The Atlas Arteria Group (ASX: ALX) share price has remained relatively flat today, despite the company providing an improved trading update.
At market open this morning, the Atlas Arteria share price reached as high as $6.34. However, the toll road company’s shares have since pulled back to $6.21, down 0.88% at the time of writing.
How did Atlas Arteria track for Q3 FY20?
Atlas Arteria reported a strong recovery following the impact of various international government responses to COVID-19.
For the quarter ending September 30, the company produced a revenue decline of 4% over the comparative period. This was a large improvement on the 44.2% drop of the June quarter compared to the prior corresponding period.
The resurgence of traffic levels was noticed particularly in France and Germany during the European summer months of July and August.
Let’s take a closer look at how each of Atlas Arteria’s segments performed.
The company operates APRR toll road networks in France and ADELAC on the A41 motorway between France and Switzerland. Overall traffic volumes for APRR and ADELAC were down marginally for the three months compared to this time last year. The relaxation of travel restrictions coupled with the start of the holiday season underpinned higher traffic volumes.
However, as a second wave of COVID-19 descends on France, government officials have reinstated limitations on social interaction. Thus, Atlas Arteria is experiencing softened traffic volumes and expects this to continue in the coming quarter.
Across the Atlantic, Atlas Arteria’s United States road network saw a massive fall in traffic volumes. The reduction in commuting and a move to remote learning for schools has contributed to a fall of 44.8% over the prior corresponding period.
Pleasingly, the company said a staged-return of kindergarten to Grade 2 students is expected to occur in late October. It is anticipated this will have a positive impact on traffic on the Dulles Greenway in North Virginia.
Traffic on German toll roads for Q3 was up 0.8% over the same period in 2019. Mecklenburg-Vorpommern, the state in which the Warnow Tunnel is located, has reported few COVID-19 case numbers since the pandemic hit.
Social gatherings have been relaxed since early July, with regional tourism resuming and traffic returning to growth.
Atlas Arteria advised that although Germany was expecting a rise in COVID-19 cases, Mecklenburg-Vorpommern had been relatively unaffected.
About the Atlas Arteria share price
The Atlas Arteria share price fell to a 52-week low of $3.51 in the March COVID-19 crash before recovering to trade at prices over $6 by May. However, the share price remained flat in the following months, failing to recover to its pre-COVID levels.
The company has a market capitalisation of $5.9 billion.
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