DSB's quarterly report 1-3 quarter contains both growth in number of customers boarding the trains and increasing revenues, but also major economic challenges and a significant negative annual result.
Never before have so many passengers entered a DSB trains as in the first three quarters of 2011: 129 million times have a customer entered one of DSB's trains in Denmark. This corresponds to an increase of 6 per cent, or almost eight million, more customers compared with the same period in 2010.
»We are very pleased that passengers in record numbers continue to chose the train. Provided that the product we deliver is in order, then we also sense that the passengers opt for the train. And this trend is important in relation to our committed effort to ensure that DSB plays a significant role in strengthening public service transport and in meeting the common objective of doubling the use of train transport towards 2030,« explains DSB's CFO and acting CEO Jacob Kjær.
Deficit of DKK 509 million
Revenues from DSB's domestic and international customers increased satisfactory. Conversely, the accounts outline a serious economic situation which call for significant improvements: A total deficit of DKK 509 million in the first 9 months of 2011 compared with a profit of DKK 194 million in the corresponding period in 2010.
»To me this report illustrates the long haul, which DSB's management and DSB's employees have started with a view to turnaround the company. We spend more money than we earn, and we have an urgent need to improve the economy. But, at the same time, it is also a report which demonstrate that we have succeeded in attracting more customers to the train and that our revenues and train operation are sound,« says Jacob Kjær.
DSB's work to improve the company's economy and the accounting adjustments of the balance sheet in the 3rd quarter change expectations to the annual economic result. In addition to a write-down of the IC4 trains, the result is expected to be influenced by i.a. revenues from the sale of property, possible costs to restructurings, a reassessment of the costs concerning Rejsekort A/S and possible changes in provisions regarding DSBFirst Øresund.
Responsible reassessment of assets
»The downward adjustment of expectations to the overall result for the year is primarily owing a responsible reassessment of the value of our assets. And it does not alter our necessary objective to establish sustainable economic improvements corresponding to one billion DKK before 2015,« explains Jacob Kjær.
In particular a review of DSB's rolling stock situation, primarily the IC4, has affected the result by approximately DKK 400 million.
»We have carried out an estimated write-down of the value of the IC4 trains as a natural and responsible extension of the recently published Atkins report. Furthermore, our auditors fully agree with us in this estimate,« says Jacob Kjær.
»There is no doubt that DSB is challenged with regard to the economic situation, which is seriously imbalanced. We spend more money than we earn on our activities. We are currently fully committed to reversing this development. But it is positive that we are increasingly capable of attracting more customers to the train,« says Jacob Kjær.
Facts
Progress and economic downwards adjustment
- Approximately 162 million customers boarded a DSB train in the first 9 months of 2011 compared to 144 million customers in the same period last year. In Denmark, the total number of customers in the first 9 months of 2011 increased by 6 per cent compared to 2010. This is i.a. due to a customers growth in S-tog of 7 per cent and a customers growth in DSB's Long distance & Regional trains of 4 per cent.
- DSB's revenues from Danish customers increased by DKK 143 million compared with the same period last year. In addition, DKK 499 million from passenger revenues from DSB's international activities
- The number of events and decisions in the 3rd quarter of 2011 change expectations to the annual economic result
DSB's quarterly report 1-3 quarter 2011 including a special preface by Chairman of the Board Peter Schütze and acting CEO Jacob Kjær, CFO, can be read here