Vy 1st interim period 2023: More travellers improve the operating profit

– The number of train and bus commuters is approaching the levels in the period before the pandemic, and we have experienced a large growth in the number of express bus travels. But operational challenges in goods and increased prices for important input factors mean that the costs unfortunately also increase. In sum this gives Vy an operating profit in line with expectations, says Gro Bakstad, CEO of Vy.

Operating profit for Vy for the first four months of the year was NOK -140 million, an improvement of NOK 97 million from the same period last year (NOK -237 million). If we take into account the corona support we received for upholding the train offer in Norway in the first four months of last year, the profit improvement is NOK 371 million.

Good travel figures

The number of travels has increased gradually after the pandemic. In the first four months of the year, the number of travels with our trains in Norway are 93 per cent of the normal year 2019. For Vy's express buses, the number of travels has also increased significantly, and travel activity has in periods and on some routes been higher than in the same period in 2019.

– We are pleased that we are now back to more normal levels of travel activity. For the express buses, it is primarily holiday and leisure travel that is increasing, and now that we are entering the high season for holiday travel, we expect more train travellers and further growth among express bus customers, says Gro Bakstad.

Low punctuality on trains leads to bad customer experiences

In Norway, Vy's trains had a total punctuality of 85 per cent in the first quarter of 2023. This is three percentage points lower than the same period last year, and five percentage points below the target of 90 per cent. Challenges with the infrastructure and a long-term closure of the Follobanen are the main reasons for the poor punctuality.

– Transport is an important part of the lives of many of our customers, and they depend on the trains arriving and departing according to plan. It is therefore deeply regrettable that so many of the trains are delayed, says Bakstad.

Vy will operate all train traffic in Eastern Norway

On 3 March, the Norwegian Railway Directorate announced the decision to allocate both Eastern Norway 1 and 2 to Vy. Final negotiations are now underway on the new agreements, starting in mid-December.

– We are very happy that the Norwegian Railway Directorate recognise the great benefits of us being allowed to operate train traffic in the whole of Eastern Norway for the next ten years. This ensures customers a better and more comprehensive train offer at a more reasonable cost for society, says Bakstad.

Promising figures from the tourism industry

– Tourism has been severely affected by the pandemic, but we now see a significant improvement in demand. On the beautiful Flåm Railway, the number of journeys so far this year has increased by 78 per cent compared to last year and is at 86 per cent of the level for 2019. Advance bookings for the summer look promising, says Bakstad.

Vy's investment in tourism is based on public transport-based round trips with fjord, mountain and cultural experiences for Norwegian customers, tourists and international tour operators.

Challenges for CargoNet

Operational problems weakened the result in CargoNet, and punctuality ended at 91 per cent (arrival terminal within15 minutes), which is somewhat weaker than the target of 92 per cent. At the same time, more cargo owners want to prioritize goods on rail rather than road.

– It is inspiring to see that the demand for the transport of goods by rail is increasing and that we are therefore transporting more goods now than in the same period last year. But we could have transported more, if, among other things, harsh winter conditions, reconstruction at the Alnabru freight terminal and challenges with our old trains and wagons had not prevented us, says Bakstad.