Nobina has secured a new contract, valued at more than EUR 127 million, from HSL to operate and develop city transport services in Helsinki and Vantaa. The contract is a further initiative to offer sustainable public transport services and includes the first electric articulated buses in the Helsinki region. The contract extends for a total of seven years with an option to extend for three additional years.

Strong position in a challenging market

During the first quarter, we continued to see negative impact on sales and earnings of last year’s extensive contract migration of some 1,100 buses. In addition, profitability in incentive contracts was adversely affected by a drop in passenger numbers by about 50 percent due to covid-19. Negotiations with some clients, concerning how these contracts can be adapted during the pandemic, are still ongoing while some negotiations have been finalized. We noted a slight recovery in passenger numbers in May and can confirm that Nobina’s stable financial position gives good conditions to further strengthen the market position in the long term.

The first quarter

• Net sales amounted to SEK 2,509 million (2,749), a decrease of 8.7 percent compared to the prior-year quarter, of which –8.1 percent was organic growth and –0.6 percent derived from currency effects.
• EBITA amounted to SEK 89 million (168).
• EBIT amounted to SEK 70 million (152).
• Profit after tax amounted to SEK 21 million (76), and earnings per share totalled SEK 0.24 (0.87) before dilution.
• Cash flow from operations was SEK 568 million (331).