STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
Nobina AB (STO:NOBINA)
THE HALF-YEAR PERIOD 1 MARCH–31 AUGUST 2016
• Net sales of SEK 4,370 million (3,977), an increase of 9.9 per cent.
• Operating profit increased to SEK 263 million (39)1).
• Profit after tax of SEK 149 million (–104), and earnings per share of SEK 1.68 (–1.43)1).
• The cash flow from operations was SEK 622 million (319).
• Cash flow for the period was SEK –141 million (–129). Cash flow for the period included disbursement of SEK 230 million (0)1) dividend for the preceding year.
IMPORTANT EVENTS IN THE SECOND QUARTER
• Well-implemented traffic starts in Sweden and Finland.
• Nobina won a tender for traffic in Oslo worth SEK 150 million over a three-year contract period.
• Nobina won a tender for traffic in Lund Väster (West) worth SEK 400 million over a four-year contract period.
• The share of Nobina’s total bus fleet operating on renewable fuel increased from 50 per cent to 55 per cent, and to 75 per cent in Sweden.
IMPORTANT EVENTS SINCE THE END OF THE QUARTER
• CEO Ragnar Norbäck announced his decision to retire in October 2017. Accordingly, the board has commenced work on recruiting a new CEO.
• Nobina’s contract regarding bus services in Norrtälje was extended by two years until June 2021.
Nobina delivered continued strong results in the second quarter, driven primarily by increased revenues from extra traffic as well as positive development of existing contracts. In addition, Nobina has carried out cost-efficient traffic starts and contract closures in Sweden and Finland. The contracts won in Lund and Oslo during the quarter, as well as agreements signed in Östergötland and Borås, compensate for the traffic contracts that are expiring. It is, of course, positive that we are improving our margin despite a younger contract portfolio, with its attendant negative short-term impact on earnings. Furthermore, I note that Nobina’s focus on innovation through Nobina Technology has attracted increased attention from PTAs and partners. It is also pleasing that our employees are being invited to participate in a number of forums in order to contribute to the development of the public transport industry. Another positive trend is the improved profitability of our public transport industry competitors, albeit from low levels. I have informed the board that I have decided to retire next autumn, after 13 years as CEO of the Nobina Group. These have been eventful years and there is much to be pleased with. I am particularly proud of the skills and commitment of our employees. Last year’s successful IPO has laid the foundation for an even more successful company. Thus, conditions are favourable for a continued positive development.
President and CEO
The information comprises such as Nobina AB (publ) is obliged to publicly disclose pursuant to the EU Market Abuse Regulation and the Securities Market Act. Through the above contact person, the information was submitted for publication at 8.00 am CET on 28 September 2016.
Nobina is the largest and most experienced public bus transport service provider in the Nordic region. The Company’s expertise in prospecting, tendering and active management of public bus transport contracts in combination with long-term delivery quality makes Nobina an industry leader in terms of profitability, development and initiatives that promote a healthier industry. Every day, Nobina ensures that more than one million people arrive at work, school or other activities by delivering contracted public bus transport services in Sweden, Norway, Finland and Denmark. In addition, Nobina offers express bus services under the Swebus brand in the Swedish market. The Company has sales in excess of SEK 8 billion (2015/16), approximately 10,000 employees, and is headquartered in Solna, Stockholm. For more information, see Nobina’s website: www.nobina.com
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