VR Transpoint, the freight division of Finland’s state-owned railway company VR Group, recorded a 4.9% increase in net sales during the second quarter of 2024, as detailed in the company's latest financial report. Despite a slight reduction in rail transport volumes, VR Transpoint's financial outcomes benefited from adjustments in operations, pricing, and an energy-saving program.
The rise in net sales occurred despite a -0.9% drop in rail transport volumes, decreasing to 5.9 million tonnes from 6.0 million tonnes in the same period last year. This reduction was largely due to extended industrial action into April, which impacted freight movement. However, a recovery within the forestry sector helped prevent further declines.
VR Transpoint's results in the second quarter are consistent with VR Group’s overall performance. The parent company experienced a 7.8% rise in net sales, supported by a higher number of passenger journeys, new city traffic agreements, and the acquisition of long-distance train operations in Sweden. VR Group’s earnings before interest and taxes (EBIT) for the quarter reached EUR 34.6 million, up from EUR 15.7 million the previous year, indicating a rebound from earlier challenges in the year.
The company's acquisition of MTRX in Sweden at the end of May played a significant role in this growth, contributing to VR Group's efforts to broaden its market reach beyond Finland. In Finland, rail travel demand remained robust, though customer satisfaction in long-distance travel, as measured by the Net Promoter Score (NPS), dropped to 44 from 48 in the previous year. This decline was primarily due to decreased punctuality, with on-time performance falling to 78% as a result of extensive track work and temporary speed restrictions.
In city traffic, VR Group reported an increase in sales, driven by higher passenger volumes in Finland and Sweden, along with the initiation of new contracts. The company also secured additional traffic contracts in Sweden, including those for the Tyresö area and Norrtåg, thereby reinforcing its position in the competitive Swedish market.
VR Group continues to focus on long-term objectives, aiming to balance financial outcomes with growth while adhering to its core values. This approach includes planned investments exceeding one billion euros, alongside cost-saving measures totalling EUR 250 million by 2027. The company remains committed to improving the customer experience, such as through upgraded Wi-Fi connectivity on long-distance trains, while advocating for necessary rail infrastructure investments to enhance punctuality.
