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Czech Republic: Railway company Ceske drahy with profit for first time

January 2008.

Czech railway company Ceske drahy generated a preliminary profit of CZK 50m (EUR 1.93m) in 2007, its first profit ever, CEO Josef Bazala said.

"The plan for CZK 50m profit will be fulfilled. Eleven-month profit was slightly above CZK 50m, and we expect it to remain there," said Bazala.

CD received CZK 3.4 billion (EUR 131m) last year for passenger transport from the Transport Ministry, CZK 950m (EUR 36.7) than the year before.

Bazala said the company's results improved particularly thanks to increased volume of cargo as well as higher passenger numbers.

Freight transport sales increased by 5 percent to CZK 15.6 billion (EUR 602.9m) , as CD transported 92 million tonnes of cargo, 4 percent more year-on-year.

The number of passengers rose by 1 percent to 184 million, and passenger transport sales were 8.5 percent up at over Kc5.5bn.

Bazala said the company will remain in the black despite the spin-off of cargo transport as of early December 2007.

Source: Railway Market
CD also raised fares in December. "Revenues in December were Kc40m to Kc50m higher than in December 2006," said Bazala.

Ceske drahy is undergoing radical restructuring.

Besides the spin-off of cargo transport, and 13,000 staff, into an independent CD Cargo joint-stock company, rail maintenance, and 10,000 staff, will be taken over in April by Sprava zeleznicni dopravni cesty which owns the tracks.

By 2010, passenger transport will separate from the parent company as well.

With the spin-off of CD Cargo Ceske drahy has been deprived of the profits from freight transport which it used to cover losses from passenger transport. The Transport Ministry will raise its contribution to CD by CZK 700m  (EUR 27m) this year. The business plan for this year foresees neither profit nor loss.


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