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The Year 2012 Brought Growth in Passenger Numbers and Turnover

Last year’s economic results show that interest in our services is growing. While in passenger transport revenues and passenger numbers have increased, in freight transport the value of revenues has at least maintained the same level as in 2011...

Rok 2012 přinesl růst přepravených zákazníků i tržebBut the final figures also reflected markedly high depreciation in the case of ČD, and a fundamental restructuring and adverse market conditions in the case of ČD Cargo. ČD Group’s overall earnings for 2012 were in line with international standards, amounting to a loss of CZK 1.6 billion. At the same time, however, an analysis of partial results indicates a growth trend in ČD Group’s main activities – passenger and freight transport. Moreover, net income was significantly burdened by record investments in rolling stock and by related depreciations.

Passenger Transport

In passenger transport, ČD achieved an operating profit in the amount of CZK 1.862 billion. “EBITDA, which is growing demonstrably, is the most significant indicator for us,” says ČD’s CFO, Petr Vohralík. Not only did revenues from passenger transport increase by CZK 319 million last year, but the number of passengers transported rose by 3 per cent – to 169 million. The most significant cost item in the results for passenger transport is depreciation, which increased year-on-year by more than CZK 150 million. “The amount of depreciation is related to the massive volume of finances going to renewing what sustains us. While most companies invest a sum each year equivalent to their depreciation, at ČD this sum has been several times that for a number of years,” explains Petr Vohralík. This is why the passenger transport segment generates a loss after depreciation and taxes of CZK 517 million (in 2011 it was CZK 583 million).

The company’s earnings also reflect costs which it can influence only partially or minimally. These include in particular a rise in the price of traction energy. On the other hand, ČD had lower wage expenditures – compared to 2011 they declined by CZK 100 million. The administration of real estate was a negative factor, as a large number of the station buildings which ČD owns generate earnings markedly lower than the costs of their maintenance and reconstruction. For this reason, the company is currently trying to sell these buildings to the Railway Infrastructure Administration at their market value.

Freight Transport

For ČD Cargo, last year was a very severe test which was also reflected in its economic results – a loss of CZK 1.911 billion. Although in a stagnant economy the national freight carrier managed to maintain revenues at approximately the same level as in 2011 (an increase of CZK 47 million, or 0.3 per cent), the costs of restructuring the company and an extraordinary depreciation of the valuation difference impacted the final figures negatively.

“As the economy fares, so fare freight carriers. This is why ČD Cargo did not achieve its planned volume of shipments. Moreover, last year was quite unusual for the company with respect to its accounting. Of key importance was the decision by management to depreciate the company’s assets in the amount of CZK 1.2 billion, while at the same time creating a reserve for restructuring in the amount of CZK 0.5 billion. It must be emphasised that this is not an actual loss of funds, but rather an accounting operation which impacts the final figures,” explains CFO Petr Vohralík. According to the operational plan, ČD Cargo should achieve balanced earnings this year.
Václav Rubeš

ECONOMIC RESULTS FOR 2012

ČD GROUP

  • Revenues: CZK 37.7 billion
  • EBITDA: CZK 5.56 billion
  • Depreciation: CZK 6.1 billion
  • Net Income: CZK – 1.6 billion

PASSENGER TRANSPORT

  • Revenues: CZK 19.5 billion
  • EBITDA: CZK 1.9 billion
  • Number of Passengers: 169 million
  • Net Income: CZK – 517 million

FREIGHT TRANSPORT

  • Revenues: CZK 15.3 billion
  • EBITDA: CZK 711 million
  • Volume of Shipments: 73.4 million tonnes
  • Net Income: CZK – 1.9 billion

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ČD Directory

Passenger Transport, Information for passengers, www.cd.cz

Transport, Information for partners, www.cdcargo.cz

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