• Weakening of negative Covid-19 effects, new transport contracts and the introduction of the 9-Euro-Ticket have shaped developments in the first half of 2022.

• Higher costs, especially for energy and personnel, are weighing on development.

• Operating profit development improved significantly.

Since the second half of 2021, the bus transport activities of Regionalverkehr Alb-Bodensee GmbH (RAB) have been reported under the bus line of business. This results in immaterial limitations in the comparability of the figures from the first half of 2021 (RAB effect).

The trend of recovery in demand that began in the previous year continued as the measures used to contain the Covid-19 pandemic were progressively removed in the first half of 2022. In addition, the takeover of Abellio traffic (Ruhr-Sieg network and S-Bahn [metro] Rhein-Ruhr) and the introduction of the 9-Euro-Ticket had a positive effect. As a result, the number of passengers and volume sold rose very significantly. Volume produced increased slightly. The discontinuation of the Hanover S-Bahn (metro) services was partially compensated by additional services in North Rhine-Westphalia.

Operating profit figures also improved considerably. Adjusted for the RAB effect, the increase was slightly weaker. The recovery in performance supported the positive income development:

• Revenues increased as a result of performance-related higher revenues from fares and driven by higher concession fees. In addition to general increases by the public transport authorities, particularly in connection with energy price increases, new transport services also had an effect. Traffic losses and the 9-Euro-Ticket-related loss of revenues from fares (compensation will not take place until the second half of 2022) partially counteracted the positive development.
• Other operating income fell slightly, partly as a result of a lower utilization of provisions for impending losses, which were unusually high in the first half of 2021 due to the Covid-19 pandemic. This was partially offset by higher income from compensation for damages in connection with delayed vehicle deliveries, among other things.

On the expense side, there were additional negative effects, primarily from price effects and additional traffic:

• Cost of materials rose, mainly as a result of higher costs for energy and volume-related expenses for the use of train-paths and stations. Higher maintenance expenses also had a negative effect.
• Personnel expenses rose, largely as a result of collective bargaining agreements.

The decrease in other expenses had an offsetting dampening effect:

• The lower other operating expenses resulted mainly from lower additions to provisions for impending losses. The implementation of measures for digitalization, winning back customers and increasing quality had a partially offsetting effect on expenses.
• Depreciation was roughly at the level of the first half of 2021.

Capital expenditure activities developed in line with the requirements from transport contracts awarded and were down significantly.

The number of employees was at the level of the first half of 2021. Adjusted for the RAB effect, there was a slight increase as a result of new operations, particularly the takeover of Abellio traffic.

• Recovery after Covid-19-induced losses continues – loss of revenues from fares due to the 9-Euro-Ticket slows down revenue development.

• Additional expenses due to higher energy prices and transport of refugees from Ukraine.

•  Integration of RAB’s bus transport activities.

Since the second half of 2021, the bus transport activities of Regionalverkehr Alb-Bodensee GmbH (RAB) have been reported under the bus line of business. This results in limitations in the comparability of the figures from the first half of 2021 (RAB effect).

The clearly positive performance development in the bus line of business resulted from the recovery in demand after the Covid-19-related restrictions, the RAB effect and performance gains.

Operating profit figures improved again. However, the eco­­nomic situation remains challenging, due to special issues.

The positive development in performance had an effect on income:

• Revenues increased, mainly as a result of increased volumes. The loss of revenues from fares as a result of the introduction of the 9-Euro-Ticket (compensation will not take place until the second half of 2022) partially countered this positive development.
• Other operating income increased significantly, largely due to the utilization of provisions for impending losses, and the RAB effect.

There were additional negative effects on the expense side, mainly from the cost of materials and personnel expenses:

• The rise in the cost of materials resulted mainly from increased procurement of transport services for volume-­related reasons and from the rise in diesel prices.
• Personnel expenses increased due to the higher average number of employees and as a result of collective bargaining agreements.
• The increase in depreciation resulted from capital expenditures in the previous year as well as the RAB effect.
• Other operating expenses were around the level of the first half of 2021. Expense-reducing effects such as lower allocations to provisions for impending losses were almost completely offset by the RAB effect.

Capital expenditure activities declined compared to the first half of 2021. In the second half of 2022, significantly higher capital expenditures will be made due to capital expenditure-intensive commissionings.

The number of employees rose. Adjusted for the RAB effect, there was a slight decrease due to changes in performance (including shift from direct to contractor services).