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Deutsche Bahn reports improved profits in H1 2016

Deutsche Bahn reports improved profits in H1 2016
Photo: DB

Deutsche Bahn has reported more improved figures for the first half of 2016, its revenues reaching EUR 20.03 billion, up nearly 0.2% year on year. Adjusted earnings before interest and taxes (EBIT) rose by EUR 117 million, or 13.1%, to EUR 1.007 billion. In long-distance rail passenger transport, passenger numbers rose by 6.4 million, or 10.6%, year on year, to a record 66.7 million.

“A year after launching an extensive restructuring process at the DB Group, we are pleased to report that we have begun to see initial financial successes,” said DB CEO Dr. Rüdiger Grube in Berlin on Wednesday.

Following the attacks in Würzburg and Ansbach, and the shooting in Munich, DB plans to invest even more than before in expanding security. “We plan to raise headcount by several hundred employees at DB’s security segment, DB Sicherheit, over the coming years, and improve their training,” said Grube. The security staff members will be deployed on trains and at stations to assist the German Federal Police with their work there. Currently, this work is carried out by some 3,700 DB security staff members and some 5,000 members of the Federal Police. To step up defense against possible terrorist attacks, DB and the German Federal Ministry of the Interior agreed last year to further expand video surveillance, investing EUR 85 million for this purpose in the coming years.

The long-distance patronage record was due in part to the new VDE 8.2 line, which opened between Erfurt and Halle/Leipzig in December 2015, and the expanded service DB was able to offer as a result. Special saver fares also helped to boost passenger numbers. In DB Regio’s rail business, transport performance fell by 3.3% in the first half of 2016 due to lost tenders. DB Cargo, Deutsche Bahn’s rail freight segment, is currently being realigned. Its transport performance fell by 2.2%.

International subsidiary DB Arriva continued to perform well, with patronage in the first half of 2016 up 4.9% year on year, due in part to DB Arriva’s recent successful bid for the Northern Rail franchise in the UK, which it began operating on April 1. In all, more than 854 million passengers used DB Arriva’s services in 14 European countries from January to June.

Traffic on the rail network in Germany rose by 2.6%, from 517.9 million train-path kilometers to 531.4 million. Non-DB rail companies accounted for 29.8%, up from 27.3%. Such developments testify to a functioning competitive rail market.

At DB Schenker, developments were primarily positive. Land transport by truck saw a slight drop of 0.3% in the number of consignments, while air freight rose by 0.9%. Ocean freight grew 2.4%, and contract logistics took a major step forward once again, with revenues up 7.8%.

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