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

JULY – SEPTEMBER

• Revenue amounted to MSEK 1,299 (1,162), an increase of 12%. Organically, revenue increased by 11%.
• Adjusted EBITA amounted to MSEK 49 (68), and the corresponding margin was 3.7% (5.9).
• Operating profit amounted to MSEK 32 (61), including items affecting comparability of MSEK -10 (1).
• Net income for the period amounted to MSEK -21 (11).
• Earnings per share before and after dilution amounted to SEK -0.95 (-0.05).
• Cash flow from operating activities amounted to MSEK -36 (31).

JANUARY - SEPTEMBER

• Revenue amounted to MSEK 3,991 (3,197), an increase of 25%. Organically, revenue increased by 23%.
• Adjusted EBITA amounted to MSEK 160 (185), and the corresponding margin was 4.0% (5.8).
• Operating profit amounted to MSEK 119 (156), including items affecting comparability of MSEK -18 (-7).
• Net income for the period amounted to MSEK -108 (4).
• Earnings per share before and after dilution amounted to SEK -4.06 (-0.93).
• Cash flow from operating activities amounted to MSEK -104 (182).

CEO's comment

Recovery continues in the third quarter

Cabonline's recovery has continued in the third quarter. We report a 12% increase in revenue in the third quarter compared to the same quarter last year.

As before, our priority is to maintain a high level of service to our passengers, drivers and transporters, which we succeed in doing based on the challenges of meeting demand, but at a temporarily slightly increased cost due to continued capacity shortages. This means that profitability is affected in the short term, which is reflected in the operating margin. However, we are convinced that in the longer term, we will increase our competitiveness and gain market share with our offer and Nordic coverage.

As the Nordic region's largest player in the taxi industry, we are responsible for protecting travellers' opportunities to book affordable, good and sustainable trips by taxi. At the same time, we also have a responsibility to our affiliated transporters for their increased costs and to ensure that they are reasonably paid. We take our tasks very seriously and work diligently and systematically to balance our mission.

Development during the quarter

Continued capacity problems have sometimes given us challenges to meet demand at its peak, which has, in part, negatively affected punctuality. The number of connected vehicles is increasing during the quarter, and we continue to work intensively to increase our capacity.

During the quarter, we have continued to win procurements, and it is very gratifying that we continue to be trusted to run mobility services in Stockholm until March 2026. This is the largest procurement of mobility services in the Nordic region, and the agreement can be extended up to another year, scheduled to start on April 1, 2023. Other important procurements we have won include renewed confidence in service travel in Oulu, Finland, renewed confidence in school transport in Fredrikshamn's municipality in Denmark, transportation of tram staff in Oslo and national transport services in Stockholm.

The volumes for the B2B segment have increased by 35% compared to the same quarter last year, and we see good opportunities to develop the B2B in line with an increasing demand for business-related travel. Flygtaxi also continues to increase as air travel increases and the number of bookings increased by over 207% compared to the same quarter last year.

During the quarter, we were the largest operator of taxi trips from Oslo Gardermoen Airport. We take it as proof that our Norgestaxi travellers appreciate our service, quality and competitive prices.

Our app travellers appreciate travelling with us. They give us a good rating for the third quarter, 4.55 on a five-point scale, and we continue to improve further. During the quarter, for example, we developed and intensified work with our affiliated transporters to ensure increased service and quality, which has already begun to yield good results. And to better serve our travellers, drivers and transporters, we have started a major technology change of taximeters in our connected cars.

An unrelenting focus on sustainability issues

Our sustainability work continues to develop positively. The number of electric cars increased by 19% during the quarter. We are also progressing in our continued work with scope 1, 2 and 3 in accordance with the Science Based Targets Initiative (SBTi). Our sustainability focus also brings with it better future opportunities for public procurement and business agreements.

A direct result of our systematic work with diversity and inclusion is a reduction in turnover of transporters by 80% in Stockholm, which contributes to a positive growth in the number of cars week after week. Another example is the 22% increase in employee NPS in Finland.

Long-term financing

Cabonline has, as previously communicated, worked during 2022 to secure its funding. An ESG bond with space of SEK 2,000 million, of which SEK 1,650 million was utilized, was issued in April at an interest rate of STIBOR 3m +9.5% and was listed on NASDAQ Stockholm on September 26.

Fast-pace into 2023

The long-term efforts to deliver better service and quality to our customers, travellers, transporters and drivers continue. Among other things, we are working intensively to establish an improved technical platform, to ensure demanded offers and good service for our brands.

Uncertainty in our environment, with high inflation, rising interest rates, increasing economic turmoil and declining confidence in the future from both businesses and consumers, may affect the demand for taxi rides. We are therefore entering a normally strong quarter with humility.

With committed drivers, transporters and employees combined with a long-term perspective, despite the external situation, we see good opportunities to strengthen our Nordic position and continue to create value for all our stakeholders.

Finally, a big thank you to all employees, drivers and transporters who are doing a fantastic job and a big thank you to all travellers who choose to travel with us.

Stockholm November 2022

Dag Kibsgaard-Petersen
President and CEO

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 November 25, 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