Finances in brief

Slight improvement in underlying result, but another year closed with a loss

In 2024, NS had an underlying result from operations^[1] of -€141 million (2023: -€187^[2] million). This is a limited improvement compared to the year before, but, as in previous years, severely inadequate for a financially sound NS. Although underlying revenue increased by around 10% in 2024, the long-term drop in passenger numbers compared to before the COVID-19 pandemic continued. NS is also increasingly experiencing loss of revenue and additional costs due to external factors, such as strikes with a cause outside NS and infrastructure problems such as works, disruptions and speed limits. Underlying operating expenses increased by over 8%. This was due to high inflation but also to NS's focus on improving operational performance in a year that saw extensive work carried out on the rail network. Measures implemented included a more robust timetable, an increase in the number of train services and investment in new trains as well as staff recruitment and training. Costs rose in a number of areas in 2024, including personnel, infrastructure, rolling stock and energy. For example, infrastructure levy and concession fee costs payable to ProRail and the Ministry of Infrastructure and Water Management increased by 15% (€70 million^[3]) to €533 million. Replacement service costs for disruptions and railway maintenance have also risen to €23 million over the last few years. NS has not passed on the full impact of the high inflation of recent years in train fares. In 2024, at the government's request, NS avoided any increase at all in most fares, for which the government provided a one-off compensation payment of €120 million. Other public transport providers receive this contribution on a long-term basis. Taking into account non-recurring items and exceptional accounting items, such as the impairment of the main rail network, the reported result from operating activities in 2024 was -€148 million (2023: -€427² million). On balance, NS was left with a net loss of -€141 million in 2024 (2023: -€380 million. The higher net loss in 2023 was partly due to non-recurring impairment of the main rail network and Abellio Germany.

In 2024, NS invested a total of €486^[4] million (2023: €542² million)^[5], mainly in purchasing new trains and upgrading existing trains. The operating cash flow from operating activities^[6] came to €246 million (2023: €218² million) and is insufficient to cover this capital expenditure. The net debt^[7] has risen to €1,093 million (2023: €973 million). The debt position was expected to increase in recent years to some extent given the extensive investment programme, however the increase proved significantly higher due to low operating results, which were only partly offset by government support measures as a result of the COVID-19 pandemic. If NS is to continue investing in mobility for the future and serving the public interest, it is important to improve the results and operating cash flows from operating activities.

The current main rail network concession expired at the end of 2024. The new concession for the period 2025-2033 has a limited earning capacity with below-market returns. We expect to see further financial challenges in the years ahead. Although the concession fee is being replaced with a limited subsidy, our organisation needs to adapt further to the long-term drop in passenger numbers. We will continue our efforts to further reduce our costs and thus improve our results and cash flows. Among other things, NS is doing this by implementing an additional package of cost-cutting measures worth around €200 million a year, which include a reduction in office staff (through natural attrition), IT savings, the disposal of office space and productivity improvements. We are also making these savings to keep train fares affordable.

For a full account of our financial performance, please see our financial statements. 

• 1Result from operating activities adjusted for the effect of non-recurring and exceptional accounting items.
• 2Due to the sale of the activities in Germany at the end of 2024, the related results and cash flows of 2023 (with retroactive effect) and 2024 are presented under discontinued operations. In the annual report for 2023, the underlying result from operating activities in 2023 was -€191 million, the result from operating activities was -€540 million, investments €548 million and operating cash flow from operating activities €229 million.
• 3This comparison excludes the €10 million high-speed line fee which was recognised in 2023 and related to previous years.
• 4€36 million more than stated in the cash flow statement. Refers to investments for which the invoices have been paid directly by the financing party, with the counterpart being an increased debt from NS to the financing party. As a result, the investment is not a direct expense for NS.
• 5Here, capital expenditure exclusively concerns the acquisition of tangible and intangible non-current assets and property after deduction of related subsidies.
• 6Operating cash flow from operating activities serves as a year-on-year comparable indicator of the cash-generating capacity of operating activities. This indicator is derived from the consolidated cash flow statement in the financial statements and concerns the result after adjustments, after deduction of income tax paid/received and after redemption of lease obligations.
• 7Net debt relates exclusively to private loans as disclosed in the financial statements, after deduction of cash and cash equivalents (excluding security deposits received for energy contracts), money market funds and short-term deposits.