Press Releases

ČD Group Ends 2014 with a Net Profit of 156 Million Czech Crowns

12.5.2015 - 12:00

ČD Group reported net income of CZK 156 million after taxes for 2014 under international accounting standards. This represents a year-on-year improvement of more than CZK 2 billion. Its EBITDA and EBIT indicators showed similar gains.

“Our goal is to stabilise the ČD Group and to maintain its majority shares in the passenger and freight transport markets. We will thus continue to endeavour to increase the profitability of the most important companies ČD, a.s., ČD Cargo, a.s., and VUZ, a.s., which form the main focus of our business activities, and to push for maximum efficiency in our supporting activities in the areas of information technologies, repairs and maintenance performed by the subsidiaries ČD IS, a.s., and DPOV, a.s.,” says ČD’s chairman, Pavel Krtek.

Hospodářské výsledky Skupiny ČD 2013 - 2014

ČD Group’s total operational revenues and sales from its main activity are on a comparable level with the previous year’s figures. There was growth of one per cent in sales from its main activity, which was influenced positively by sales in passenger transport. The most significant savings on the cost side were in power consumption, which declined by CZK 950 million (i.e. by 5.5%) year-on-year, mainly through savings in traction costs that were influenced by a smaller volume of freight transport shipments and in part also by reduced purchase prices on the electricity and diesel markets. Other costs declined as well, however, including personnel expenses, which were reduced by CZK 577 million (5%) year-on-year thanks to restructuring measures undertaken in freight transport.

Passenger transport

The passenger transport segment achieved better results than in 2013 and reported positive earnings before the inclusion of financing costs. Unfortunately, the high level of debt incurred due to investments in vehicle renovations generates high financing costs (for servicing the debt), resulting in an overall loss. “In order to make rail transport more attractive, we are increasing the number of disabled-accessible connections and developing modern sales channels as well as supplementary services such as free Wi-Fi. And passengers appreciate the higher-quality services – last year we transported more than 170 million of them. These services are developing dynamically especially in long-distance and suburban transport,” Pavel Krtek adds. Also thanks to this, sales from the main activity increased by CZK 800 million. By contrast, operational and overhead costs decreased, and thus the passenger transport segment reduced its loss from CZK 2.053 billion in 2013 to CZK 865 million in 2014.

Freight transport

Economic performance was also positive in the second-most-important segment of our activities – freight transport. Although sales declined by CZK 584 million due to a reduction in purchased deliveries and the loss of black and brown coal shipments, ČD Cargo was nevertheless more profitable, as it continued with restructuring and managed to save hundreds of millions of crowns on operational and personnel expenses. This paid off in the form of an after-tax profit of CZK 877 million, which is CZK 100 million more than in the previous year.

 



ČD Directory

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

Transport, Information for partners, www.cdcargo.cz

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