Development in the first half of 2024
- Significant increase in volume sold due to the introduction of the Germany-Ticket in May 2023 as well as tenders won in the bus sector.
- Additional burdens due to strikes, higher personnel costs and extensive construction work on the network.
- Operating profit development remains under pressure.
DB Regional | H1 | Change | ||
2024 | 2023 | absolute | % | |
Punctuality (rail) (%) | 90.8 | 92.4 | –1.6 | – |
Punctuality (bus) (%) | 86.2 | 85.9 | +0.3 | – |
Customer satisfaction (grade) – rail | 2.2 | 2.2 | – | – |
Customer satisfaction (grade) – bus | 2.1 | 2.0 | +0.1 | – |
Passengers (million) | 1,128 | 1,076 | +52 | +4.8 |
thereof rail | 855.0 | 808.3 | +46.7 | +5.8 |
Volume sold (million pkm) | 22,544 | 19,598 | +2,946 | +15.0 |
thereof rail | 19,508 | 16,665 | +2,843 | +17.1 |
Volume produced (rail) (million train-path km) | 200.6 | 210.8 | –10.2 | –4.8 |
Volume produced (bus) (million bus km) | 267.9 | 256.8 | +11.1 | +4.3 |
Total revenues (€ million) | 5,032 | 4,749 | +283 | +6.0 |
External revenues (€ million) | 4,953 | 4,683 | +270 | +5.8 |
Rail concession fees (€ million) | 3,521 | 3,334 | +187 | +5.6 |
EBITDA adjusted (€ million) | 264 | 295 | –31 | –10.5 |
EBIT adjusted (€ million) | –66 | –38 | –28 | +73.7 |
Gross capital expenditures (€ million) | 200 | 198 | +2 | +1.0 |
Employees as of Jun 30 (FTE) | 41,128 | 38,414 | +2,714 | +7.1 |
Average employees (FTE) | 40,440 | 38,394 | +2,046 | +5.3 |
In regional rail passenger transport, punctuality has decreased in both regional transport and S-Bahn (metro) services. Quality of operations continued to be significantly affected by a number of structural issues. The main drivers are infrastructure disruptions, primarily due to superstructure faults and restricted speed sections, capacity restrictions due to construction measures with a focus on regional transport and a high traffic load in hubs with a simultaneous increase in passenger numbers, resulting in passing on of delays. In addition, events such as the floods in southern Germany at the beginning of June 2024 had a major impact on the quality of operations.
Punctuality on bus services has improved slightly compared to the first half of 2023.
The development of customer satisfaction was mixed:
- DB Regional Rail: Passenger satisfaction with their current journey (regional transport and S-Bahn (metro) trains) remained unchanged in the first half of 2024.
- DB Regional Road: Satisfaction with the current journey was slightly weaker at the bus companies, driven by a higher number of canceled journeys.
Passenger numbers at DB Regional developed positively in the first half of 2024, among others due to the Germany-Ticket and significant tender wins by DB Regional Rail. Overall, performance development was positive:
- DB Regional Rail: The number of passengers and volume sold increased. Positive effects from the Germany-Ticket being effective over the entire first half-of 2024 were partially offset by strike measures by the GDL in the first quarter of 2024.
- DB Regional Road: In particular, tender wins and additional rail replacement services led to a positive performance development.
The economic development of DB Regional was challenging in the first half of 2024 – revenue growth was offset by additional burdens, particularly in the DB Regional Rail line of business, including strikes, increased personnel expenses, vehicle maintenance and additional construction work on the network. Operating profit figures were weaker and adjusted EBIT remained negative. To improve the profit situation, a countermeasures program was launched in the second quarter of 2024, which has already had an impact.
Overall, income development was positive:
- Revenues (+6.0%/€ +283 million): The increase was primarily due to higher concession fees, demand-driven increases in fare revenues as well as performance gains and additional rail replacement services in bus transportation. Revenues also increased due to income from final invoices under transport contracts in particular. Strike actions by the GDL had a dampening effect.
- Other operating income (–12.7%/€ –38 million): Decrease mainly due to the discontinuation of Government grants from the industry solution for local public transport, which served to compensate for Covid-19-related losses, and due to the omission of damage compensation payments.
On the expense side, there were additional burdens, mainly as a result of higher personnel expenses as a result of collective bargaining agreements and increased material costs:
- Personnel expenses (+10.0%/€ +120 million): Increase mainly as a result of collective bargaining agreements and an increase in the number of employees, partly due to increased recruitment (DB Regional Rail) and tender wins (DB Regional Road).
- Cost of materials (+3.7%/€ +119 million): Increase mainly due to intensified vehicle maintenance measures and higher volumes of purchased transport services at DB Regional Road. Expenses for construction-related rail replacement services increased due to higher volumes and prices. This was offset by lower energy and infrastructure utilization expenses due to strikes, which were partially offset by price effects.
- Other operating expenses (+13.8%/€ +54 million): Increase due, among other things, to the implementation of replacement services as a result of the strained infrastructural situation and higher miscellaneous costs for training and continuing education.
By contrast, depreciation decreased slightly:
- Depreciation (–0.9%/€ –3 million): A slight decrease, driven, among other things, by the extension of useful lives of vehicles. The capital expenditure-related increase at DB Regional Road had a dampening effect.
Capital expenditure activity increased in line with the requirements of the transport contracts won, driven by DB Regional Road.
The number of employees was above the level as of June 30, 2023, for performance-related reasons.
- Further increase in volume sold, mainly due to the Germany-Ticket.
- Additional burdens, in particular due to strikes, higher personnel costs and significant construction activity in the network.
DB Regional Rail line of business | H1 | Change | ||
2024 | 2023 | absolute | % | |
Passengers (million) | 855.0 | 808.3 | +46.7 | +5.8 |
Volume sold (million pkm) | 19,508 | 16,665 | +2,843 | +17.1 |
Volume produced (million train-path km) | 200.6 | 210.8 | –10.2 | –4.8 |
Total revenues (€ million) | 4,278 | 4,094 | +184 | +4.5 |
External revenues (€ million) | 4,221 | 4,040 | +181 | +4.5 |
Rail concession fees (€ million) | 3,521 | 3,334 | +187 | +5.6 |
EBITDA adjusted (€ million) | 213 | 269 | –56 | –20.8 |
EBIT adjusted (€ million) | –68 | –19 | –49 | – |
Gross capital expenditures (€ million) | 109 | 139 | –30 | –21.6 |
Employees as of Jun 30 (FTE) | 29,892 | 28,368 | +1,524 | +5.4 |
The positive development in demand continued in the first half of 2024. The effectiveness of the Germany-Ticket throughout the entire first half of 2024 had a noticeable positive effect. As a result, the number of passengers and, in particular, volume sold increased. The strike measures by the GDL in the first quarter of 2024 had a dampening effect, resulting in a decline in volume produced. The high volume of construction activity in the network also had a negative impact.
Economic development remained challenging and was significantly weaker. The positive revenue development was offset by a noticeable increase in expenses.
- Income increased: This was mainly driven by higher concession fees, a performance-related increase in fare revenues and income from final invoices under transport contracts. The GDL strikes and the discontinuation of Government grants from the industry solution for local public transport and damage compensation payments in connection with delayed vehicle deliveries had a dampening effect.
- The expense side rose more strongly: This was mainly due to higher personnel expenses as a result of tariff increases and a higher number of employees due to increased recruitment. Additional burdens also resulted from the intensification of vehicle maintenance measures and rail replacement services, among other things. Higher energy and infrastructure utilization costs were offset by lower volumes due to strikes.
Capital expenditure activities developed in line with the requirements from transport contracts awarded and were down significantly.
The number of employees rose significantly as a result of increased recruitment activities.
- Performance gains and additional rail replacement services drove the revenue and profit development.
- Strike actions by ver.di had a dampening effect.
DB Regional Road line of business | H1 | Change | ||
2024 | 2023 | absolute | % | |
Passengers (million) | 273.3 | 268.1 | +5.2 | +1.9 |
Volume sold (million pkm) | 3,036 | 2,933 | +103 | +3.5 |
Volume produced (million bus km) | 267.9 | 256.8 | +11.1 | +4.3 |
Total revenues (€ million) | 884 | 760 | +124 | +16.3 |
External revenues (€ million) | 732 | 643 | +89 | +13.8 |
EBITDA adjusted (€ million) | 51 | 27 | +24 | +88.9 |
EBIT adjusted (€ million) | 1 | –18 | +19 | – |
Gross capital expenditures (€ million) | 91 | 60 | +31 | +51.7 |
Employees as of Jun 30 (FTE) | 11,236 | 10,047 | +1,189 | +11.8 |
The positive performance development in bus transport was mainly the result of tender wins.
The operating profit figures improved significantly. However, the economic situation remains challenging.
- Income increased primarily as a result of performance development, in particular due to tender wins, contractual adjustments of concession fees for higher costs and final invoices under transport contracts as well as additional rail replacement services. Negative effects from strike actions in local public transport had a slightly dampening effect.
- The increase in expenses was weaker. The main expense drivers were higher expenses for purchased transport services and maintenance due to price and volume factors. Personnel expenses also increased due to the significantly higher number of employees and as a result of collective bargaining agreements. Expenses for diesel increased as a result of the higher volume produced. Depreciation increased due to capital expenditures.
Capital expenditures increased significantly due to performance gains and as a result of catch-up effects from the previous year.
The increase in the number of employees was mainly attributable to increases in drivers as a result of performance gains.