NOBINA INTERIM REPORT 1 JUNE–31 AUGUST 2017
PERFORMING AS PLANNED
THE SECOND QUARTER
· Net sales amounted to SEK 2,169 million (2,146), an increase of 1.1 per cent.
· Operating profit amounted to SEK 106 million (142).
· Profit after tax amounted to SEK 59 million (80), and earnings per share totalled SEK 0.68 (0.91).
· Cash flow from operations was SEK 294 million (336).
· Cash flow for the second quarter totalled SEK –308 million (–173). Cash flow for the period included the payment of the preceding year’s dividend of SEK –274 million (–230).
THE HALF-YEAR PERIOD 1 MARCH–31 AUGUST 2017
- Net sales amounted to SEK 4,445 million (4,370), an increase of 1.7 per cent.
- Operating profit was SEK 193 million (263).
- Profit after tax amounted to SEK 94 million (149), and earnings per share totalled SEK 1.07 (1.68).
- Cash flow from operations was SEK 516 million (622).
- Cash flow totalled SEK –372 million (–141). Cash flow for the period included the payment of the preceding year’s dividend of SEK –274 million (–230).
SIGNIFICANT EVENTS DURING THE QUARTER
- A new, SEK 320 million traffic contract in Kungsbacka was won with Västtrafik comprising 13 scheduled buses. The contract starts in June 2018 and extends over ten years.
- Extension of the contract with Skånetrafiken in Malmö and an investment in electric buses. The extension runs until 2021 and comprises a total of 83 scheduled buses, of which 13 are new electric buses.
- A collaboration with SL to develop city transport in Norrtälje Municipality together with an investment in electric buses. The contract extends until 2021 and five electric buses will enter traffic in August 2018.
- Troms Fylkestrafikk and Nobina Norway agreed to exercise only half of the extension option. The existing contract which encompasses 127 scheduled buses will end on 31 July 2019.
- Swebus was restructured as part of the strategic review of interregional operations. Swebus is being integrated into Nobina Sweden, management changes are ongoing and provisions have been made for nonrecurring expenses of SEK 15 million accumulated at the end of the second quarter.
- A partnership has been initiated with Telia aimed at analysing traveller needs in public transportation.
SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER
- No significant events noted after the end of the quarter.
In line with our expectations, earnings in the second quarter of the fiscal year reflected the effects from last year’s extensive contract migrations in Sweden. In combination with restructuring costs for our interregional operations, among other items, this resulted in a decline in pre-tax earnings to SEK 74 million (107). Underlying operations continue to develop as planned and we are now entering a calmer period of contract migrations during which we will focus on operational efficiency.
During the quarter, we intensified our collaborations in key areas for the future, for example, the strong market interest in electric buses resulted in an increasing number of tangible investments at our clients. This was most noticeable in Sweden and Norway.
As previously announced, we started during the spring a strategic review of our interregional operations. This is progressing as planned and, to date, has led to the decision to integrate Swebus operations into Nobina Sweden, with the consequent management changes and total provisions of SEK 15 million for nonrecurring expenses. These measures, separately, are expected to give an annual effect of 10 MSEK. Second-quarter earnings were also impacted by the decision to reduce the depreciation period for express buses. In a growing market, we have further strengthened underlying profitability in Finland with continued additions of extra traffic in Helsinki, while waiting for the completion of the new metro. Another piece of positive news is that profitability in the Nordic public transport industry continues to improve.
With society’s growing need for smart mobility solutions, public transportation will be of increasing importance moving forward. As the market leader, we aim to be at the forefront of this trend. We have an efficient business model and an organisation that innovatively and effectively manages our assignment as a key public service provider, as is clearly evidenced in our second quarter activities.
President and CEO
The information comprises such as Nobina AB (publ) is obliged to publicly disclose pursuant to the EU Market Abuse Regulation and the Securities Market Act. Through the above contact person, the information was submitted for publication at 8.00 am CET on 28 September 2017.