Redflex Struggles
Posted on September 11, 2009
Filed Under Uncategorized |
Could not have happened to a nicer bunch of folks… and this serves as a reminder that these companies operate at the behest of the public, not independent of, and the increasing public opposition to red light cameras can force them to change their illegitimate ways.
The largest provider of red light camera and speed camera services in the US admitted yesterday that public opposition has begun to affect the bottom line. In an announcement to the Australian Securities Exchange (ASX), Melbourne-based Redflex Traffic Systems reported a nine percent drop in net profit for the year ended June 30, 2009. This has come about in part as motorists increasingly refuse to pay automated fines and use public pressure to force cities to eliminate photo enforcement programs.
“We have been adversely affected by reduced collection rates on some of our US contracts, write-downs on several contracts that have not been renewed, extended start-up difficulties with a major state-wide speed contract in Arizona and costs in dealing with litigation and legislative issues,” a Redflex statement explained. “These and other factors have affected profitability for the year.”
[From Public Opposition Drives Down Redflex Profit Margin]
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My name is Jeff Nolan and I write Venture Chronicles. These are my thoughts on technology, innovation, management, public policy and pretty much anything else that I find interesting.
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