Cabonline Group Holding AB (publ) Interim report January to March 2022

JANUARY - MARCH

• Revenue amounted to MSEK 1,210 (945), an increase of 28%. Organically, revenue increased by 26%. 
• Adjusted EBITA amounted to MSEK 62 (45), and the corresponding margin was 5.1% (4.8). 
• Operating profit amounted to MSEK 52 (34), including items affecting comparability of MSEK -2 (-4).  
• Net income for the period amounted to MSEK 1 (-17).  
• Earnings per share before and after dilution amounted to SEK -0.31 (-0.82). 
• Cash flow from operating activities amounted to MSEK 19 (66). 
• The current outstanding bond that due for redemption in December 2022 was refinanced after the end of the period. The new bond has a term of 4 years. 

CEO ́s comment

Positive start to 2022 and increased investments

After strong 2021 results, we started the new year with a better result for the first quarter compared to the same quarter last year. At the beginning of the first quarter, demand was affected by the pandemic, but again we saw that when travel restrictions around the Nordic region are lifted, travel increases. Therefore, we are increasing our efforts to create an even better foundation for long-term growth. The focus is primarily on developing infrastructure, the customer offering and attracting the market's best transporters and drivers. In addition, we are further increasing our sustainability efforts to strengthen our ambitious climate goals further.

Positive signals

The last two years have been the most challenging in the history of the taxi industry, so it is gratifying that volumes are increasing in all segments. The number of connected vehicles is growing, and revenue per car on average is higher than before the pandemic. 

In Finland, turnover in March 2022 was twice as high as in March 2021. Flygtaxi volumes increase as air travel increases, and the number of bookings increased by 204% in the quarter compared to the same quarter last year. In addition, the number of app-booked trips increased during the quarter by 48% compared to the previous year, which is also a sign that both corporate and private travel has started to recover. 

During the quarter, we continued to win public procurements. Among them are patient trips in Møre and Romsdal, an extension of travel service in Sundsvall, continued confidence to drive school transports, tour-bound trips in sub-area Southwest Stockholm, and continued confidence to drive school transports in Botkyrka municipality.

Sustainable steps towards future growth

Cabonline's ambition is to be a market leader in Europe in sustainable taxi transportation. Important milestones for this are reducing our carbon dioxide emissions affecting the climate and increasing the share of non-fossil vehicles in our car fleet. 

We have therefore taken new steps in our ambitious sustainability strategy. We have committed to three important company-wide sustainability milestones in line with the Science Based Targets initiative (SBTi): 1) increase the share of fossil fuel-independent vehicles, 2) reduce CO2e emissions in line with the 1.5 degrees goal (Paris Agreement) and 3) increase the percentage of cars with alcohol ignition interlocks installed. 

In addition, in March, we presented a collaboration in the Gothenburg region. We are accelerating the work to reach our ambitious climate goal of completely fossil-free transport by the end of 2025. On March 3, 2022, Cabonline started operating Sweden's first taxis with wireless charging in Gothenburg. The project is based on entirely new technology. Charging pads are placed in the street, and the taxis are charged wirelessly, using magnetic fields. The cars will be charged automatically during pick-ups and drop-offs with the technology. The project is a collaboration between Cabonline, Vattenfall Incharge, Volvo Cars, Momentum Dynamics, Göteborg Energi and Business Region Göteborg.  

That we are active in reducing our climate footprint has contributed to the fact that Cabonline Group, in an industry comparison, has come a long way in sustainability. In addition, we feel that it strengthens our attractiveness to travelers, drivers, transporters, community services, companies and employers. 

The work to create an even more inclusive corporate culture is one of the cornerstones of our sustainability work. To further promote our diversity and inclusion, we have initiated extensive training and certification to increase the competence within Cabonline so that our business even better reflects our multifaceted and multicultural world. 

Geopolitical concerns 

I would also like to mention that it is with dismay that we have been able to follow developments in Ukraine in recent months. Our thoughts are with millions of people who are directly or indirectly affected. We also express our deepest sympathy and compassion for the people so terribly affected by Russia's war against Ukraine. We join forces with everyone around the world who is pleading for peace. 

Geopolitical turmoil and economic sanctions have not yet affected travel, but rapidly rising fuel prices greatly impact our transporters. Therefore, based on market conditions, we have implemented price adjustments. In addition, our fleet expansion is affected by disruptions in the supply chains of new cars, leading to longer delivery times than usual. 

New bond listed on Nasdaq Stockholm 

To refinance the bond that would mature during 2022 a new bond has been issued with a total amount of MSEK 2,000 of which MSEK 1,650 is outstanding. The Bond 2019/22 has been redeemed and the new bond 2022/26 will, as the previous bond, be listed on Nasdaq Stockholm. 

Forward-thinking 

We remain cautious due to the current uncertainty. The lifting of restrictions means that we are in a good position to take advantage of the opportunities in the market and create lasting value for the future. 

Cabonline will continue to implement projects to ensure competitiveness in the long term. Strengths as the Nordic region's leading taxi company and premium functions such as Flygtaxi, Kovanen, Taxi Skåne and TOPCAB will continue to be important for, for example, our corporate customers. 

Once again, I would like to express my appreciation to all drivers, transporters and colleagues for their commitment and efforts. I would also like to thank our customers for the trust we enjoy. I look to the future with great confidence and the work we do together to increase the quality of our service delivery for good accessibility, safe travel, and pleasant treatment. 

Dag Kibsgaard-Petersen
President and CEO
May 2021

For further information, please contact:
Dag Kibsgaard-Petersen, CEO, tel +47 400 11 981, dag.kibsgaard-petersen@cabonline.com

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 May 6, 2022.

About Cabonline Group:

Cabonline is the leading taxi company in the Nordic region with, ~2,600 connected transporters and ~4,600 vehicles in Sweden, Norway, Finland and Denmark. Cabonline operates a series of well-known brands, such as Flygtaxi, TaxiKurir, Norgestaxi, TOPCAB, Kovanen, Taxi Skåne, Taxi Väst, Umeå Taxi, Sverigetaxi and Taxi 4x27. Through Cabonline, transporters have access to attractive customer agreements, support from industry-leading technology and efficient services where shared infrastructure delivers economies of scale. In 2021, Cabonline’s revenue was approximately SEK4.5 billion. For further information: cabonlinegroup.com/en