Development in the first half of 2019
- Loss of performance dampens development, more passengers traveling by rail.
- Delayed vehicle deliveries require further replacement concepts.
- Expense increases hinder development
DB Regional | H1 | Change | |||
2019 | 2018 | absolute | % | ||
Passengers (million) | 1,259 | 1,258 | + 1 | + 0.1 | |
thereof rail | 977.7 | 960.6 | +17.1 | +1.8 | |
Volume sold (million pkm) | 23,661 | 24,011 | – 350 | – 1.5 | |
thereof rail | 20,382 | 20,582 | –200 | –1.0 | |
Volume produced (rail) (million train-path km) | 226.9 | 229.6 | –2.7 | –1.2 | |
Volume produced (bus) (million bus km) | 249.2 | 260.3 | –11.1 | –4.3 | |
Total revenues (€ million) | 4,412 | 4,376 | + 36 | + 0.8 | |
External revenues (€ million) | 4,361 | 4,325 | + 36 | + 0.8 | |
Rail concession fees (€ million) | 2,803 | 2,009 | + 794 | + 39.5 | |
EBITDA adjusted (€ million) | 512 | 530 | – 18 | – 3.4 | |
EBIT adjusted (€ million) | 186 | 214 | – 28 | – 13.1 | |
Gross capital expenditures (€ million) | 273 | 299 | – 26 | – 8.7 | |
Employees as of Jun 30 (FTE) | 36,362 | 35,876 | + 486 | + 1.4 |
The performance development was varied:
- In rail transport, performance losses had an impact on the volume sold and volume produced. The number of passengers showed better development.
- Bus services indicated a consistent decline in performance.
The economic development of DB Regional has been particularly affected by the development of the higher revenue and high performance in the rail line of business (share of revenues: 87%). Adjusted EBIT was generated exclusively in the rail line of business. The overall development in the first half of 2019 was challenging. The operating profit figures declined despite a slight increase in revenues. The development in bus services had the most impact in this area.
- Revenues increased as a result of price and performancerelated growth in rail transport. However, the declining trend in bus services had a more negative effect.
- Other operating income (+26.2%/€ +32 million) grew substantially, mainly as a result of higher income from vehicle sales and higher compensation payments.
On the expense side, there were noticeable additional burdens:
- Cost of materials (+1.2%/€ +34 million) was particularly driven by higher expenses for maintenance, infrastructure and rail replacement services.
- Personnel expenses (+4.7%/€ +47 million) increased as a result of the collective agreement and the higher number of employees.
- Other operating expenses (+3.5%/€ +10 million) in - creased, partly due to higher IT-related services.
- Depreciation (+3.2%/€ +10 million) mainly increased as a result of capital expenditures.
Capital expenditures fell across all lines of business.
76% of employees are employed in the rail line of business and 24% in the bus line of business. The number of employees rose slightly in both.
Rail line of business
- Performance stable overall.
- Personnel expenses increased in relation to collective bargaining and by personnel expansion.
- Delayed vehicle deliveries require further replacement concepts.
Rail line of business | H1 | Change | |||
2019 | 2018 | absolute | % | ||
Punctuality rail (%) | 94.7 | 94.4 | – | – | |
Passengers (million) | 998.3 | 984.0 | + 14.3 | + 1.5 | |
thereof rail | 977.7 | 960.6 | +17.1 | +1.8 | |
Volume sold (million pkm) | 20,691 | 20,933 | – 242 | – 1.2 | |
thereof rail | 20,382 | 20,582 | –200 | –1.0 | |
Volume produced (million train-path km) | 226.9 | 229.6 | – 2.7 | – 1.2 | |
Total revenues (€ million) | 3,853 | 3,879 | – 26 | – 0.7 | |
External revenues (€ million) | 3,805 | 3,760 | + 45 | + 1.2 | |
Rail concession fees (€ million) | 2,803 | 2,009 | + 794 | + 39.5 | |
EBITDA adjusted (€ million) | 490 | 491 | – 1 | – 0.2 | |
EBIT adjusted (€ million) | 196 | 203 | – 7 | – 3.4 | |
Gross capital expenditures (€ million) | 249 | 274 | – 25 | – 9.1 | |
Employee as of Jun 30 (FTE) | 27,721 | 27,472 | + 249 | + 0.9 |
Despite reduced punctuality of the S-Bahn (metro) Munich due to vehicle problems, punctuality in rail transport im - proved due to the increased values in regional transport and the S-Bahn (metro) Berlin.
The performance development in the rail line of business was dampened by tender losses. On the positive side, more stable production and associated lower train cancellations, performance expansions and higher capacity utilization contributed to a slight increase in the number of passengers.
Overall, economic development was virtually stable. The increase in revenues was offset by expense increases.
- Revenue development was significantly influenced by the increase in concession fees due to dynamization. Performance losses had a negative effect. A change in fair charging terms in gross contracts resulted in a shift between concession fees and revenues from fares not affecting profits.
- Other operating income rose noticeably, mainly due to higher compensation payments and higher income from vehicle sales.
On the expense side, there were additional charges, especially for personnel expenses and due to higher maintenance expenses:
- Cost of materials in particular increased due to higher costs for infrastructure use and increased maintenance expenses.
- Personnel expenses increased as a result of the collective agreement and the higher number of employees.
- Other operating expenses increased slightly due to higher IT services purchased.
- Depreciation increased slightly as a result of vehicle additions and redesign measures.
Capital expenditure activity declined due to lower vehicle access for awarded traffic contracts.
The number of employees rose slightly, partly as a result of recruitment and functional training.
Bus line of business
- Intensification of the competitive environment.
- Improvement of operational excellence.
- Delayed implementation of optimization measures.
Bus line of business | H1 | Change | |||
2019 | 2018 | absolute | % | ||
Punctuality bus (%) | 91.5 | 91.6 | – | – | |
Passengers (million) | 260.5 | 274.5 | – 14.0 | – 5.1 | |
Volume sold (million pkm) | 2,970 | 3,078 | – 108 | – 3.5 | |
Volume produced (million bus km) | 236.0 | 247.2 | – 11.2 | – 4.5 | |
Total revenues (€ million) | 580 | 611 | – 31 | – 5.1 | |
External revenues (€ million) | 556 | 565 | – 9 | – 1.6 | |
EBITDA adjusted (€ million) | 23 | 38 | – 15 | – 39.5 | |
EBIT adjusted (€ million) | – 9 | 11 | – 20 | – | |
Gross capital expenditures (€ million) | 25 | 25 | – | – | |
Employees as of Jun 30 (FTE) | 8,641 | 8,403 | + 238 | + 2.8 |
Punctuality in bus services was almost at the same level of the first half of 2018.
Performance in bus services declined as a result of tenderrelated performance losses.
Economic development remains challenging. A decline in income combined with a slight increase in expenses led to a significant decline in operating profit figures.
- Revenue development was characterized by performance losses and lower rail replacement services.
- Other operating income partly compensated for the revenue development, partly as a result of higher in - come from compensation and reimbursements.
On the expense side, there were noticeable additional burdens, particularly personnel expenses:
- Cost of materials climbed slightly, driven by higher diesel prices and supplier performance, among other things.
- Personnel expenses increased due to the higher number of employees and due to collective bargaining.
- Other operating expenses increased slightly. Reducing effects of IFRS 16 were offset by higher IT expenses and compensation expenses, among other things.
- The increased depreciation resulted, among other things, from capital expenditures in the previous year.
Capital expenditures increased due, among other things, to IT capital expenditures and due to IFRS 16 effects. The number of employees increased as of June 30, 2019, partly due to the hiring of bus drivers.