Interim report January – September 2019

JULY – SEPTEMBER 2019

• Revenue amounted to MSEK 1,534 (1,380), an increase of 11%. Organically, revenue increased 0.6%.
• Operating loss was MSEK -3 (-7). This figure includes items affecting comparability of MSEK -20 (-22).
• Adjusted EBITA was MSEK 53 (48) and the corresponding margin was 3.4% (3.5).
• Net loss for the period was MSEK -26 (-23).
• Earnings per share before and after dilution was SEK -1.07 (-0.97).
• Cash flow for the period was MSEK -3 (-52).
• Johan Ryrberg assumed as acting CFO for Cabonline Group on 8 October.

JANUARY – SEPTEMBER 2019

• Revenue amounted to MSEK 4,701 (4,563), an increase of 3%. Organically, revenue fell 3.5%.
• Operating loss was MSEK -131 (profit: 26). This figure includes an impairment of intangible assets of MSEK 124 (0) and items affecting comparability of MSEK -64 (-61).
• Adjusted EBITA was MSEK 161 (186) and the corres-ponding margin was 3.4% (4.1).
• Net loss for the period was MSEK -179 (-36).
• Earnings per share before and after dilution was SEK -6.08 (-2.04).
• Cash flow for the period was MSEK -11 (-27).
• Taxi 4x27 in Denmark and Taxi Västerås were acquired.

The Group in brief

*APM, see the basis for calculation and definitions on pages 26-31.
* 2018 comparable figures have not been changed according to accounting standard IFRS 16, see Note 1

CEO´s comments

Revenues for the quarter increased by 11% to SEK 1,534 million (1,380), and the organic growth amounted to 0.6%, compared to the same period previous year. We are pleased that the previous negative organic growth has now reversed in the third quarter and shows a slight increase. Adjusted EBITA increased by 10% to SEK 53 million (48) and the adjusted EBITA margin was 3.4% (3.5). Our financial targets are, in the medium term, to grow by more than 5% annually through organic growth and acquisitions with an adjusted EBITA margin of more than 4%.

In the Finnish operation, the change process is starting to generate results, organically revenues increased by 6.6% in the quarter. Cabonline has been successful in attracting and recruiting new transporters and drivers. The transition from self-owned cars to more transporter-owned cars has gone well - in just over a year we have gone from zero to a situation where one third of the cars in Finland are owned by trans-porters. This is an important change for us and adaptation to our business model, which is characterized by, among other things, low capital tied up and great scalability.

In Norway, Cabonline's lifestyle brand jip, which was previously only available in Trondheim, has now been launched in Oslo as well. In Trondheim, the number of jip journeys continues to increase and now more than 10 000 trips are completed. The new concept has had a strong impact in the media, and we have received a solid support from the Samferdselsdepartementet and Forbrukerrådet.

In Denmark, Cabonline has established itself as a player in the entire Danish taxi market. During the period, Cabonline won the first contract here, which refers to service travel for Danpilot (the state part operation) in North Jutland.

In Sweden, Cabonline received renewed confidence in several public tenders in the regions of West, Örebro and Malmö. The new agreements run from the summer of 2020 except in Malmö where our contracts start from October 2019.

The shortage of drivers remains one of our biggest largest challenges in all markets and we have worked during the period to mobilize support for our transporters in their efforts to recruit new drivers.

We are also focusing on maintaining and enhancing the quality of our services and customer offerings. TaxiKurir and Sverigetaxi are today certified according to ISO 9001 and ISO 14001 and Norgestaxi was certified during the period. This means further steps in our efforts to maintain a high and stable level of quality based on established standards.

We are now increasing the pace of our change work. During the summer and early autumn, we reviewed the entire Group's operations to identify key areas of improvement are. One of these areas concerns IT. There are significant potentials in upgrading to the next generation IT platform for booking and traffic management.

With an upgraded Group-wide IT platform, we will conduct our operational operations more efficiently. This also enables faster and smoother integration of acquired taxi operations while enhancing the quality of delivery to customers. We have therefore started preparing for this change and are planning for an implementation over the next two years. The restructuring will include both investments and restructuring costs. In parallel, we expect positive effects on profitability and quality of delivery, while at the same time creating the conditions for a higher rate of our acquisition driven growth.

A strategically important part of our change process is also a new brand strategy. The project has been initiated, and the ambition is to streamline communication with the customer and contribute to an attractive, uniform and clear image of the company in all markets.

The financial statements were finalized earlier than anticipated and therefore the Board decided to release the interim report at an earlier date.  

Peter Viinapuu
President and CEO
 

For further information, please contact:
Peter Viinapuu, CEO, tel +46766411006
Johan Ryrberg, acting CFO, tel + 46705387670

This information is such that Cabonline Group Holding AB (publ) is obliged to disclose in accordance with the EU’s Market Abuse Regulation. The information was issued for publication through the agency of the contact persons set out above on 4 November 2019, at 08:00 a.m. CET.

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 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 utilization 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.

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