Verra Mobility Loses Money During Virus Scare

The largest operator of speed cameras in the United States is losing money in light of the Covid-19 virus panic. American Traffic Solutions (ATS) traditionally has outperformed its money-losing Australian rival, Redflex Traffic Systems. In 2018, ATS decided to diversify operations by merging with toll road giant Highway Toll Administration, with the combined entity going under the new name Verra Mobility. Verra Mobility announced on Friday that its earnings had plunged.

“Some of our largest customers have indicated that their business volumes had fallen nearly 80 percent in April and 60 percent in June,” Chief Financial Officer Patricia Chiodo explained on a conference call with investors. “The business segment derives the majority of its revenue from tolling services provided to rental car companies, which has been greatly impacted by stay-at-home orders and reduced travel due to Covid-19.”

Overall, the company saw its earnings drop fifty percent over last year, as toll roads can only earn a profit by creating traffic congestion. Verra Mobility is also feeling the impact of the Texas ban on red light cameras, which cost the firm $2.9 million. Verra Mobility began firing its employees to make up for the losses.