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Australian-based and one of the world’s largest toll road operator companies, Transurban Group (ASX:TCL) reported its results for FY20. Here’s what you need to know.

With less people travelling on the road and average daily traffic falling 9% so far this year, TCL swung from a profit last year down to a $153 million loss in 2020. Earnings (before interest, tax, depreciation and amortisation (EBITDA)) fell 7.8% to $1.8 billion as Australia went into lockdown and people shifted to working from home, while the business continued to invest in growth projects. Total revenue fell 2.4% to $2.5 billion. The majority of TCL’s revenue comes from tolls, with North American revenue taking the biggest hit, followed by Melbourne, Brisbane and Sydney.

As for what’s ahead this financial year, TCL expects its dividend to be in line with free cash flows and expects traffic to improve in Sydney, Brisbane, Western Australia and Montreal. Melbourne is subdued due to COVID-19 stage 4 restrictions. Overall performance is dependent on Government responses to the pandemic with road use and working from home a real key for growth.

TCL’s shares have gained 31% from their COVID-19 low. The stock is a Citi sell and a UBS hold.