid-19 pandemic, and
- cessation of the ARN franchise on March 1, 2020.
Accordingly, the performance development was negative: the number of passengers (bus and rail) decreased, driven by the Covid-19 effects and the cessation of the ARN franchise. Volume produced fell strongly in bus and rail transport.
The economic development was below the first half of 2019 primarily due to the Covid-19 effects and the cessation of the ARN franchise.
The revenues were generated 20% by UK Bus, 35% by UK Trains and 45% by Mainland Europe.
- Revenues declined primarily due to the decrease in volumes due to the Covid-19 pandemic and the cessation of the ARN franchise, as well as exchange rate effects. Government support (mainly in the UK) and new transport contracts had an opposite positive effect.
- Other operating income (+ 105%/€ + 124 million) increased due to the utilization of the contract loss provision for ARN and government support relating to the Covid-19 pandemic.
The development of expense items was driven by the cessation of the ARN franchise and the performance decrease due to the Covid-19 pandemic:
- The decrease in cost of materials (–17.0%/€ –147 million) was particularly impacted by the performance development and the reduced fuel consumption.
- The decrease in personnel expenses (–11.3%/€ – 138 million) is the result of the cessation of the ARN franchise and the Covid-19 effects.
- Other operating expenses (+3.8%/€ +15 million) increased, particularly due to the cessation of the ARN franchise and was partially offset by reduced franchise payments due to the government support measures.
- The increase in depreciation (+9.3%/€ +21 million) was mainly characterized by the cessation of the ARN franchise.
Capital expenditures also decreased mainly as a result of the cessation of the ARN franchise.
33% of the employees were employed at UK Bus, 11% at UK Trains and 55% at Mainland Europe as of June 30, 2020. The number of employees fell, largely as a result of the cessation of the ARN franchise.
UK Bus line of business
Negative effects mainly from the impact of the Covid-19 pandemic, partially mitigated by government support measures.
| UK Bus line of business | H1 | Change | |||
2020 | 2019 | absolute | % | ||
| Passengers (million) | 189.3 | 353.7 | –164.4 | –46.5 |
| Volume produced (million bus km) | 139.3 | 172.8 | – 33.5 | – 19.4 | |
| Total revenues (€ million) | 421 | 543 | – 122 | – 22.5 | |
| External revenues (€ million) | 420 | 542 | – 122 | – 22.5 | |
EBITDA adjusted (€ million) | 25 | 59 | – 34 | – 57.6 | |
EBIT adjusted (€ million) | – 24 | 15 | – 39 | – | |
| Gross capital expenditures (€ million) | 21 | 28 | – 7 | – 25.0 | |
| Employees as of Jun 30 (FTE) | 15,419 | 15,475 | – 56 | – 0.4 |
The performance development declined strongly due to the Covid-19 restrictions.
The economic development was correspondingly tense and led to a significant deterioration in operating profit
figures.
- The revenue development was negative mainly due to passenger reductions relating to the Covid-19 pandemic.
- Other operating income increased primarily due to the Covid-19 support measures such as bus service support grants and job retention (furlough support).
On the expense side, the declining performance trend resulted in noticeable relief.
- The decrease in cost of materials was particularly impacted by the weak performance development and lower diesel prices.
- Personnel expenses decreased slightly as a result of performance development.
- Other operating expenses remained roughly unchanged.
- Depreciation increased due to capital expenditure activities.
The number of employees declined partially due to the cessation of transport contracts in non-emergency patient transport and was offset partly by changes in the operating base.
UK Trains line of business
Negative effects mainly from the impact of the Covid-19 pandemic, partially mitigated by government support measures.
Cessation of the ARN franchise on March 1, 2020.
| UK Trains line of business | H1 | Change | |||
2020 | 2019 | absolute | % | ||
| Passengers (million) | 74.8 | 180.5 | –105.7 | –58.6 |
| Volume sold (million pkm) | 2,085 | 4,846 | –2,761 | –57.0 | |
Volume produced (million train-path km) | 31.8 | 55.0 | – 23.2 | – 42.2 | |
| Total revenues (€ million) | 728 | 1,071 | – 343 | – 32.0 | |
| External revenues (€ million) | 711 | 1,048 | – 337 | – 32.2 | |
EBITDA adjusted (€ million) | 44 | 105 | – 61 | – 58.1 | |
EBIT adjusted (€ million) | 1 | 38 | – 37 | – 97.4 | |
| Gross capital expenditures (€ million) | 39 | 179 | – 140 | – 78.2 | |
| Employees as of Jun 30 (FTE) | 4,958 | 10,965 | – 6,007 | – 54.8 |
The performance development was negatively impacted by the effects of the Covid-19 pandemic and the cessation of the ARN franchise on March 1, 2020.
The economic development was also characterized by the Covid-19 pandemic and the cessation of the ARN franchise. As a result, the operating profit figures declined.
- Revenues decreased due to the negative performance development, partially mitigated by government support measures.
- Other operating income increased significantly, primarily due to utilization of the contract loss provision for ARN.
On the expense side, the declining performance trend resulted in noticeable relief.
- The noticeable decline in cost of materials resulted primarily from the cessation of the ARN franchise and due to Covid-19-related service reductions.
- The decrease of personnel expenses resulted mainly from the cessation of the ARN franchise.
- Other operating expenses declined slightly, particularly due to the cessation of the ARN franchise which was largely offset by reduced franchise payments relating to the government support measures.
- Depreciation significantly decreased due to cessation of the ARN franchise.
The reduction of capital expenditures was also a result of the cessation of the ARN franchise.
The significant decrease in the number of employees was mainly driven by the cessation of the ARN franchise.
Mainland Europe line of business
Significant negative effects from the Covid-19 pandemic, partially mitigated by government support measures.
| Mainland Europe line of business | H1 | Change | |||
2020 | 2019 | absolute | % | ||
| Passengers (bus) (million) | 293.3 | 527.7 | –234.4 | –44.4 |
| Passengers (rail) (million) | 42.0 | 62.6 | –20.6 | –32.9 | |
| Volume sold (rail) (million pkm) | 785.7 | 1,127 | –341.3 | –30.3 | |
Volume produced (bus) (million bus km) | 299.9 | 369.2 | – 69.3 | – 18.8 | |
Volume produced (rail) (million train-path km) | 25.6 | 26.4 | – 0.8 | – 3.0 | |
| Total revenues (€ million) | 994 | 1,165 | – 171 | – 14.7 | |
| External revenues (€ million) | 925 | 1,097 | – 172 | – 15.7 | |
EBITDA adjusted (€ million) | 51 | 182 | – 131 | – 72.0 | |
EBIT adjusted (€ million) | – 65 | 70 | – 135 | – | |
| Gross capital expenditures (€ million) | 139 | 106 | + 33 | + 31.1 | |
| Employees as of Jun 30 (FTE) | 25,692 | 25,725 | – 33 | – 0.1 |
The performance development was negative:
- In rail transport all performance figures decreased mainly as a result of the Covid-19 pandemic. Positive effects resulted from new transport contracts in the Czech Republic.
- In bus transport, passenger numbers and the volume produced significantly decreased, mainly as a result of the Covid-19 pandemic.
The economic development was negative, primarily due to the Covid-19 impact.
- The revenue development was negative, mainly related to Covid-19 effects. In addition performance losses in Denmark burdened the development. Exchange rate effects had a negative effect as well.
- Other operating income remained roughly stable.
On the expense side, the declining performance trend resulted in noticeable relief:
- The significant decrease in cost of materials was mainly driven by lower energy costs due to service reductions relating to the Covid-19 pandemic. New transpoprt contracts in the Czech Republic had an adverse effect.
- Personnel expenses decreased slightly driven by the performance development. This was partially offset by salary increases.
- The other operating expenses increased slightly due to Covid-19 effects.
- Depreciation rose slightly due to capital expenditure activities.
The number of employees decreased, mainly due to the loss of transport contracts and Covid-19 effects, partially offset by new transport contracts in the Czech Republic.