Development of business units

Development in the first half of 2023

  •  Operating profit improvements, particularly as a result of the introduction of a Group levy and performance-related improvements at DB Operational Services.
  •  Digitalization and Group projects advanced.
  •  The number of employees increased, mainly in line with performance development.

Subsidiaries/Other

H 1

Change

H 1

2019

2023

2022

absolute

%

Total revenues (€ million)

3,119

2,790

+329

+11.8

2,398

DB Business Services

1

0

+1

31

DB Operational Services

3,575

3,213

+362

+11.3

2,759

Other/consolidation

–457

–423

–34

+8.0

–392

External revenues (€ million)

351

314

+37

+11.8

280

EBITDA adjusted (€ million)

207

–49

+256

–119

EBIT adjusted (€ million)

–95

–328

+233

–71.0

–366

DB Business Services

–64

–38

–26

+68.4

–36

DB Operational Services

66

–22

+88

–59

Other

–97

–268

+171

–63.8

–271

Gross capital expenditures (€ million)

324

290

+34

+11.7

318

DB Business Services

1

1

2

DB Operational Services

224

164

+60

+36.6

202

Other

99

125

–26

–20.8

114

Net capital expenditures (€ million)

322

286

+36

+12.6

318

Employees as of Jun 30 (FTE)

60,447

58,975

+1,472

+2.5

54,926

DB Business Services

11,481

11,573

–92

–0.8

11,907

DB Operational Services

46,403

44,937

+1,466

+3.3

40,576

Other

2,563

2,465

+98

+4.0

2,443

Average employees (FTE)

60,284

58,657

+1,627

+2.8

54,502

The increase in total revenues was driven by higher revenues from intra-Group customers of DB Operational Services companies. This was mainly due to a higher demand for solutions for digitization and cybersecurity (DB Systel) as well as an increased project business in the areas of vehicles (DB Vehicle Maintenance) and construction, in particular in the rail infrastructure (DB Rail Construction). In addition, the services provided by DB Services and DB Security increased, mainly as a result of the continuing recovery in passenger transport demand, as well as the income from vehicle sales at DB Connect.

Revenues from non-Group customers increased considerably at a low level. This was mainly due to an increase in project business (DB Rail Construction, DB E.C.O.).

The operating profit figures in the Other area were significantly affected by corporate management functions performed for the business units. Since the first half of 2023, the apportionable costs have been passed on to the business units via a Group levy (shown in other operating income). Adjusted EBITDA and adjusted EBIT were significantly better as a result. Adjusted for the positive effect of the introduction of a Group levy in the first half of 2023, profit growth was less strong.

Burdens resulted, among other things, from higher expenses for materials (mainly due to performance; in particular DB Vehicle Maintenance, DB Rail Construction and DB Systel) as well as personnel (essentially an increase in the average number of employees). The expenses for rents and travel expenses were also above the level of the first half of 2022. The partial transfer of activities of DB Sales to DB Long-Distance, among other things, had a partly compensating effect.

The increase in capital expenditures was mainly due to higher capital expenditures in particularly the depot infrastructure at DB Vehicle Maintenance, as well as in mobile devices and the network infrastructure at DB Systel. Following delivery difficulties in the previous year, improved vehicle availability at DB Connect also led to an increase in capital expenditure activities. On the other hand, lower effects from the extension and ­adjustment of existing rental and leasing contracts at DB Real Estate partly compensated for this.

The number of employees increased, driven mainly by increased personnel at DB Operational Services companies, in particular in the DB E.C.O. Group, DB Systel, DB Vehicle Maintenance and DB Rail Construction resulting from expanded digitalization and quality measures, additional security requirements and an increase in the vertical range of production. This was offset by a decrease in the number of employees due, among other things, to the partial transfer of activities of DB Sales to DB Long-Distance and the personnel service providers of DB Group.

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