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Czech Railways reports improved profits in H1 2016

Czech Railways group’s net profit rose to CZK 375 million (EUR 13.8 million) in the first half of 2016 from CZK 102 million a year earlier. The increase was generated by growth in passenger transport revenue, as well as the sale of redundant assets and a better management of the rail freight transport segment.

“Our services are used by over 85,600,000 people and the transport performance increased by 71 million passenger-kilometers, ie. 2%. For example, we saw a 4% growth in fares revenues from the integrated transport systems of cities and regions that are developing dynamically”, said Pavel Krtek, ČD CEO and Chairman of the Board. In the same time,  the costs of the passenger segment  increased (expenditure with maintenance and repair of vehicles, depreciation for new vehicles, costs related with personnel and the 2016 collective agreemen). The segment therefore reported a loss of CZK 342 million (EUR 12.6 million) . 

“In May 2016 we managed to increase the company’s Moody credit rating by one level to the level of Baa2 with a stable outlook. And from the perspective of creditors, Czech Railways operates like a standard corporation. The rating upgrade reflects the structural improvements in the operational management, in the debt and liquidity of Czech Railways. This is a two-years systematic work to improve the financial profile of the company, and goes hand in hand with improving services, increasing efficiency and of course with the successful operation of its subsidiaries, which contribute to achieving better results across the CD Group “, Krtek added. 

ČD Cargo’s net profit rose to CZK 427 million, from CZK 216 million a year earlier. 

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