VR Group: Growth in Logistics transport volumes

• VR Group's second quarter Earnings Before Interest, Taxes and Amortization (EBITA) improved significantly
• Rail freight tonne kilometres grew by 7.6 per cent
• The average price of train tickets fell slightly

Rail freight volumes grew in the second quarter by 7.6 per cent and amounted to 2427 million tonne kilometres. The reason for the higher transport volume is the growth in transports in the metal and chemical industry. International rail freight volumes grew by 13.2 per cent. The turnover of Rail Logistics was 86.4 and of Road Logistics 27.0 million euros.

The total VR Logistics transport volumes grew over the reference period by 3.1 per cent. Transported tonnes amounted to 10.7 (10.4) million. The Earnings Before Interest and Taxes (EBIT) grew significantly from last year and amounted to 9.8 million euros (4.1).

The demand for logistics services is strongly dependent on domestic industrial output and economic developments in the East. Transport volumes developed well in the second quarter. Domestic and international freight volumes grew.

Average price of train tickets fell slightly

Special offer campaigns for long-distance services and cheaper advance tickets boosted sales. In general, the average price of domestic long-distance trips fell slightly in the second quarter. The general economic climate and the situation in Russia contributed to the drop in passenger volumes. Traintrips in the quarter amounted to 16.6 (16.9) million.

The number of trips grew over the previous year by 4.1 per cent: there was 17.5 per cent growth for road services trips and a 1.4 per cent decrease for rail services. The number of trips made on Allegro decreased by 14.4 per cent due to a lower number of Russian travelling to Finland with the rouble’s rate falling.

Earnings Before Interest and Taxes (EBIT) of passenger services amounted to 4.9 million and saw a slight increase over the reference period (4.6). The share of self-service channels in long-distance ticket sale grew and tickets sold at station ticket offices amounted to just 24.1 per cent in June.

Infrastructure Engineering turnover fell slightly

The Q2 turnover of Infrastructure Engineering fell over the reference period by 7.1 per cent and amounted to 78.1 (84.1) million. The order book remained strong. The quarter's operating profit was 2.3 (1.7) million euros.

Improvement in operating profit

VR Group’s turnover in the second quarter amounted to 343.0 (356.6) million euros. Comparable turnover decreased by 2.1 per cent. However, comparable Earnings Before Interest, Taxes and Amortization (EBITA) was significantly better than in the previous year and amounted to 18.4 (3.6) million. The comparable Earnings Before Interest and Taxes (EBIT) for the entire year is expected to remain at last year's level and turnover is expected to decrease slightly.