Interim report January - September 2024 Cabonline Group Holding AB (publ)

JULY - SEPTEMBER        

• Revenue amounted to SEK 1,015 million (1,249 million July-September 2023), a decrease of 19%. Organically, revenue decreased by 18%.
• Adjusted EBITA amounted to SEK 22 million (54), and the corresponding margin was 2.2% (4.4).
• Operating profit amounted to SEK 12 million (31), including items affecting comparability of SEK -7 million (-17). 
• Net income for the period amounted to SEK -52 million (-35). 
• Earnings per share before and after dilution amounted to SEK -0.01 (-1.33).
• Cashflow from operating activities amounted to SEK -21 million (-6).

JANUARY – SEPTEMBER

• Revenue amounted to SEK 3,527 million (4,171 million January-September 2023), a decrease of 15%. Organically, revenue decreased by 15%.
• Adjusted EBITA amounted to SEK 110 million (175), and the corresponding margin was 3.1% (4.2).
• Operating profit amounted to SEK 86 million (134), including items affecting comparability of SEK -15 million (-19). 
• Net income for the period amounted to SEK -113 million (-67). 
• Earnings per share before and after dilution amounted to SEK -0.02 (-2.92).
• Cash flow from operating activities amounted to SEK -71 million (92).

Significant events during the reporting period

On 25 July 2024 the Board of Directors of Cabonline Group Holding AB announced that Charlotta Söderlund was appointed to President and CEO. Charlotta Söderlund has been acting in this position since 2 April 2024 and has been employed by Cabonline since 2017.

Significant events after the end of the reporting period

The board of Cabonline Group Holding AB decided on 11 October 2024 to postpone interest payments to strengthen liquidity in accordance with the terms of its issued bonds: ISIN SE0017767346 "Befintliga Obligationer/Existing Notes" and ISIN SE0020849818 "Förhöjda Obligationer/Elevated Notes".

The implementation of the new platform for booking and traffic management (iCabbi) was completed in Region Syd during the month of October.

CEO's comment

Rollout of the new platform and focus on cost control 
Market and capacity challenges continued through the third quarter of 2024. The oversupply of taxis continues to drive intense competition for customers in the consumer segment (B2C), which also was the case in the third quarter. At the same time, we still experience capacity shortages at peak hours of the day, impacting all customer segments. 

During Q3, Cabonline had a turnover of SEK 1,015 million, compared to SEK 1,249 million in the same period last year. Operating profit amounted to SEK 12 million, compared to from SEK 31 million, representing a 59% decline. Adjusted EBITDA fell by 43% compared to last year’s third quarter. The decrease in results was primarily due to reduced contract revenues resulting from lower volumes and fewer affiliated cars. 

Throughout the quarter, we continued to adapt the organization and cost base to the current situation, which will have a positive effect on cost going forward. Despite the challenges, our focus remained on quality and increased earnings for drivers and transporters. The satisfaction of our transporters is crucial to ensuring high quality and customer satisfaction. 

The implementation of our new booking and dispatch platform, iCabbi, continued during the quarter in Region Syd. After some initial delays and adjustments, the rollout is now proceeding as planned. 

Developments during the quarter 
We continued winning public tenders (B2P) in the third quarter, reflecting trust in Cabonline. Government-subsidized travel forms the foundation of our business and provides a stable and recurring revenue stream. For example, during the quarter, we won tenders for school transportation in Ale Municipality and patient transportation in Trondheim and Malvik Municipality. 

Our focus on the business travel market continued, and we signed agreements of a slightly higher value than last year. The turnover for our unique Flygtaxi concept increased by 4% compared to last year, despite a 10% decline in domestic flights in Sweden over the same period. 
In the consumer segment, travel declined by 23% compared to the same period last year. This trend has persisted over several years, with the market characterized by an oversupply of taxis and intense competition, particularly in larger cities. The B2C market is also affected by macroeconomic factors, which are contributing to hesitant demand. 

Sustainability and responsibility 
During the quarter, the results of the materiality (DMA) and gap analyses were presented to the management, board, and auditors. The process for revising the DMA analysis has begun, as well as preparation for reporting according to ESRS/CSRD. The share of electric vehicles in our fleet has increased to 36%, and the share of fossil fuel independent passenger cars (electric and biogas vehicles) has reached 63%. This exceeds our science based validated bond target of 40% for 2024 by a wide margin. 

Looking ahead 
The implementation of iCabbi, Cabonline's largest investment ever, is progressing. Year to date, we have invested SEK 29 million in the project. Five major systems are affected, as well as all employees, drivers, and customers. Once everything is in place, which is expected in the second half of 2025, we anticipate a significant reduction in manual work related to booking and dispatching. The new systems will enable more efficient matching between customer needs and car availability, better customization and communication of our offerings, and more user-friendly apps for drivers and customers. Over time, we expect to see increased profitability, improved traffic safety, and a higher level of both quality and customer satisfaction. We still have much work ahead, and significant investments remain for the rest of 2024 and most of 2025. 

I look forward with confidence to leading Cabonline through this transformation, as we build a more sustainable and competitive future. Thank you to all our colleagues, drivers, and transporters for your dedication and hard work. And a big thank you to our passengers, customers, and investors for your continued trust.

Stockholm November 2024
Charlotta Söderlund
CEO and President

For further information, please contact:
Charlotta Söderlund, CEO, phone +46 70 453 77 70, charlotta.weigel@cabonline.com
Erik Skånsberg, CFO, phone +46 79 062 38 84, erik.skansberg@cabonline.com

About Cabonline Group:
Cabonline is the leading taxi company in the Nordic region, with ~2,200 connected transporters and ~4,000 vehicles in Sweden, Norway, Finland and Denmark. Cabonline operates a series of well-known brands, such as TaxiKurir, Taxi Skåne, Umeå Taxi, Sverigetaxi, TOPCAB, Norgestaxi, Kovanen, Fixu Taxi and Flygtaxi. Through Cabonline, transporters can access attractive customer agreements, support from industry-leading technology and efficient services where shared infrastructure delivers economies of scale. In 2023, Cabonline’s revenue was approximately SEK 5.6 billion. For further information: cabonlinegroup.com/en