1. Revenues
In the following table, the revenues are broken down according to a combination of transport type and geographical area.
(in millions of euros) | Revenue | Additional government contributions in the context of COVID-19 | 2021 |
Train-related transport in the Netherlands | 1,519 | 925 | 2,444 |
Station development and operation in the Netherlands | 355 | 15 | 370 |
Train-related transport in the United Kingdom | 3,027 | - | 3,027 |
Bus-related transport in the United Kingdom | 267 | - | 267 |
Train-related transport in Germany | 378 | - | 378 |
Total revenue | 5,546 | 940 | 6,486 |
(in millions of euros) | Revenue | Additional government contributions in the context of COVID-19 | 2020 |
Train-related transport in the Netherlands | 1,539 | 818 | 2,357 |
Station development and operation in the Netherlands | 376 | 24 | 400 |
Train-related transport in the United Kingdom** | 2,860 | - | 2,860 |
Bus-related transport in the United Kingdom | 240 | - | 240 |
Train-related transport in Germany | 744 | - | 744 |
Total revenue | 5,759 | 842 | 6,601 |
- * Train-related revenue in Germany refers to the first half year 2021 compared to a full year 2020
- ** Due to the new contract forms in the United Kingdom, it is no longer possible to refer to additional contributions in connection with COVID-19 and no breakdown is given. For the sake of comparability, the figures for 2020 have been adjusted. An amount of €2,037 million was reclassified for this purpose.
Public transport/main rail network availability fee (train-related transport in the Netherlands)
By virtue of the public transport availability fee arrangement (BVOV) as enacted by the Ministry of Infrastructure and Water Management, NS is entitled to compensation for loss of revenue suffered by NS as a result of COVID-19. The compensation amounts to 93% of the indexed 2019 cost level for the 2021 availability fee and 93% of the 2020 cost level for the 2020 availability fee, minus 100% of the realised revenues. For 2021, NS is entitled to BVOV for the whole year and for 2020 for the period from 1 March 2020 to 31 December 2020. Based on a calculation, NS has accounted for the compensation in the amount of €925 million (2020: €818 million). NS received an advance of €644 million for 2021, being 80% of the calculation at the time of application. Conditions apply to claiming the public transport availability fee, such as operating a full timetable and complying with tender legislation, a dividend ban, a ban on severance payments to Dutch executives and a bonus ban for executives and board members within the Dutch entities. NS has come to the conclusion that the availability fee for 2020 and 2021 can be justified by assessing it against the conditions. The BVOV contributions for 2020 and 2021 have not yet been finalised.
Emergency Bridging Measure for Sustained Employment (NOW)
For the activities relating to station development and operation in the Netherlands, so-called NOW compensation (operating company scheme) was applied for and recognised as revenue for an amount of €15 million (2020: €24 million). In order to claim the NOW compensation, conditions apply, such as the ban on management bonuses, dividend payments and agreement by the employee representative body. The applicable NOW conditions have been reviewed by NS and on this basis NS has concluded that the NOW compensation can be justified. The NOW applications that have been accounted for have not yet been finally submitted and determined.
EMA/ERMA (train-related transport in the United Kingdom)
The outbreak of COVID-19 led to the contract terms for Greater Anglia, East and West Midlands and ScotRail being amended by the Dft until 20 September 2020 by means of so-called EMAs. The franchising authority has subsequently followed up the term of the EMAs with ERMAs for Greater Anglia and West Midlands. When this form of contract expired in September 2021, the ERMAs were converted to new National Rail Contracts (NRCs). For East Midlands, the EMA has been extended until 16 October 2022. ScotRail’s current EMA expires on 27 February 2022, after which a Temporary Measures Agreement will be concluded with Transport Scotland, which will last until 31 March 2022.
Miscellaneous
Station development and operation in the Netherlands includes an amount of €31 million (2020: €39 million) relating to development activities.
Measurement basis
Revenues
Revenues are recognised on the basis of the fee that is laid down in a contract with a customer. The Group recognises revenues when it transfers control of a good or service to a customer. Revenue includes transport revenue including additional contributions from governments within the framework of COVID-19 and revenue from other business activities after deduction of discounts and VAT.
Provision of services and sale of goods
Revenues from the sale of travel rights are recognised at the time the travel right arises. Revenues from season tickets is recognised over time and recognised in the income statement over the period of the season ticket.
Revenues from the sale of goods are recognised in the income statement when control of the goods has been transferred to the buyer, recovery of the consideration due is probable, the associated costs or possible returns of goods can be reliably estimated.
Fees from the government or similar bodies arising from transport contracts or transport franchises are recognised in the income statement over the period to which the fee relates.
Additional government contributions in the context of the coronavirus of COVID-19
The contributions from governments in the context of COVID-19 are determined on the basis of the individual arrangements with various government agencies and are intended to cover costs incurred/allowance as a result of loss of revenue in (part of) the financial year. The final amounts of these contributions for 2020 and 2021 will be determined in 2022, but are sufficiently certain to be recognised in the financial statements on the basis of IAS 20. The contributions are allocated to the period to which they apply. The availability fee in the Netherlands was determined on the basis of the technical memorandum and audit protocol.
Rental income
Rental income from property is recognised in the income statement over time, based on the duration of the rental period. Costs of commitments made as an incentive to enter into rental agreements are recognised as an integral part of the total rental income and distributed on a straight-line basis over the contract period. Rent reductions granted as a result of COVID-19 during ongoing contracts for services still to be rendered are distributed on a straight-line basis over the contract period. Rental discounts that have been granted retroactively for services already rendered are not deducted from revenues but are included in the assessment of expected credit losses under IFRS 9.