Development in the first half of 2023
- Noticeable ongoing recovery in demand leads to a significantly more positive revenue development.
- Factors such as higher expenses for energy and strikes by the EVG are having an impact on profit development.
- Punctuality was severely affected by construction-related capacity restrictions in the infrastructure.
DB Long-Distance Transport | H 1 | Change | H 1 2019 | ||
2023 | 2022 | absolute | % | ||
Punctuality (rail) (%) | 68.7 | 69.6 | –0.9 | – | 77.2 |
Customer satisfaction (SI) | 77.1 | 75.4 | +1.7 | – | 77.4 |
Passengers (rail) (million) | 68.2 | 59.1 | +9.1 | +15.4 | 71.8 |
Volume sold (rail) (million pkm) | 21,658 | 18,339 | +3,319 | +18.1 | 20,894 |
Volume produced (million train-path km) | 77.9 | 78.8 | –0.9 | –1.1 | 73.0 |
Load factor (%) | 47.5 | 41.1 | +6.4 | – | 53.3 |
Total revenues (€ million) | 2,872 | 2,116 | +756 | +35.7 | 2,392 |
External revenues (€ million) | 2,791 | 2,052 | +739 | +36.0 | 2,310 |
EBITDA adjusted (€ million) | 182 | 9 | +173 | – | 367 |
EBIT adjusted (€ million) | –62 | –195 | +133 | –68.2 | 224 |
Gross capital expenditures (€ million) | 814 | 793 | +21 | +2.6 | 169 |
Employees as of Jun 30 (FTE) | 20,501 | 18,852 | +1,649 | +8.7 | 16,938 |
Average employees (FTE) | 19,930 | 18,838 | +1,092 | +5.8 | 16,864 |
Punctuality was slightly worse. This was caused primarily by a high number of infrastructure disruptions due to obsolete and fault-prone installations, as well as capacity limitations due to construction work on the core network. In addition, the high number of construction and maintenance measures not notified on time led to instability in the timetable processes. The additional inspections, establishment of restricted-speed sections and replacement of concrete ties required in connection with the defective concrete ties remained a core challenge for the quality of operations in the first half of 2023. In addition, high network utilization and partial congestion of major traffic hubs have a negative effect on punctuality.
After a positive start to the year, customer satisfaction fell by mid-2023. Overall, it improved in the first half of 2023 as a result of better assessments in the areas of comfort and service as well as the monthly punctuality development. Poor punctuality and further possible strike action remain the biggest challenges for the remainder of the year.
The positive trend in performance development continued in the first half of 2023:
- Number of passengers and volume sold: Significant increase, driven mainly by recovery effects, as the first quarter of 2022 was still significantly influenced by measures to contain the Covid-19 pandemic. The EVG’s strike action had a dampening effect.
- Volume produced: Timetable adjustments due to construction on the network as well as strike-related cancellations resulted in a slight decline.
- Load factor: Marked improvement again as a result of the increased number of passengers.
Economic development improved significantly, but continues to be challenging. Operating profit figures improved significantly, driven by a disproportionate increase in revenues compared to expenses:
- Revenues: Price- and performance-related growth was very significant. The EVG’s strike action had a dampening effect.
- Other operating income: Significant decline (–42.8%/€ –136 million), mainly as a result of the abolition of the Federal Government’s train-path price reimbursements as partial compensation for damages in connection with the Covid-19 pandemic. In particular, higher income from compensation for damages had a negative effect.
Expenses increased noticeably, especially as a result of energy cost increases and measures to improve performance quality.
- Cost of materials: Increase (+21.4%/€ +315 million) resulted mainly from price-related higher energy expenses (partial compensatory effects from the electricity price brake are reported in the extraordinary result). Additional increases resulted, for example, from higher expenses for inspections and maintenance due to increases in price and quantity, increased project costs, for example to improve onboard WiFi quality, higher goods consumption for onboard catering due to sales, and increased expenses for vehicle cleaning. Weak operating quality and a higher number of passengers also led to additional customer service expenses.
- Other operating expenses: Increase (+29.8%/€ +101 million), resulting, for example, from the implementation of IT projects and digitalization measures as well as the Group levy introduced in the first half of 2023. In addition, more intensive advertising activities to win back customers, increased qualification actions for employees, increased travel, and positive performance development all had an impact on expenses.
- Depreciation: Increase (+19.6%/€ +40 million) mainly as a result of the expansion of the high-speed fleet (ICE 4 and ICE 3neo trains) as well as the redesign of ICE 1 and ICE 3 trains. This was partly counteracted by ICE 2 and Intercity 1 trains reaching the end of their useful life.
- Personnel expenses: Development (+6.3%/€ +39 million) resulted predominantly from a higher number of employees.
Capital expenditure activities increased and resulted from continued vehicle projects.
The number of employees increased as of June 30, 2023, mainly due to performance, as a result of the implementation of measures to improve quality and increase capacity as well as the takeover of employees from DB Sales.