Cabonline Group Holding AB (publ) Interim report January to June 2020

APRIL-JUNE

• Revenue amounted to MSEK 794 (1,667), a decrease of 52%. Organically, revenue fell 52.4%.
• Adjusted EBITA was MSEK -3 (47) and the corresponding margin was -0.4% (2.8).
• Operating profit amounted to MSEK -22 (-137) including items affecting comparability of MSEK -10 (-25).
• Net loss for the period was MSEK -70 (-142).
• Earnings per share before and after dilution were
  SEK -2.30 (-4.35).
• Cash flow for the period was MSEK 75 (-1).

JANUARY-JUNE  

• Revenue amounted to MSEK 2,204 (3,167), a decrease of 30%. Organically, revenue fell 34.1%.
• Adjusted EBITA was MSEK 41 (109) and the corresponding margin was 1.8% (3.4).
• Operating profit amounted to MSEK -33 (-128) including items affecting comparability of MSEK -29 (-45).
• Net loss for the period was MSEK -119 (-154).
• Earnings per share before and after dilution were
  SEK -4.04 (-5.01).
• Cash flow for the period was MSEK 39 (-7).
   

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

• The ongoing process to renegotiate the terms of Cabonline's secured bond loans has been completed with new terms that apply from July 28. Additional information is available on Cabonline's website under Investors / Bonds.
• Cabonline enters into an agreement to acquire Ring Taxi in Ålesund and thereby strengthens its presence in northwestern Norway.

CEO´S COMMENT

The second quarter of the year was characterized by initiatives and measures to deal with the consequences of the Corona pandemic. The crisis we are experiencing has changed the society and our lives from one day to the next and leaves no one untouched. Leading in a crisis is about acting and making decisions based on what we know right now - the conditions are constantly changing, and no one can say how long the crisis will last. At Cabonline we quickly decided to plan for the worst and hope for the best. Because we acted promptly and vigorously in the beginning of the virus' outbreak, we have been able to ensure good liquidity and financial stability in the company. We are now seeing a recovery in the market, but the planning assumes that it will take time.

Having that said - the entire taxi industry has been hit hard and the situation remains tough for our transporters and drivers. To make things easier for our transporters, we have offered different kind of measures of support. E.g. in the beginning of the pandemic deferred payment of the fixed fee was offered during a two-month period with repayment later in the year. During the summer months, which are always a stressful period in taxi business, we have also temporarily removed the variable fee. Furthermore, we offer transporters help in applying for state adjustment support.

Cabonline's revenue comes largely from publicly procured transportation (B2P), a business segment that is not as severely affected as the corporate market (B2B) and the consumer market (B2C). Before the pandemic, B2P accounted for close to half of Cabonline's revenue, and after this period, the segment accounts for about two-thirds of revenue. As a result, we are relatively less affected than many colleagues in the taxi industry.

During the spring, we screened the company and carried out a thorough streamlining work in all parts of our various Nordic operations to ensure financial stability in both the short and long term. We continue to consolidate the business for booking and traffic management, and as part of this work, we closed a unit in Lund in June and moved the business to Sundbyberg. In parallel, our operations in Latvia support traffic management in Stockholm. We have also used the state's layoff support and continued high cost awareness prevails in the Group. As a further measure to strengthen our financial stability, we have renegotiated certain terms in Cabonline's bond. This refers to the key ratios, leverage maintenance covenant, which concerns the relationship between the company’s debt and the profitability. The proposed adjusted terms were approved by the bondholders on July 22, which we appreciated and puts us in a better situation to deal with the challenges we face as a consequence of the pandemic.

To stimulate demand, we have identified new business opportunities and initiated services in addition to the usual taxi business. These initiatives are about delivering companies' internal mail, home deliveries from the grocery trade, lunches, and dinners from restaurants etcetera. In the Stockholm region, we have delivered Covid tests to healthcare staff for self-tests in their home, followed by tests for private individuals when these began to be offered to the public in mid-June. It involves handling more than 20,000 tests from the end of April through July.

In times when we are asked to avoid public transport, we have had an attractive fixed price offer for travel within the city center in most cities in Sweden. This has stimulated the demand for shorter trips and led us to reach new target groups. Most respondents of the campaign are women aged 45-54. Through the measures, we have also directed booking and payment to the app, which provides more efficient handling and makes us an easier choice on the next trip.

In Norway, we also see positive effects after the acquisition of Miljötaxi Stavanger AS made in November 2019. We have now won three public contracts for school driving in Stavanger. The tenders run for one year at a time with the option of extension to a total of three years.

When writing this, the authorities are calling for continued caution and we are working to ensure that both drivers and passengers feel safe in the cars. Whether a vaccine comes in the near future or not, this experience has taught us to live with a lethal virus in society. We provide training on hygiene and safe travel that the Swedish Taxi Association has developed together with health care institution Sophiahemmet. It is possible to install plexiglass protection in the cars and we provide drivers and transporters with hand sanitizer and disinfection wipes to reduce the risk of infection spreading.

I look forward to the autumn with confidence and would like to thank all the drivers, transporters and employees for the re-adjustment work we have done together. We continue to work to further increase the quality of our service delivery for good availability and a safe and pleasant treatment. We are well equipped for a recovery in the market and to continue to assist all our customer segments with transports important to society.

Peter Viinapuu
President and CEO 
August 2020

This information is information that Cabonline Group Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 13:00 CET on August 20, 2020.

For further information, please contact:
Peter Viinapuu, CEO, tel. +46 76 641 10 06, peter.viinapuu@cabonbline.com
Anneli Lindblom, CFO, tel. +46 76 593 84 00, anneli.lindblom@cabonline.com

About Cabonline:
Cabonline is the leading taxi company in the Nordic region with 3,000 connected taxi firms and approximately 5,700 vehicles in Sweden, Norway, Finland and Denmark. Cabonline contains a series of well-known brands, such as TaxiKurir, Norgestaxi, TOPCAB, Kovanen, Taxi Skåne, Taxi Väst, Umeå Taxi, Sverigetaxi and Taxi 4x27. Through Cabonline, taxi firms have access to attractive customer agreements, support from industry-leading technological development and utilization of economies of scale, efficient service and a shared infrastructure. The Group has revenue of approximately SEK 6.5 billion and performs about 45,000 journeys per day. For further information: www.cabonlinegroup.com.