Transdev Financial impacts of the Covid-19 crisis
The Group priority is first and foremost the safety, health and well-being of all our employees and our customers, who – worldwide – place their trust in us to travel safely.
Transdev teams are committed in the field to organizing vital transportation missions, ensuring its continuous usual transport missions for those who still have to move everyday and to adapting them to the circumstances, notably by:
- Delivering the level of service required by its Clients in a safely manner,
- Performing medical transportation crews in particular in the Netherlands with our Witte Kruisoperations and Transdev Healthcare in France, which both ensure crucial transportation services for both sick people and health personnel,
- Dedicating or adapting Transportation On Demand services to better cater for the mobility of health personnel, or to specifically serve hospitals and clinics in a number of networks in France,
- Ensuring critical Covid-19 patients’ transfers from hospitals to high-speed medical trains, directed to regional hospitals with open Intensive Care Unit capacity in France,
- Facilitating at CDG Airport in Paris the safe and speedy unloading of emergency face mask shipments ordered abroad,
- Distributing hot meals, transporting healthcare workers, taking sick people to be tested in 12 US cities,
- and many more such heartwarming initiatives around the world.
Financial impacts of the crisis
The public health measures in force in the 17 countries where the Group provides services is affecting our activities to varying degrees.
Ridership is at an historical low level (between 5 and 10% in some countries) and is likely to remain lower with the restart due to:
- A progressive lockdown exit where activities are resuming slowly,
- A lower global economic activity,
- New mobility behaviors,
- The risk of fear of using public transport in the coming months.
Public Transport also faces increased costs due to sanitary measures: masks when required, social distancing reducing capacity offer whilst adapting as much as possible to the level of the demand, disinfection (….).
Retaining and strengthening the trust of its passengers in public transportation is a priority.This sanitary challenge for public transport is a key challenge for all countries. Millions of people depend on us to go to work every day and we are committed to providing them with clean and healthy public transport solutions.This is the first step to ensure their trust by adapting almost daily to the new sanitary rules, but also taking into account the daily demand.
With all the countries exiting from the lockdown, the Group is actively preparing the critical steps for the relaunch of its activities, launching two phased projects for the ramp up and for the medium term.
This context at the same time has prompted the Group to adopt measures to reduce the negative impact of the current crisis and to ensure that Transdev will remain able to deliver the continuity of public transport that is essential to governments, local communities and our millions of passengers.
The main measures include:
- Continuity plan to ensure the health and safety of our employees and passengers alike, providing the best service,
- On-going negotiations with the public authorities to secure the continuity of the service,
- Using job retention arrangements in countries in which such measures are available,
- Taking a more selective approach to the 2020 CAPEX program while preparing the Group for the post-crisis recovery,
- Improve our cost base,
- Not distribution of dividends in 2020.
With a net debt/EBITDA ratio of 2.44x as per our financial covenant definition at the end of 2019, the disposal of our BtoC activities in 2019 and early March 2020, a debt maturity schedule that is well spread out over the next seven years, undrawn credit line, treasury available and the mitigation measures taken and balanced negotiations outcomes with our Clients, Transdev’s financial position should enable it to get through this period without liquidity problems. However, since the duration of the public health crisis and its impact on the global economy are not yet known, the precise consequences and impact on business levels and results are still hard to assess at the moment but we can anticipate that they will have a significant negative effect on the Group’s financial performance and results of operations for 2020.
These are challenging time for all of us, for our teams, for our families, for our customers, for our clients but it is also an opportunity to show our ability to react, to act, to adapt to this exceptional situation, to design new solutions and new way of working and show our commitment to our customers and clients.
Thierry Mallet, Chairman and Chief Executive Officer
2019 Financial results
The performance achieved during the year 2019 validates Transdev’s strategic reorientation on its core business activities with local authorities and businesses.
The year was marked by a 6.7% increase in revenue at €7.416 billion, a current operating income of €145 million and a net income group share of €45.7 million.
The support of its two shareholders, Caisse des Dépôts Group and the Rethmann Group, as well as the establishment of a new Executive Committee, have helped to accelerate the company's transformation.
2019 Financial reportDownload
Update, April 3, 2020 – Sanitary Crisis Covid-19
The development of the pandemic has led to confinement measures in most of Transdev’s operating zones as of mid-March 2020.
In cooperation with local and national health and sanitary officials, the Group is dedicated to ensuring continued transportation across the globe, in order to guarantee safe and reliable mobility services while protecting our staff and our passengers.
In this context of crisis, the general meeting of shareholders decided to not distribute any dividends in 2020.