Malta Public Transport Services, the company running Malta’s bus service, posted a loss of €8.2 million last year, its audited accounts show.

Parent company Autobuses de León took over the running of the service from the government in January 2015, after the service was temporarily nationalised following Arriva’s departure from Malta.

In 2014, the government-run service posted a loss of €1.6 million.

The bus company’s annual report and financial statements say its outlook is positive. The company registered a seven per cent passenger growth in 2015 and further growth is expected this year.

Subsidies for the service provided by Autobuses de León are more than double those paid to Arriva.

Arriva racked up debts of €50 million during its two-and-a-half years of operations in Malta.

Transport Minister Joe Mizzi justified this increased subsidy by saying that the previous grant given to Arriva was clearly not enough. In 2015, Autobuses de León received just under €23 million in government subsidies, figures tabled last week in Parliament show. The subsidy rose to €26.7 million this year.

The company’s accounts state that these subsidies together with the projected growth “will contribute towards improved profitability”.

The company posted revenues of €48.9 million, which were offset by direct operating expenses of €49.2 million.

Administrative expenses totalled €5.6 million, with selling and other direct expenses at €2 million.

The report says the board had taken cognisance of the overall performance during the year and put the losses mainly down to the major changes that were planned and implemented throughout the year.

“This loss has been budgeted for in the company’s business plan.

“All these changes together with the growth that the company is experiencing will contribute towards improved performance,” the report states.

The company pointed towards the acquisition of 143 new buses as being a contributing factor towards a reduction in sub-contracting costs, a reduction in long-term maintenance costs and improvements in fuel consumption costs.

It says the amount of drivers with the company almost doubled in 2015, which also contributed towards lower costs due to the reduced dependency on sub-contracting.

Subsidies over the years

2012: €8.2 million (Arriva)
2013: €10.2 million (Arriva)
2014: €29 million (government-run service)
2015: €22.9 million (Autobuses de León)
2016: €26.7 million (Autobuses de León)

jacob.borg@timesofmalta.com