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Keolis’ revenue exceeds 5 billion euros in 2013

Keolis’ revenue exceeds 5 billion euros in 2013

March 2014

In 2013, revenue reached 5.1 billion euros, up 2.2% on 2012. Profit remains stable, in a tough economic environment. Intense mobilisation on a very substantial pipeline of projects.

2013: a year of transition and consolidation

In 2013, Keolis focused on gearing up for future development. The company’s ambition is to reach €7 billion in revenue in 2017.

Commercial performance

Keolis won a new transit contract in Las Vegas (revenue of €185 million over 5 years) and renewed a major bus contract in Stockholm (€920 million over 8 years). In Gothenburg, Sweden’s second largest region, Keolis became the number one bus operator with a fleet running exclusively on alternative fuels.

Keolis successfully launched and extended several operations in 2013:

  • Extension of the tramway in Bergen, Norway
  • Start of a new bus and train contract in the Twente region, Netherlands
  • Launch of a new train operation in Bielefeld, Germany 

In terms of business development, the teams were mobilised on many projects, since some 2012 bids were postponed to 2013-2014. This was the case for the Boston commuter rail contract that Keolis won in January 2014, and for four rail franchises in the UK, for which Keolis was shortlisted.

In France, Keolis remains the leader of urban networks and won 99% of the contracts that were up for renewal. In addition, new operations were launched:

  • A light rail service in Tours
  • Extension of a light rail and a metro line in Lyon
  • BRT (Bus Rapid Transit) services in Metz and Strasbourg

Strengthening of the organisational structure

Keolis reinforced its international teams with the creation of four regions: Continental Europe, United Kingdom, North America, Australia/New Zealand. These are now fully effective and focus on delivering excellent performance in existing operations as well as boosting international business development.

The teams based in high potential emerging markets, such as India, the Middle East and China, remain under the direct management of head office.

At the same time, the senior executive team at the Group level was reinforced by the recruitment of two senior Vice Presidents heading respectively the Marketing, Innovation & Services and Rail & Operations divisions. 

2013 financial results

Keolis’ 2013 revenue reached 5.1 billion euros, up 2.2% on 2012. Organic growth was 2.9%.

The profitability (Ebitda) at €280 million is down by 2.5%. This was expected and is linked to an unfavourable exchange rate, a lower profitability of some contract extensions and the challenging economic environment. Net profit is stable.  

Keolis’ financial structure remains strong and, thanks to a sound management of its investments, the company reports a financial leverage ratio compared to Ebitda of 1.71x at the end of 2013.

With a stable shareholding structure and a solid governance, Keolis is on track to achieve its target of €7 billion in revenue in 2017.

Outlook for 2014 

The priority in 2014 will be to successfully launch new operations. The mobilisation in Boston has already started to ensure a smooth start on July 1, 2014. This contract, the most important one to be managed by a private operator in the USA, is a very significant achievement for Keolis. It will generate revenue of €243 million per year, during eight years.

Two light rail launches are also planned: in Gold Coast, Australia, with operations starting in June 2014, (18-year contract), and the extension of the Nottingham network (2 additional lines, 22.5-year contract).

Keolis teams in Hyderabad, India, are intensely preparing for the launch of the metro. The first section of this 71km network will be launched on March 21, 2015.

In 2014, Keolis will be involved in several major tenders, in particular:

  • Four rail franchises in the UK in which the business is competing as a majority partner on joint bids for the first time (excluding Thameslink):
    • Docklands Light Rail, a driverless metro in London
    • Thameslink, a rail commuter service going through London from North to South
    • Crossrail, a rail commuter service under construction that will go through London from East to West
    • East Coast Main Line, the regional train linking London to Scotland
  • The Sydney Light Rail PPP (Public Private Partnership)
  • Light rail tenders in the USA (Maryland) and in Canada (Ontario). 

In China, a joint venture agreement with the Shanghai Shentong Metro Group was signed in February 2014. The new partners intend to join forces and bid for metro, tram and regional rail contracts in China and the region.

In France, the major contract out for tender is Bordeaux, which Keolis has been managing since 2009. 

Concurrently, Keolis’ business priorities will be to support the “smart city” concept by developing new services (such as real-time passenger information, multimodal mobility, open data initiatives), reduce fare evasion, and encourage the use of alternative energies.