Total Revenue
The revenue includes three main components: integrated freight forwarding and logistics services, agency services and other services.
Integrated freight forwarding and logistics services are a package of services that includes container transportation, processing at container terminals, trucking, forwarding and logistics services. As relates to the method of provision, it is an all-inclusive single price service.
The Company acts on behalf of the Russian Railways as an agent in providing mandatory rail services to all users of the railways at the Group's terminals defined by the legislation of the Russian Federation as sites of common use. The Company acts as an intermediary (agent) between the customers and the Russian Railways for a commission.
Other services of the Company include the following: rolling stock and container fleet operation, terminal service, other freight forwarding, trucking.
| Item | 2020 | 2019 | Year-on-year change | |
|---|---|---|---|---|
| RUB mln | % | |||
| Integrated freight forwarding and logistics services | 96,665 | 79,895 | 16,770 | 21.0 |
| Agency fees | 3,480 | 3,217 | 263 | 8.2 |
| Other revenues | 3,352 | 3,067 | 285 | 9.3 |
| Total revenue | 103,497 | 86,179 | 17,318 | 20.1 |
The Company’s revenue in 2020 increased by RUB 17,318 mln, or 20.1% year-on-year, to RUB 103,497 mln from RUB 86,179 mln in 2019. Such revenue growth primarily resulted from an increase in transportation volumes by the Company’s assets, as well as terminal handling volumes on the back of the growing rail container transportation market.In 2020, the Company began to provide the customers with greater volume of integrated freight forwarding and logistics services.
| Item | 2020 | 2019 | Year-on-year change | |
|---|---|---|---|---|
| RUB mln | % | |||
| Adjusted integrated freight forwarding and logistics services | 33,944 | 31,612 | 2,332 | 7.4 |
| Agency fees | 3,480 | 3,217 | 263 | 8.2 |
| Other revenues | 3,352 | 3,067 | 285 | 9.3 |
| Total adjusted revenue | 40,776 | 37,896 | 2,880 | 7.6 |
The adjusted revenue increased by 7.6% year-on-year to 40,776 mln in 2020 from 37,896 mln in 2019. Dynamics of the adjusted revenue reflects raised volume of rendered services and a flexible price policy in conditions of strong competition, demand for services and changed external factors (including decrease in subsidies of the Chinese government for import from the Russian Federation).
Integrated Freight Forwarding and Logistics Services
Revenue from the integrated freight forwarding and logistics services increased by 21.0% to RUB 96,665 mln over 2020.
Adjusted revenue from the integrated freight forwarding and logistics services was up by 7.4% year-on-year to RUB 33,944 mln in 2020, mainly on the back of growing revenue-generating volumes and dynamics of customers’ preferences towards complex and integrated transportation services.
Agency Fees
Revenue from agency fees increased by 8.2% year-on-year to RUB 3,480 mln in 2020 compared to RUB 3,217 mln in 2019. The increased is caused by raised volumes of terminal processing and indexation of tariffs for the services under the agency agreements with the Russian Railways.
Other Services
Other services of the Company include the following: rolling stock and container fleet operation, terminal service, other freight forwarding, trucking.
Revenue from other services in 2020 increased by 9.3% to RUB 3,352 mln compared to RUB 3,067 mln in 2019. The key reason is growth of business volumes.
Other Operating Income
Other operating income in 2020 amounted to RUB 1,224 mln compared to RUB 1,161 mln in 2019 (5.4% increase). The changes in other operating income are linked with the growth of the Company's business volumes.