Traffic Management Company Fintraffic Ltd’s half-year report, January–June 2024

January-June 2024 

• The Group’s turnover totalled EUR 126.3 million (EUR 120.1 million 1-6/2023) 
• The consolidated EBITDA was EUR 27.8 (24.0) million  
• The operating profit/loss amounted to EUR 8.6 (5.1) million.
• Profitability has been improved, in particular, by the increase in demand for Air Navigation Services following the recovery of air traffic and by increased prices in accordance with regulation.
• Developing the efficiency of traffic control service provision is central to the Group. The company's efficiency is improving as planned. 
• Both the service and safety level of traffic management has remained good in all modes of transportation. 
• A record amount of open traffic data was distributed through Digitraffic maintained by Fintraffic, totalling 328.01 TB (growth by 31% vs. H1/2023). 
• During the first six months of the year, 125 TB of data has been moved through the Digitransit service, which transmits public transport travel information.
• During the period under review, the digital transit's interface searches increased to EUR 8.54 billion (43% more than in H1/2023).
• At the end of the period under review, 213 organisations were part of the traffic data ecosystem (H1/2023: 170). 

The Fintraffic Group’s revenue for January–June totalled EUR 126.3 (120.1) million. This revenue mainly consists of road, rail and maritime traffic management services provided to the Finnish Transport Infrastructure Agency, and air navigation services that are provided to airlines and airports. The Group also provides services to Traficom, cities, ports and international customers.   

Operating profit totalled EUR 8.6 (5.1) million. with an operating margin of 6.8 per cent. Improved profitability is based on the recovery of the Air Navigation Services business environment from the challenging period it experienced over the past few years. Operating profit is expected to be close to 5% during the last half of the year.

Key indicators for the Fintraffic Group  

Key events of H1/2024

Operational service production in all modes of transport and digital services went according to objectives. The security level has also remained good. As a rule, the development projects implementing the company's strategy have progressed as planned. 

Development of the traffic market and digital ecosystem services 

Fintraffic's digital services were used in record numbers during the first half of the year. The use of the updated Fintraffic App increased particularly strongly. The Traffic Situation and Train Departures services also attracted a lot of visitors.

During the first half of the year, 8.54 billion interface searches were performed on the Digitransit platform for public transport travel data. The increase was as much as 43% compared to the same period last year. In Digitransit, 125 TB of data was shared during H1. The Digitransit platform allows Finnish public transport journey planners to utilise a common knowledge base.

At the end of the period under review, 213 (H1/2023,170) organisations motivated to develop the traffic system were involved in the traffic data ecosystem. The rulebook promoting the utilisation of data in the transport and logistics sector has been signed by 23 partners. 

The open data shared by Fintraffic was the most used data in the history of Digitraffic to develop services and applications for other operators. During H1, approximately 3 billion searches were conducted on the open interfaces for traffic data provided by Fintraffic, an increase of 29 per cent compared to the same period last year. A total of 328 TB of data was distributed, an increase of 31% compared to the same time last year. 

The digital consignment notes (eFTI) implementation project is progressing as planned.

The export cluster of companies providing traffic data services coordinated by Fintraffic has been launched. Numerous Finnish actors have started joined the effort to promote the export of data services, and their joint sales activities have started. The programme supported by Business Finland aims to accelerate the export by Finnish traffic sector companies.

Traffic control services 

Air traffic

The number of flights flying over Finland has increased during the first half of the year, and Chinese airlines in particular have significantly increased their flights. International air traffic has begun to approach the same level it was at the year before Covid-19. The growth in air traffic has been boosted by, among other things, Finnair adding flights to its summer schedules. Traffic volumes are also increasing with Russian aircraft flying to Kaliningrad, as the air traffic over the Gulf of Finland is being provided with an air navigation service in accordance with international rules. 

Of Air Navigation Services' strategic projects, the procurement and deployment of the Multi Remote Operating Tower (MROT) has progressed to tendering with system presentations and negotiations with tenderers taking place. State agreements are currently being drafted nationally for the FINEST project, which aims to implement air navigation service cooperation between Finland and Estonia. The Airspace 2027 project was launched in the spring with the definition of the concept and marginal conditions. In addition to aviation safety, key objectives include consideration of national defence needs, competitiveness and accessibility, environmental objectives and sustainability, and taking all airspace users into account.

In June, Air Navigation Services was awarded the ISO9001 quality system certificate.

Road traffic 

The total traffic volumes on highways and main roads were generally at a similar level compared to the previous year. The decline in the volume of heavy traffic has rounded a corner and started to rise slightly. 

Of road traffic management projects, investments in development and replacement of roadside technology mainly progressed as planned. The general planning on the replacement of the technical systems of the tunnel leading to Vuosaari Harbour in Helsinki was completed. Construction planning was put out to tender and the planning was launched. The planned construction work in the tunnel will begin in 2025. 

Maritime traffic  

Vessel Traffic Services remained of high-quality and in accordance with agreements throughout the first half of the year. In January–June, Vessel Traffic Services prevented two possible groundings.  

Maritime information management system NEMO, coordinated by Vessel Traffic Services, has progressed as planned. The international standardisation work of digital VTS services has progressed in working groups (IALA and CIRM), and Finland's objectives have been achieved through successful stakeholder cooperation. 

As a result of an agreement on the renewal of Port Activity's business model, the POLO Port Activity business was transferred from Unikie Oy to Fintraffic on 30 June 2024. The arrangement will allow the long-term development of the service already used in more than 20 ports in Finland and Sweden. 

Vessel Traffic Services is taking part in the international Open Risk II project, which aims to develop new innovative risk management tools that help prevent maritime accidents and minimise negative environmental impacts.

Rail traffic 

In the early part of the year, train traffic has been particularly affected by challenging winter conditions, political strikes and track damage resulting in the cancellation of long-distance traffic as a whole. Rail traffic in summer has been particularly affected by extensive track work in different parts of Finland. Some of these major rail projects include the Espoo Rail Line, Tikkurila and Kytömaa – Ainola, the Joensuu and Oulu railway yards, the construction of Seinäjoki Travel Centre and Kupittaa–Turku. The volume of cargo traffic increased after the winter. An increase is also evident in the volume of long-distance trains and commuter services compared to the previous year.

Traffic control and management services have mainly functioned at the target level. Disruptions that have been visible to customers have included interruptions in passenger information in platform areas, and corrective measures related to this are in progress. Other traffic control and management development projects are progressing as planned. Development projects improve the effectiveness, safety and smooth running of operations. 

The Development and Verification phase of the Digirail project aimed at reforming Finnish train control is proceeding as planned. The contract for the procurement of security equipment related to the project was signed in April.

Sustainability 

Fintraffic's double materiality analysis, which was approved at the beginning of the year, was used to determine the cornerstones of Fintraffic's sustainability. These themes have been used to prepare the organisation of sustainability work in accordance with legislative sustainability requirements starting in 2025 and to prepare for reporting in accordance with the CSRD. 

The company is committed to the Global Compact corporate responsibility network's activities. 

CEO Pia Julin:  

Fintraffic's digital services reach more Finns than ever before. Both companies and private citizens are using traffic information in different situations, making travel and transport chains smoother, saving both costs and the environment. The updated Fintraffic App uses real-time data obtained directly from Fintraffic’s traffic centres, meaning it always offers up-to-date information on the traffic situation. By allowing the app to send push notifications the user can follow traffic announcements on the basis of their location.   

The core of our strategy is to promote the safest, most efficient and most environmentally friendly traffic in Finland. In order to achieve this, we provide high-quality, reliable and effective traffic control services in all modes of transport as the only actor worldwide. Thanks to our high-quality traffic management services and world-class experts, we have excellent potential to promote the utilisation of information throughout the transport sector and to promote increasingly functional travel and transport chains. We implement our strategy through three programmes. These programmes include the development of traffic control, productised digital ecosystem services and cohesive practices. 

Our ownership strategy requires us to build a transport data ecosystem and to enable and develop market-based products and services. We see significant opportunities here, which is why we create preconditions for the sector's companies in Finland and for the export of traffic sector data services in the new export cluster. Open transport data can be utilised to prevent congestion and to make the transport system more efficient. According to calculations, by ensuring the better utilisation of traffic data in the mobility of people and goods, Finland could achieve annual additional benefits of up to hundreds of millions of euros. 

Fintraffic's values are realised in daily activities better than before. This is reflected, for example, in a decrease in the number of sickness absences, the development of supervisory work and a reduction in the stress experienced by personnel. Especially on these grounds, MIELI Mental Health Finland has awarded Fintraffic the Hyvän mielen työpaikka label.

Fintraffic's employee bicycle benefit continued to grow, approximately one in four Fintraffic employees are cyclists.   

Organisation

Fintraffic has been reforming its organisation since 1 August. The aim of the reform is to strengthen the implementation of the company's strategy with a focus on the development of digital ecosystem services and traffic control. As a result of the change, entities related to information management, technology, and procurement and development activities will be concentrated in an organisation led by the COO. Riku Moisio has stepped into the position of Chief Operating Officer (COO) in Fintraffic's management team. 

Outlook for the future 

The Helsinki Metropolitan Area business premises project is reaching its completion and our Group's operations located in Pasila will move to the new premises in late autumn and spring 2025. 

The profitability of road, rail and vessel traffic management is expected to remain stable. The company still sees opportunities for improving the efficiency of its service provision, and has set an efficiency target of EUR 30 million for 2023–2028. An EU-level performance development plan has been set for air navigation service provision.

Fintraffic will continue to invest in the modernisation and automation of service production systems. In the near future, major projects will include technology upgrade work on road tunnels and open-road sections, as well as a major upgrade to traffic and train control in the Finnish railway network through Digirail and automation projects.  

Although investments in the near future will be partially funded by loans, Growth of debt is expected to remain moderate and the balance sheet is expected to remain strong.