The railway operator Renfe will substantially reduce the financial losses recorded during recent years in 2024, to the point of reaching figures very close to balance. Specifically, the operator will cut its ‘red numbers’ by 83% compared to those accumulated last year, going from -123.38 million recorded in 2023 to a result close to -20 million in 2024according to the company’s first estimates. The figure is not final and could be reduced further in the absence of executing the latest accounting adjustments, but it is striking in a context in which Ouigo and Iryo increased their losses again last year, going from -25.1 to -79.3 million in the case of the Italian-Spanish operator; and from -36.6 to -42.7 million in the French.
Much of this result responds to the improving the profitability of your commercial activity in the passenger transport segment. The gross operating result (Ebitda) of the public company increased by 17%, to 338 million euros39 million more than the 289 million registered the previous year. Behind this improvement is the increase in travel demand and a notable reduction in losses of the subsidiary Renfe Viajeroswhich decreased its red numbers by 33.6%, going from -65 million last year to -43.16 million today.
The increase in the number of passengers is observed in the operating result of the commercial train segment, which grew by 88%, going from 60.78 million in 2023 to 114.56 million in 2024, practically doubling your profitability. This area includes the high-speed and long-distance trains that Renfe markets under the AVE, Alvia, Euromed or Intercity brands.
The company highlights that the result is given by the significant contribution to the income of the corridors that link Madrid with Catalonia, Andalusia and the Valencian Community; although the figure could have been better if services between Madrid and Valencia had not been suspended due to the consequences of DANA. Despite this improvement, Renfe’s competitive business remains in ‘red numbers’: In 2024 it will lose 45.42 million, 35% less than the previous year, when losses were 70.12 million.
For its part, the train business classified as ‘public service‘ (OSP), which integrates those of Cercanías, Media Distancia and Avant, reduced its tepid profit from the 3.72 million last year to the 2.26 million that it will accumulate in 2024. The public company suffered the erosion in profitability caused by the extension of bonuses for recurring payments, which reduced Ebitda by 1.7 %, from 228.3 million in 2023 to 224.4 million in 2024.
But profit is not only in the passenger business. Also in the imposed cost reduction by the president of Renfe, Raül Blanco, through the so-called ‘Plan for the generation of value and improvement of efficiency’. The public company managed to save around 60 million in current expenses that have had a positive impact on the Ebitda in the form of an additional 27.8 million.
Also the international business, which according to its strategic plan should contribute 10% of recurring revenues by 2030, has made it possible to inject new funds, after the so-called Saudi Arabia AVEthe line that connects Mecca with Medina, improve your numbers and became Renfe’s most lucrative corridor.
‘Extra’ income for Madrid Nuevo Norte
Renfe’s accounting for the year 2024 will also reflect a extraordinary income of about 10 million euros linked to the charge for the use of various company lands in the area known as ‘Operation Chamartín’, on which the urban development of Madrid Nuevo Norte will be carried out. On December 19, Adif formalized the transfer of the land for 1,245 million to the development company, CreaMNN, owned by BBVA, Merlin and Sanjose.
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