HSL’s interim report 2/2016: better result than anticipated
Public transport ridership in the HSL area is up: at the end of August, the increase from the previous year was 1.7% The increase for the whole year is estimated to be of the same magnitude, which would mean over 365 million public transport journeys a year.
Ticket revenue is also up. Ticket revenue is estimated to amount to 329.2 million euros, exceeding the budget by 2.2% and 7.2% up from the previous year. The budget includes the estimated impact of the price increases. Ticket prices were increased by an average 4.9% at the beginning of the year.
As a whole, the result for 2016 seems to be good as the downward trend in public transport cost level seems to continue. At the moment, the costs are expected to drop by 0.2%. The costs began to fall last year when, for the first time, public transport operating costs were down. Operating costs account for nearly 80% of HSL’s expenses.
“At the moment, our result seems to be good. However, there are major infrastructure costs that should be met next year. We will prepare the final budget for 2017 in October and determine which costs will be rolled over to the next year as well as decide on the price increases needed,” says HSL Executive Director Suvi Rihtniemi.
In 2016, operating expenses are estimated to total 624.1 million euros, falling short of the budget by 30.1 million euros. The savings are mainly due to low fuel prices and interest rates early in the year. In addition, the infrastructure costs of the West Metro are rolled over to the next year. The budget provided for a cost increase of 1.7%.
Operating income is estimated to total 638 million euros, falling short of the budget by 1.4%. HSL is expected to run a surplus of 4.4 million euros, while the budget provided for a loss of 17.5 million euros. The difference is mainly due to the savings in public transport operating costs, which are estimated to amount to 11.4 million euros. In addition, the infrastructure charges levied on HSL member municipalities will be rolled over to the coming years due to the delayed completion of the West Metro.
HSL’s investment costs are estimated to amount to 36.6 million euros, falling short of the budged by 10.3 million euros or 21.9%. Procurements related to the ticketing and information system reform account for three quarters of the investment costs. The investment costs will be below the budget because some sub-projects have been postponed to the next year.