RATP: sales up but results down
The Régie Autonome des Transports Parisiens (RATP), one of the main public transport operator in the Greater Paris region, has shared its half-year results, which it reports as being very heavily impacted by “inflationary pressures”. Despite an upturn in passenger traffic in the Île-de-France region, it remains below pre-COVID-19 levels. The RATP group’s results deteriorated at the end of June, and its debt increased. Nevertheless, the group is pursuing an ambitious investment and development programme in France and abroad.
Passenger traffic is up in the Ile-de-France region, with a growth of 6 per cent compared with the first half of 2022, reaching 1,518 million journeys. This increase is mainly due to the normalisation of the health situation and changes in fuel prices. Despite this increase, traffic is still 15 per cent lower than in the first half of 2019, due to the prevalence of teleworking and production difficulties in the bus sector, as well as the impact of the March strikes. Nevertheless, the gap continues to narrow, with only an 8 per cent difference in June 2023 compared with June 2019.
Sales up, but results down
Consolidated sales also rose by 2.4 per cent to 3,160 million euros, mainly thanks to the dynamic commercial performance of the subsidiaries, which grew by 7.2 per cent. According to RATP, “The subsidiaries’ contribution to Group revenue represented 823 million euros in June 2023, or 26 per cent of consolidated revenue.” However, the half-year results were affected by the strikes over pensions, resulting in a 10 million euros drop, and by the riots in June, which had a negative impact of 6 million euros.
Overall, the RATP Group’s results deteriorated at the end of June: operating profit (EBIT) fell to 5 million euros (-0.2 per cent of turnover) compared with 130 million euros in 2022 (4.2 per cent). In addition, the Group share of net profit has moved into negative territory at -129 million euros, compared with +64 million euros in 2022.
This deterioration is accompanied by a temporary increase in net debt to €6,074 million, an increase of 538 million euros compared with 2022. According to RATP’s press release, this is mainly due to unfavourable calendar effects on operating working capital requirements and the seasonal increase in investment working capital requirements. These factors are expected to recede in the second half of the year. There was a strongly negative impact of the inflationary context on EPIC’s operating performance, linked to the inadequacy of contractual indexation clauses.
Investments
In total, the RATP Group’s consolidated investments will amount to 963 million euros, maintaining a stable level compared to 2022. The Île-de-France region is maintaining a massive investment effort, amounting to 884 million euros with the support of Île-de-France Mobilités. At a consolidated level, the RATP group’s investments totalled 963 million euros. RATP is fully committed to implementing the ambitious investment programme set out in the 2021-2024 contract with Île-de-France Mobilités, which amounts to 8.5 billion euros over 4 years.
The investments made by the EPIC in Île-de-France amount to 884 million euros in the first half of 2023, including 149 million euros as delegated project manager on behalf of Société du Grand Paris, in particular for the extension of line 14 to the south. These investments are spread across various projects: 501 million euros are allocated to modernising the network and maintaining infrastructure, in particular for the energy transition of the bus network, the renewal of metro, RER and tramway rolling stock, and the modernisation of infrastructure and maintenance workshops. In addition, 325 million euros is earmarked for extending metro and tramway lines, while 58 million euros is being invested to improve passenger comfort.
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