Vy 1st interim period 2024: A tough start to the year

The operating profit for Vygruppen in the first quarter is NOK -166 million, NOK 26 million weaker than the same period last year. Although the tough operating conditions weakened Vy's revenues and operating profit, the number of passengers has had a slight increase compared to the same period last year.

"Our most important task is to improve our delivery, so that our many customers on trains, buses and freight get the offer they deserve and become more satisfied," says Gro Bakstad.

Damage and faults on the trains created congestion and low punctuality

In the first four months of the year, Vy has had an increase in the number of journeys by passenger train in Norway by 1.1 per cent compared to the same period last year. We expect further growth ahead. Punctuality ended at 85 percent, at the same level aslast year, but lower than the target of 91 percent.

This winter we experienced an unusual combination of severe cold and a lot of snow. Snow and ice damaged the trainsand exceeded the repair capacity in the train workshops.

"During the winter months our aim was to uphold the route offer in spite of severe weather conditions, but in the end the need for maintenance and repairs of the trains increased more than workshop capacity. As a result,the trains service was reduced, which again led to delays and overcrowded trains. We are very sorryfor the negativeeffects this had on our customers, and we are doing everything we can to get all the trains back in service and to prepare better for next winter," says Bakstad.

Weaker profitability in bus tender contracts

Vy Buss is responsible for regular services on tenders or contracts with county municipalities in Norway and Sweden, in addition to commercial bus routes. Passengers are now on their way back, and there has been a growth in the number of journeys by bus from the same period last year of 2 per cent.

"Difficult weather and driving conditions this winter have resulted in more accidents and high repair costs, as well as higher level of sickness absence and therefore increased use of overtime," says Bakstad.

Poor framework conditions and closed lines weaken the freight train business 

In addition to difficult driving conditions due to extreme weather, rail freight has been negatively affected by closed railway sections in Gudbrandsdalen, on the Ore Line (Ofotbanen) and the Bergen Line. This has resulted in lower volumes than usual and further weakened profitability in the entire freight industry.

Our freight business, CargoNet, has been extremely hard hit by long-term closures on both the Dovre and Ofotenlines.

For CargoNet, the main goal going forward is to re-establish the service after the reopening of the Randklev bridge and the Dovre Line in May. Long-term profitability is created through our own improvements, in addition to better and more predictable framework conditions for rail freight.

Increased demand for tourism products

Vy delivers tourism products in the form of public-based tours with fjord, mountain and cultural experiences to Norwegian customers, tourists and international tour operators. So far this year, demand from Norwegian and foreign tourists has increased, and Fjord Tours Group and the Flåm Railway are experiencing a positive travel trend.

"It is motivating to experience a significant improvement in demand after a tough period during the pandemic. The number of journeys on the Flåm Railway in the first four months of the year has increased by 10 per cent compared to last year," Bakstad concludes.