Stalexport Autostrady Capital Group’s summary of H1 2020

Stalexport Autostrady Capital Group has closed H1 2020 with lower sales revenue and a slightly lower net profit, compared to previous year. The financial performance results from restrictions introduced by state institutions and authorities in connection with the spread of SARS-CoV-2 coronavirus.

At the end of H1 2020, sales revenue in Stalexport Autostrady Group amounted to PLN 128.7 million, ca. 23% less than a corresponding period of the previous year. The net profit dropped by 8% to PLN 34.6 million. EBITDA totalled PLN 83.4 million.

The highest impact on the financial result of the Capital Group is exerted by activities consisting in the management and operation of the concession section of the Katowice-Kraków A4 motorway that are carried out by Stalexport Autostrada Małopolska S.A. (SAM) belonging to the Group. Vehicle traffic on the concession section of the motorway, especially in regard to trucks, largely depends on the pace of economy growth, measured by the gross domestic product (GDP).

Reduced traffic on the Katowice-Kraków A4 motorway is caused by restrictions on social and economic activity introduced in Poland and Europe this March as a response to the coronavirus pandemic, which translated to a decline in revenue.

In H1 2020, an average daily traffic on the concession section of the Katowice-Kraków A4 motorway was 32.5 thousand vehicles, nearly 26% less than traffic recorded in a corresponding period of 2019.

The decline was observed both in terms of passenger cars (28.5%) and trucks (13.2%). Revenues from toll collection in H1 2020 amounted to 126.7, a 23.7% decrease compared to a corresponding period of 2019. The decrease in operational costs in H1 2020 compared to H1 2019 was partially a result of lower costs of payments to the State Treasury, which amounted to PLN 14.9 million and PLN 44.4 million in H1 2020 and H1 2019, respectively.

The analysed reporting period has seen a continuation of activities aimed at reducing transaction time and increasing the capacity of toll collection stations at the Katowice-Kraków A4 motorway. In recent months, work was being carried out to launch a toll collection system based on license plates reading, so-called videotolling, also for SkyCash app users, which was accomplished on 1 July 2020, and a new on-line service for users of A4Go electronic toll collection system. With the launch of a new www.a4go.pl portal on 23 June 2020, post-paid option has been added to the formula for using A4Go.

Emil Wąsacz, CEO of the Management Board of Stalexport Autostrady S.A. and Stalexport Autostrada Małopolska S.A.:

We have watched with concern as the traffic declined on the section of A4 motorway under our management, especially this April, as a result of restrictions introduced due to the coronavirus pandemic, since a decline in traffic directly translates to a decrease in our sales revenue; it should be mentioned that motorway activity of Stalexport Autostrady Capital Group, including investments in modernising road infrastructure and maintenance works, are entirely financed precisely from toll collection income.

Luckily, we are currently observing a revival of motorway traffic. Now it is only 9% lower compared to traffic in a corresponding period of 2019.

In H1 2020, we persisted in activities aimed at improving the quality of service for motorway users by upgrading the toll collection system, allowing customers to diversify methods of payment for driving on Katowice-Kraków A4.

Moreover, we continued to replace road surface on the motorway, making effort to minimise traffic disruptions and keeping two lanes both towards Katowice, and Cracow.

We have also modernised motorway drainage system and bridge structures. In H2 2020 we will continue to realise the investment projects planned for this year, such as modernisation of drainage system, re-construction of motorway passages and maintenance works including replacement of road surface.