Scandlines generated solid 2019 results despite traffic decline
Scandlines generated stable and solid financial results in 2019 despite challenging market conditions affecting traffic volumes, the company said in its release. Operational efficiency was strong, and the group’s two ferry routes completed more than 41,500 departures and transported 7.2 million passengers between Germany and Denmark, while Scandlines continued to build a more competitive business through investing in green initiatives and further strengthening the group’s financing.
Scandlines reported stable group revenue of EUR 475 (2018: EUR 477 million) in 2019 due to soft economic indicators in Sweden and Germany resulting in a slight drop in traffic volume and relatively stable BorderShop activity. Revenue from the two ferry routes was unchanged at EUR 352 million despite a moderate decline across traffic segments following years of growth in the freight business in particular. BorderShop revenue saw a minor decline to EUR 124 million (2018: EUR 125 million) as leisure travel declined slightly and fewer Swedes visited the group’s BorderShops due to the weak Swedish currency.
Group profitability remained steady in 2019 as Scandlines generated profit from ordinary activities (recurring EBITDA) of EUR 188 million (2018: EUR 191 million) corresponding to an unchanged recurring EBITDA margin of 40 percent. The solid profitability level was secured mainly by means of cost control measures compensating for the lower traffic volumes during the year.
The outbreak of COVID-19 is expected to have a significant negative impact on traffic figures and financial performance for the year. Efforts are made to alleviate the impact of these negative external effects through cost control measures and efficiency enhancements, but due to the high degree of uncertainty and very low visibility, management is currently not in a position to provide precise financial guidance for 2020.
About Scandlines
Scandlines stands as a symbol of a historical and close cooperation between Denmark and Germany. Scandlines operates two ferry routes with high capacity and frequency as well as with a green vision for the future. The core business is to provide an efficient and reliable transport service for both passengers and freight customers. The main focus for all activities in Scandlines is to create value for our customers on board the ferries as well as in our shops. With more than 41,500 departures on 8 ferries, in 2019 Scandlines transported 7.2 million passengers, 1.7 million cars and around 0.7 million freight units on the routes Puttgarden-Rødby and Rostock-Gedser. Scandlines had 1,533 full time employees (FTE) and revenue of EUR 475 million.