One company that operates red-light cameras, posted at intersections to generate automatic traffic tickets, reports that revenue is down due to the coronavirus pandemic.
Shares of Redflex, which trade in Australia, are down 46% since the beginning of the year.
On a call with investors Monday, Redflex CEO Mark Talbot warned that further travel restrictions could delay new installations and therefore impact revenues.
Fascinating that a business that’s as close to a license to print money as it gets is wrecked after a few weeks of people not driving their cars. Everything is leveraged up to the eyeballs.
Red light cameras are now illegal in many places because the revenue-generation incentive inevitably leads to corruption, spurious fines, dangerous placements and unconstitutional searches.