Israel Railways first half profit sharply down

Israel Railways train  picture: Eyal Yitzhar
Israel Railways train picture: Eyal Yitzhar

All the same. passenger numbers continue to rise, punctuality is improving, and the company is pushing ahead with electrification.

Israel Railways' net profit fell sharply in the first half year, from NIS 238 million in the first half of 2015 to NIS 64 million in the first half of 2016. In the second quarter of this year, Israel Railways posted a net profit of NIS 29 million, which compares with NIS 22.9 million in the second quarter of 2015.

Revenue in the first half of this year was NIS 1.12 billion, which compares with NIS 1.07 billion in the first half of 2015. In the second quarter of this year, revenue was NIS 562 million, compared with NIS 537 million in the corresponding quarter of 2015.

Israel Railways recorded 28.9 million passenger journeys in the first half of 2016, up from 25.9 million in the corresponding period of 2015. The average daily number of journeys was 213,000, which compares with 194,000 in the first half of 2015. In May this year, Israel Railways recorded a peak number of average daily journeys of 248,000.

The lines with the largest rise in passenger demand were the southern coastal line between Tel Aviv and Ashkelon, on which passenger journeys were up 17%; the Tel Aviv-Hod Hasharon line, with a rise of 9%; and the Tel Aviv-Binyamina line, with a rise of 16%.

Punctuality is also on the rise, at an average of 95.6% in the first half of 2016, compared with 95% in 2013-2015 and 88.67% in 2010-2012.

Outgoing Israel Railways CEO Boaz Tzafrir said, "Israel Railways' activity continued to grow in the first half of 2016. For two-and-a-half years, the company has consistently reported profits and positive results in all elements of the service we give our customers. Customer numbers are growing constantly on most lines, and we are proud of the fact that our longstanding lines are attracting more and more new customers. At the same time, our development momentum continues, with the opening of the Negev line and its stations, and now with the opening of the renewed Jezreel Valley Railway that will provide service to thousands of additional customers.

"In the first half of 2016, Israel Railways accelerated progress on several important projects, among them electrification of the railways infrastructure, which will have a considerable impact on the character of the company and its service, the aim being to double train and passenger numbers by the end of the decade."

Published by Globes [online], Israel business news - www.globes-online.com - on September 1, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Israel Railways train  picture: Eyal Yitzhar
Israel Railways train picture: Eyal Yitzhar
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