Interim report January – June 2019
APRIL – JUNE 2019
- Revenue amounted to MSEK 1,667 (1,616), an increase of 3%. Organically, a decline of 4.7%.
- Operating profit was MSEK -137 (11), which included a write-down of intangible assets amounting to MSEK 124 (0) regarding operations in Finland and items affecting comparability of MSEK -25 (-25).
- Adjusted EBITA was MSEK 47 (69) and the corres-ponding margin was 2.8% (4.3).
- Net loss for the period was MSEK -142 (-11)
- Earnings per share before and after dilution was SEK -4.35 (-0.65).
- The period’s cash flow was MSEK 1 (-32).
- Taxi 4x27 in Denmark and Taxi Västerås were acquired.
January – JUNE 2019
- Revenue amounted to MSEK 3,167 (3,183), a decrease of 1%. Organically, a decline of 5.3%.
- Operating profit was MSEK -128 (33), which included a write-down of intangible assets amounting to MSEK 124 (0) and items affecting comparability of MSEK -45 (-40).
- Adjusted EBITA was MSEK 109 (138) and the corres-ponding margin was 3.4 % (4.3).
- Net loss for the period was MSEK -154 (-13).
- Earnings per share before and after dilution was SEK -5.01 (-1.06).
- The period’s cash flow was MSEK -7 (25).
The Group in brief
* 2018 comparable figures have not been changed according to accounting standard IFRS 16, see Note 1
APM, see the basis for calculation and definitions on pages 25-30
During the first half of the year, we continued to operate and develop the business, while also carrying out the principal owner H.I.G Capital´s mission to prepare Cabonline for a potential change of ownership. However, in May, H.I.G. decided to postpone the exit plans, which include the option of a public listing. The decision means no change in substance, we are continuing to run our business in accordance with the established strategy and financial goals. We will in the medium term grow by more than 5% per year, which is to take place both organically and through acquisitions and have an adjusted EBITA margin of more than 4%.
During the year, we have seen a growing challenge in driver recruitment, especially in large cities. This was reflected in a negative trend in organic growth during the second quarter. Through efficient public procurement contracts, we are successful in raising the utilization rate and revenue per car. However, this was counteracted by the challenge of recruiting drivers for the cars, resulting in a lower number of cars. The driver recruitment is high up on our agenda and we have initiated a number of projects to facilitate this and to expand the recruitment base. Our growth strategy is also based on acquisitions partly to increase geographical coverage and partly to utilise the leverage in our business model. In line with this, Taxi Västerås and Taxi 4x27 in Denmark were acquired during the second quarter.
Through the acquisition of Taxi Västerås with 148 cars, we strengthen our position in the Mälardalen region. With the acquisition of Taxi 4x27, Cabonline has entered into the taxi market in Denmark. We have thus strengthened our position as the leading taxi company in the Nordics. Taxi 4x27 was founded more than 90 years ago and is today the third largest taxi company in Denmark. With Taxi 4x27, 40 employees and 240 transporters with 300 cars and 550 drivers have now become part of Cabonline.
In Finland, Kati Rajala took over as new CEO on June 1. Kati will continue the efforts to create a strong position in the Finnish market. Immediate focus is now on increasing the occupancy rate for existing drivers and recruiting new drivers.
Operations in Norway performed well during the quarter, including several new procured public contracts. Cabonline launched in the second quarter the new lifestyle brand “jip” in Trondheim, which will attract new, younger taxi consumers and strengthen the business. The response to the launch has been positive and preparations are now underway to establish “jip” in more locations.
In Sweden, a number of publicly procured contracts were won during the period. These agreements are strategically important since they provide us with stable revenue over a long period of time and lead to a more even occupancy rate and better earnings for transporters and drivers. The new travel service agreements with the traffic management in Stockholm County Council have been in effect since April 1 and offer better conditions for our riders and drivers. The agreements correspond to a total contract value, including options of close to SEK 3 billion over four years.
Together with our efforts over the past year on a stronger corporate culture, joint leadership for the entire Group and an improvement in quality of the delivery, we are now better equipped to achieve our financial goals, grow with profitability and realise our goal image: a world-class taxi company.
President and CEO
For further information, please contact:
Peter Viinapuu, CEO, tel +46766411006
Olof Fransson, CFO, tel +46705172022
This information is such that Cabonline Group Holding AB (publ) is obliged to disclose in accordance with the EU’s Market Abuse Regulation and the Swedish Securities Market Act. The information was issued for publication through the agency of the contact persons set out above on 23 August 2019, at 13:00 p.m. CEST.
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 Flygtaxi, 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 utilisation of economies of scale, efficient service and a shared infrastructure. The Group has revenue of approximately SEK 6.2 billion and performs about 50,000 journeys per day. For further information: www.cabonlinegroup.com.