DFDS stung by diminishing passenger numbers

2020-11-14T14:56:02+00:00 November 14th, 2020|Finance|

DFDS reported a revenue decrease of 20% or DKK0.9 bill to DKK3.6 bill for the third quarter of this year.

EBITDA before special items decreased 29% or DKK349 mill to DKK846 mill.

EBITDA for freight ferry and logistics activities was DKK126 mill higher than 3Q19.

The ongoing adaptation of operations and the business structure to market conditions post Covid-19 has been instrumental in achieving the increase. Besides higher margins, some activities also succeeded in raising volumes, the company said.

However, the continued tightening of travel restrictions during 3Q20 lowered the passenger result below expectations with 70% less passengers travelling on the company’s ferries.

As a result, EBITDA for passenger services was DKK445 mill below the 2019 level.

This includes passenger services in the three business units that provide the services – Passenger, Channel and Baltic Sea.

On 23rd October, 2020, the outlook for this year was raised, as freight volumes developed more positively than expected during and after the third quarter.

EBITDA before special items is expected to be DKK2.5-2.7 bill in 2020 up from the previous forecast DKK2.2-2.5 bill included in the 2Q20 report.

Uncertainty remains high and the outlook and its assumptions can still change significantly during the rest of the year, DFDS said.

”Our freight network is as expected proving to be very resilient. We continue to adapt operations to market changes and Brexit. I am pleased to see that all the hard work of our people has helped position us well for the future,” said CEO, Torben Carlsen (pictured).