Today DSB announced its result for 2006. The Group recorded profits of DKK 1,008 million before tax, which is an improvement of DKK 15 million compared with 2005. In particular, the rise in passenger revenues has contributed to the improved result. Thus, in 2006, DSB has seen passenger numbers rise by 2.8 mil-lion passengers compared with 2005.

»It is satisfactory that, in spite of continued problems with the infrastructure, DSB has been able to record a better financial result than last year, while at the same time, attracting more customers», said Chairman of the Board Mogens Granborg in a comment to the result for the year.

Key messages from the preliminary statement of annual accounts:

Net turnover increased by DKK 127 million to DKK 9,534 million (DKK 9,407 mil-lion). Passenger revenues rose by 2 per cent, while revenue from transport con-tracts was on par with last year.

The increase in passenger numbers can primarily be attributed to journeys in East Denmark, particularly on Kystbanen and the Øresund line.  

DSB’s production quality in 2006 was affected by extensive problems with the infrastructure and, as a result, was significantly below target. A wide-ranging action plan incorporating a range of activities has been drawn up, including the introduction of a new timetable from January 7, 2007 and the establishment of a joint operations centre with Rail Net Denmark. The action plan will improve punctuality and customer information throughout 2007 and onwards. 

Towards the end of November 2006, it became clear that in some of DSB’s older S-trains, the seals encapsulating asbestos which during the 1960s and until the end of the 1970s, was used in train production, had cracked. DSB immediately launched an independent enquiry. In a report submitted on January 30, 2007, the result of the enquiry established that, in a number of instances, current legislation had not been complied with. DSB promptly responded, which led to DSB S-tog a/s’ CEO leaving the company. At the same time, a number of measures, which will assess and promote environmental and safety work within the company, were initiated.

DSB has obtained permission to test the new IC4 trains in mixed traffic without passengers on the section between Århus and Aalborg. The trials began on February 21, 2007.

Expectations for 2007

Profits before tax are expected to be in the region of DKK 600 million. Among the reasons why expected profits will fall below those for 2006 are the sale of land and buildings for DKK 172 million, increasing energy costs, costs in connection with punctuality and customer service improvement measures and expenses related to the travel time guarantee scheme.

In addition, there are rising interest rates and depreciation and a reduction in the contract payment as part of the 10 year transport contract with the Danish government. By contrast, passenger growth and efficiency measures are expected to have a positive effect on profits.

»Now it is a question of improving DSB's relations to our customers and this can only be done by delivering improved services. We need to achieve a better punctuality and we have initiated a series of activities with a view to improve traffic information«.

»I am pleased that we have finally succeeded in operating the new IC4 trains in mixed traffic. It is unacceptable that it has taken so long. Now we need to ensure that the project is driven forward«.

»In 2007, we will focus on doing our utmost with a view to win the Øresund tender and we look forward to the coming discussions on DSB's future company structure«, said Chairman of the Board Mogens Granborg.

Preliminary statement of accounts 2006