Annual report 2011:
GVB books 36.8 million euro profit
GVB closed out 2011 with a positive result of € 36.8 million euros. This result exceeds expectations and is attributable to a five year long cost reduction program, increased ticket sales and better than good performance with respect to transportation services so that GVB received the maximum bonus of € 2.5 miljoen euro from the the City Region of Amsterdam. GVB has closed the 2006-2011 concession period with a positive outcome.
Cost reductions program
For the 2006-2011 period, GVB had decided to reduce costs. This was achieved by a decrease in the number of FTEs, further reducing overhead, and improving productivity such as lowering absenteeism and using more effective schedules. The cost of procurement of materials and facilities services was also reduced. By lowering costs, GVB has satisfied an important requirement for sound financial management in the coming years.
In the current 2012-2014 concession, GVB expects the results will be less. During this period, GVB will received € 50 million euros less in subsidies from the City Region of Amsterdam. The € 15 million euros profit that GVB achieved in 2011 for increased ticket sales will be used by the City Region of Amsterdam in 2012-2014 to cushion the cutbacks in transportation subsidies provided by the State. The increased tickets sales is attributed to fewer fare dodgers, improved apportioning of passenger profits (OV-chipkaart), and a two percent increase in the number of passengers.