Year-end report 2018 Cabonline Group Holding AB (publ)
Fourth quarter 2018
- Revenue amounted to MSEK 1,654 (1,624), increase of 2% versus last year
- Operating profit was MSEK -148 (27), which includes an impairment loss of MSEK 152 on goodwill pertaining to the Finnish operations and items affecting comparability of MSEK -15 (-17)
- EBITA before items affecting comparability was MSEK 53 (74) and the corresponding margin was 3.2% (4.6)
- The net income for the period was MSEK -178 (0)
- Result per share before and after dilution was SEK -53.41 (-3.31)
- The period’s cash flow was MSEK 21 (46)
- A new public agreement has been concluded with Stockholm County Council for the period 2019–2022 (with an option of a one-year extension) and another one in Oslo for 2019–2020 (with an option of a two-year extension)
January – December 2018
- Revenue amounted to MSEK 6,217 (5,968), increase of 4% versus last year
- Operating profit amounted to MSEK -121 (51), which includes an impairment loss of MSEK 152 on goodwill pertaining to the Finnish operations and items affecting comparability of MSEK -77 (-51)
- EBITA before items affecting comparability amounted to MSEK 239 (218) and the corresponding margin to 3.8% (3.7)
- The net income for the period was MSEK -214 (-73)
- Result per share before and after dilution was SEK-73.59 (-34.02)
- The period’s cash flow was MSEK -6 (-20)
- Peter Viinapuu was appointed President and CEO as of January
- The Board of Directors proposes that no dividend be paid
The Group in brief*
*See page 24 for definitions.
Important steps towards the objective - “a world-class taxi company”
Cabonline is the leading player in the Nordic taxi market with more than 5,300 taxis that are driven under one of our brands in Sweden, Norway and Finland. In Sweden we have a market share of approximately 26% of the number of registered taxis and the corresponding figure in the Nordic region is about 13%. These market shares are a good indicator of the continued highly favorable growth potential that Cabonline has in all the Nordic countries.
During 2018, we took some important steps towards our objective – “a world-class taxi company”. We formulated a new business plan and strategy to additionally strengthen our position and to facilitate continued growth in the Nordic market. This work included a major focus on shaping an efficient and scalable platform and organization. We also implemented target-oriented quality efforts to make us an even more attractive business partner for taxi firms, drivers and naturally also for our customers.
These efforts have already started to generate measurable effects for our business. During the year, we introduced a systematic work method for monitoring the customers´ experience of the actual taxi journey and to assess both the condition of the taxi and the driver´s way of interacting with the passengers and of driving the car. We see that these performance figures improved, step by step, in 2018 and at year-end we had a score of 4.4 on a scale of 1–5, an improvement of about 5% during the year. During 2018, we won a number of important public-sector procurements in both Sweden and Norway. We did not win these procurements solely on the basis of price; the procuring authorities evaluated the tenders based on a combination of price and quality. As a result of our achieving the highest quality assessment among the incoming tenders, we also managed to raise price levels compared with the past, which benefits our taxi firms and drivers, and simultaneously enhances the potential for ensuring delivery at favorable quality. Most of these public assignments extend for between three and four years and thus constitute a solid and stable foundation for our revenues moving forward. The balance between public assignments and private customers is a key component of our strategy. This keeps the utilization rate for the vehicles at a high level and we thus become an attractive business partner for taxi firms which, in turn, leads to favorable availability of taxis for our customers.
During economic booms, we experience general challenges in driver recruitment, which has become specifically noticeable in Norway and Finland. We have made concerted efforts and implemented a series of changes in both actual recruitment and in providing more efficient training. We can now see that these initiatives have begun to have an impact and the trend has stabilized and started to turn upwards.
In terms of earnings 2018 operating profit amounted to MSEK -121 (51). Operating profit includes a write down of MSEK -152 and items affecting comparability of MSEK -77 (-51). EBITA before items affecting comparability was favorable at MSEK 239 – a year-on-year increase of 10%.
For me, it was an enjoyable and intensive first year as newly appointed President and CEO, as I’m sure it also was for all employees, taxi firms and drivers in Cabonline’s operations. The rate of change is high and we are witnessing a major shift throughout the taxi industry – which is creating great opportunities and new challenges. In addition, on assignment from the principal owner H.I.G. Capital, as communicated in the interim report on the second quarter, we worked to prepare the Group for a possible ownership change, with a listing on Nasdaq Stockholm as one of the alternatives.
In summary, I can state that we have jointly created the conditions for an efficient organization with a scalable business platform for the future. These initiatives and programs have given us an excellent foundation for continued profitable growth.
I am therefore looking to the future with great confidence.
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. The information was issued for publication through the agency of the contact persons set out above on 27 February 2019, at 4:00 p.m. CET.
Cabonline is the leading taxi company in the Nordic region with 2,700 connected taxi firms and approximately 5,300 vehicles in Sweden, Norway and Finland. Cabonline contains a series of well-known brands, such as TaxiKurir, Norgestaxi, TOPCAB, Kovanen, Taxi Skåne, Taxi Väst, Umeå Taxi and Sverigetaxi. 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.cabonline.com