The České dráhy Group Reported a Profit of CZK 1.3 Billion for Last Year

The consolidated profit before taxation of the ČD Group under the International Financial Reporting Standards (IFRS) amounted to CZK 1.3 billion last year. České dráhy alone reported a profit of CZK 2.1 billion. Passenger transport recorded a growth, it has managed to increase the number of passengers transported, and the large-scale renewal of the rolling stock continued, with a total of 141 new vehicles contributing to its rejuvenation. All companies of the ČD Group contributed to the profit of more than CZK 1 billion, with only freight transport ending up in negative figures.

The year 2024 was a turning point for passenger transport. During the twelve months of the year, České dráhy took over 141 new train units and locomotives in its possession. “Last year was marked by unprecedented modernisation of our rolling stock, with 22,000 seats in new modern trains handed over to passengers. The rejuvenation primarily concerned regional transport, with dozens of RegioPanter electric multiple units and RegioFox diesel multiple units heading to the regions. In the field of long-distance transport, we put a new railway star on the tracks, namely the ComfortJet trainsets. This year, passengers will be able to experience them already in their complete nine-car configuration, including a dining car and a control car,” says Michal Krapinec, Chairman of the Board of Directors and Director General of České dráhy. České dráhy invested a total of CZK 18 billion in new vehicles. The passenger transport segment alone thus recorded a profit of CZK 635 million (up CZK 12 million on a year-on-year basis).

Another milestone was reached at the end of last year with the deployment of the first battery trains in trial operation, with four RegioPanter units beginning to run in the Moravian-Silesian Region. “We currently consider battery-powered trains to be an integral part of the future of emission-free rail transport in our country,” adds Michal Krapinec. Up to 120 trains capable of using both batteries and overhead catenary lines could be running on the tracks in the Czech Republic in the coming years.

In total, České dráhy transported 168.8 million customers in 2024 (up 4.4 million on a year-on-year comparison) and the transport performance rose to 8.3 billion passenger-kilometres. This may be interpreted as if every inhabitant of the Czech Republic used a train 15 times a year and travelled a distance equivalent to the route from Prague to Geneva. The increase in the number of passengers brought also higher revenues in passenger transport, reaching CZK 33.3 billion, which is more than CZK 3 billion more than in 2023. Last year, České dráhy dispatched 179,000 trains in long-distance transport and over 2.2 million trains in the regional transport system.

Extensive capital expenditures were also launched in the service area. Construction of repair shops in Havlíčkův Brod and Cheb commenced. Capital expenditures focused on new buildings, technologies, as well as modernisation of the maintenance base exceeded CZK 1 billion. “We will continue at the same pace, with an extensive renovation of the hall in Olomouc having begun this year and with further innovations in the repair sector being prepared in České Budějovice, Česká Třebová, Hradec Králové or Prague,” describes Michal Krapinec. By 2031, České dráhy plans to invest over CZK 12 billion in the development of its service facilities.

Freight transport segment

The year 2024 was extremely challenging for the entire European rail freight transport market. The sharp decline in the transport volumes of traditional commodities transported by rail continued, and many large carriers across the EU reported huge losses, layoffs, and liquidity problems. Despite further growth in transport performance by ČD Cargo's branches and subsidiaries abroad, the total volume of transport in 2024 fell to 56.7 million tonnes. “The decline in volumes was mainly observed in the domestic transport market, particularly as a result of the gradual decline in brown coal transport to power stations and heating plants. In the metallurgical industry, the significant reduction in production activities at Liberty Ostrava played a key role, and there was also lower demand for rail transport of timber,” says Tomáš Tóth, Chairman of the Board of Directors of ČD Cargo, a.s., commenting the situation.

ČD Cargo responded to the decline in performance on an ongoing basis and launched its transformation process in a timely manner with the aim of adapting the company to the new reality and preparing it for the future. “Changes in the structure of transported commodities and an overall decline in performance on the rail freight market in the Czech Republic have led us to the necessary reduction of capacities for which we have no use. We are systematically reducing the number of freight cars, locomotives, and also employees. The product consisting of individual wagon shipments is also undergoing fundamental changes, as it is no longer economically viable in its current form,” adds Tomáš Tóth.

The freight transport segment alone recorded a loss of CZK 945 million. “The economic result was negatively affected in particular by transactions related to the ongoing process of further streamlining of the company – provisions for employee severance payments and impairment of the value of the assets which are to become redundant in subsequent years,” explains Tomáš Tóth. In total, these accounting transactions exceeded one billion Czech crowns. In the case of a decrease in the value of assets, this does not represent an actual expenditure of financial means, but rather a necessary and responsible accounting adjustment which supports transparent financial management and long-term sustainability of the company. The loss for 2024 will be covered from retained earnings from previous years.

The ČD Group Annual Report for 2024 is available on this web site.