The Group's loss before tax totalled DKK 18 million com-pared with profits of DKK 22 million in the corresponding quarter in 2010. The loss is partly owing to cost to con-sultants and auditing regarding the clean up in DSBFirst Øresund, and partly to redundancy costs and start up costs in the new operations. However, the result has also been influenced by several positive factors, including more S-tog customers and the effect of initiated efficiency enhance-ments and savings.
Furthermore, the result is influenced by an income of DKK 51 million of the provisions and write-downs totalling DKK 725 million, which were recognised in the annual accounts for 2010. Consequently, the result in DSBFirst Øresund has no effect on profits before tax in the consolidated Group ac-counts in the 1st quarter of 2011. As per 31 December 2010 provisions stood at DKK 422 million. In addition write-downs amount to DKK 303 million. Hereafter the balance of the provisions total DKK 371 million as per 31 March 2011.
Status on investigations concerning DSBFirst Øresund
DSB and the Ministry of Transport have initiated a number of investigations and analyses of the financial situation in DSBFirst Øresund, issues regarding the Helgoland transaction and of new procedures concerning inter-company transactions in DSB. The work also includes possible state aid issues and has not been concluded yet. At the same time, DSB is in the process of implementing ongoing efficiency measures in DSBFirst Øresund while negotiating with the transport au-thorities and FirstGroup regarding a more durable model for the traffic on Kystbanen and on the Swedish part of the Øresund traffic.
More customers and improved punctuality
In spite of a significant media pressure on DSB, the employ-ees are still working targeted at ensuring a good travel experience for our customers. Thus in the 1st quarter of 2011 we have seen a record number of customers in our trains while at the same time experiencing a significantly improved punctuality
In Long distance & Regional trains, the number of delays fell by almost 20 per cent compared with the 1st quarter of 2010 and stood at 9.8 per cent (11.9 per cent). The satisfac-tory development is the result of a continued focussed effort to improve the general punctuality. The number of delays in S-tog fell by 31 per cent to 4.4 percent compared with the 1st quarter 2010. In the 1st quarter of 2011 both S-tog and Long distance & Regional trains have seen fewer delays than the fixed targets in the transport contracts.
In the 1st quarter of 2011, DSBFirst Øresund's Danish opera-tor punctuality was 98.8 per cent. At the same time, the Swedish operator punctuality was 99.9 per cent.
More customers in the trains
DSB had 53 million customers in the 1st quarter of 2011, including the new operations in Germany and in Sweden. The number of customers on the Danish market increased by 5 per cent, which is due to an impressive increase of 7 per cent in the number of S-tog customers. Of these, only 3 percentage points can be attributed to more customers on the lines, which have been marked by track closures in 2010 and in 2011.
With more than 25 million customers S-tog had the best quarter in more than 20 years. At the same time, Long distance & Regional trains has seen an increase in the number of customers of 2 per cent compared to last year, which is primarily due to a significant increase in the number of na-tional journeys. The development is due to the satisfactory punctuality and recent years' customer initiatives, for in-stance customers being able to bring their bicycles on the train free of charge, Shopping Sundays with the S-tog, and new fare and service concepts such as Orange and WildCard.
In the 1st quarter of 2011 DSBFirst in Denmark has seen an increase in customers of 2 per cent.
IC4 status
In January 2011 DSB put into operation the first double coupled IC4 train sets. Subsequently, DSB ascertained that the quality and operating stability of the train sets at pre-sent do not live up to expectations and therefore the train sets are not at a level, which DSB and DSB's customers can accept. Consequently, DSB is now intensifying its focus on the remaining deliveries from AnsaldoBreda to ensure that the producer lives up to the fixed quality demands. Fur-thermore, an independent review has been initiated with a view to uncover how to improve the operating stability of the IC4 trains. At the same time, it is being investigated what legal steps are available to DSB in the agreements with AnsaldoBreda. At the end of April 2011 AnsaldoBreada has delivered 42 IC4 train sets, of which the 28 train sets are 2nd generation train sets.
Increased efficiency
In 2011 DSB has launched a number of new projects with a view to adjust the company to the financial situation, including a hiring freeze and salary restraints across the com-pany and a marked reduction in the use of consultants; the objective being total savings in the region of DKK 300 million with full year effect in 2012.
Expectations for 2011
The DSB Group’s profit before tax is expected to be around DKK 200-250 million in 2011, excluding expenses to possi-ble restructurings and possible changes in provisions concerning DSBFirst Øresund. Profits from sale of property is expected to total DKK 140 million and AnsaldoBreda discounts to DKK total 70 million. At the presentation of the annual accounts for 2010, DSB expected profits of DKK 300 million. The change is primarily due to costs in connection with the initiated investigations concerning DSBFirst Øre-sund and the leasing of double deckers as a result of the delay in the IC4 delivery.
See DSB 1 Quarter Report 2011