COVID-19 will take a huge chunk out of Freeway 407 visitors, revenues and gains

TORONTO — An increase in COVID-19 bacterial infections and restrictions in the Toronto place have resulted in a dramatic reduction in targeted traffic on the Highway 407 toll highway.

The enterprise that operates the freeway, 407 Intercontinental Inc., suggests a 44 for every cent drop in traffic volumes in the initial quarter of the 12 months had a significant effects on its net revenue.

Total outings more than the 3 months ended March 31 lessened to 13.08 million from 23.5 million, whilst whole vehicle kilometres have been 256.1 million, down 48 for every cent from 490.8 million a 12 months before.

In general, internet earnings plunged to $3.7 million from $114.5 million in the initially quarter of 2020 when the pandemic started to have an impression.

Revenues were being $169.1 million, down 41.2 per cent from $287.8 million.

The enterprise says it expects targeted traffic volumes will improve as vaccinations ramp up throughout the province.

In 2020, 407 Global earned $148 million on $908.6 million of revenues, down from $575.7 million on $1.51 billion of revenues a yr before.

Highway 407 is owned by subsidiaries of Canada Pension System Expenditure Board (50.01 per cent), Ferrovial S.A. (43.23 per cent) and SNC-Lavalin Inc. (6.76 per cent)

This report by The Canadian Press was first released April 22, 2021.

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