Multi-million profit start sets DSB on track for 2014

Rail operator reports strong first quarter results

DSB has reported pre-tax profits of 144 million kroner for the first quarter of 2014, representing a 140 million improvement on the same period last year. This follows a healthy end to 2013 for the national rail operator.

“The positive development in the profit before tax is a result of the implemented efficiency enhancements combined with an increase in passenger revenues,” the review of the company’s first quarter report states.

“Also reduced net financials – i.e as a consequence of an improved result of operations in Rejsekort A/S and fewer interest-bearing liabilities – contributed to this development.”

Efficiency means job cuts
The ‘efficiency enhancements’ in question include  extensive job cuts. Some 881 employees were laid off in 2013, and the company plans further cuts in 2014.

"The board has a strong focus on the two overall objectives within ‘A healthy DSB’,” Peter Schütze, the chairman of DSB, stated in his comments accompanying the Q1 report. “At year-end 2014, EBITDA of 2.65 billion kroner and 1,000 fewer employees in the Danish activities.”

Future focus
Since the EBITDA amounted to 746 million kroner for the first quarter, the company is on target to attain its EBITDA target.

While DSB’s recent focus has been on economising, the future aim is to improve other aspects of the business.

“While the issue so far has been restoring DSB’s economy, the next stop on our strategic journey will be continuing to focus on the core product while at the same time improving productivity by 2-3 percent every year,” the report states.