"We achieved our financial targets in 2017 but still have work to do to improve quality and punctuality," says CEO Richard Lutz • DB Schenker posts record numbers
(Berlin, March 22, 2018) With record revenues, higher profits and even more passengers on its German long-distance trains, Deutsche Bahn achieved its financial targets in 2017. "We kept our word and we delivered. But this good showing cannot hide the fact that we still have work to do to improve quality and punctuality," said Chairman of the Management Board and CEO of Deutsche Bahn AG, Dr. Richard Lutz, today in Berlin at DB Group's Annual Results Press Conference.
Rail passenger numbers at DB Long-Distance were up by 3.2 million compared with 2016. Over 142 million passengers traveled in DB Long-Distance trains, a 2.3% increase year on year (up from 139 million in 2016). Not only did the third passenger record in a row set a new benchmark, it was also "good news for climate protection," said Lutz. The number of passengers who took DB trains and buses throughout Europe also rose significantly, by 5.3%, to nearly 4.7 billion.
Rail volume sold (excluding DB Arriva) increased as a whole. Volume sold at DB Regional was up 2.6%, to 41.9 billion passenger kilometer (pkm). DB Regional performed well against its competitors in 2017, winning 74% of the newly awarded volume in the German regional transport market. DB Long-Distance saw its volume sold rise 2.6% to 40.5 billion pkm.
DB Group's adjusted revenues climbed 5.2% to EUR 42.7 billion. Adjusted EBIT rose 10.6% to EUR 2.15 billion. In 2018, DB Group expects to generate revenues of some EUR 44 billion and an adjusted EBIT of at least EUR 2.2 billion. DB Long-Distance and DB Netze Track as well as DB Group's international business units were the primary drivers of DB Group's financial development in 2017. DB Schenker generated record revenues of EUR 16.4 billion, while revenues at DB Arriva totaled EUR 5.3 billion.
DB Group increased its gross capital expenditures by EUR 954 million, or 10.0%, to EUR 10.4 billion in 2017. At EUR 18.6 billion, net financial debt as of December 31, 2017 was around EUR 1 billion higher than at the end of 2016. This increase in net financial debt was due among others to an increase in the funds needed for capital expenditures, like for new ICE 4 trains.
Punctuality situation center
DB Group remains committed to its punctuality targets for 2018 and will continue to aim for a punctuality of 82% at DB Long-Distance. It will be stepping up its efforts for better quality and service, with measures that include enhancing Railway of the Future (Zukunft Bahn), its multi-year quality improvement program. After DB Group's positive experience with the construction situation center it established to improve construction management, DB Group will be setting up an additional situation center to make similar improvements to punctuality.
Train kilometer on track infrastructure rose slightly, by 0.5%. Never before had so many trains traveled on Germany's rail network. Non-Group train operating companies increased their share to 30.9%. DB Group is working with the sector to continue to expand rail network capacity, and its Digital Rail for Germany program will play a key role here.
Logistics and freight transport
DB Schenker experienced growth in all segments 2017. European land transport was up 0.8% (shipments), contract logistics grew 4.8% (revenues), and air and ocean freight volumes saw the largest gains, at 10.3% and 8.1% respectively.
Despite a 2.3% drop in volume sold in 2017, the DB Management Board is confident that DB Cargo will be back on track to grow again in the future. DB Group intends to purchase up to 100 more new multi-system locomotives and some 4,000 additional modern freight cars by 2022. The German Federal Government's new Rail Freight Master Plan and the associated reduction in track access charges are important steps in making rail freight transport more competitive.