Czech Railways made a profit of CZK 3.8 billion last year, 3.4 billion more year-on-year

Commercial presentation Update: 25/04/2024 15:08
Issued by: 25/04/2024, 10:28

Prague – The Czech Railways (ČD) Group managed a profit of 3.8 billion crowns last year. Compared to the previous year, the result is 3.4 billion crowns better. At the same time, this is the best economic result of the group since 2008. The net profit of the group last year amounted to almost 3.2 billion crowns. In addition to freight transport, passenger transport was also profitable last year after three years of losses. Freight traffic turned positive in 2022. Czech Railways transported 164.4 million customers last year, an increase of 7.3 million year-on-year. Representatives of Czech Railways informed about this at a press conference today.

Last year, the parent Czech Railways reported a gross profit of three billion crowns, so they have the largest share of the profit of the entire group. The year before, they reported a gross profit of 14 million crowns. Passenger transport achieved a gross profit of 623 million crowns, 751 million crowns more year-on-year. According to the chairman of the board and CEO of ČD Michal Krapinec, the growth is due to the higher number of passengers, who increased sales by 1.3 billion crowns.

Interest in international transport also grew, by several tens of percent. Interest in traveling in first class increased by about a tenth. With more than 164 million passengers, the railways have covered over eight billion kilometers. Passengers also traveled longer distances last year, the average passenger traveled 49.1 kilometers by train last year.

Another part of the group’s gross profit was provided by the subsidiary ČD Cargo. In freight transport, it reported a profit before tax of 733 million crowns, which is a year-on-year increase of 423 million crowns, 326 million after tax. The improvement was brought about by an increase in orders abroad by tens of percent, especially at spin-off plants in Austria and Germany, and an increase in prices that compensated for the increase in rail transport costs. More than 60 percent of all shipments were international last year.

The company transported 59.4 million tons of cargo, i.e. 4.8 million tons less than the previous year. According to the chairman of the board and director of ČD Cargo, Tomáš Tóth, the decrease in transportation of fossil fuels to power plants and heating plants caused the lower transport performance. “In 2022, we transported 12 million tons of thermal coal, last year it was just under eight million,” Tóth said. According to him, the drop in transport is caused by the rapid decarbonisation of the sector. The structure of transported goods is also changing, he said. According to him, in addition to traditional commodities, ČD Cargo also focuses on the developing transportation of biomass, solid alternative fuels or waste. According to Tóth, these commodities could partially replace the transport of thermal coal.

In passenger transport, railways invested almost 11 billion crowns in new trains last year. Fifty new or modernized vehicles, 23 electric RegioPanters, 25 RegioShuttle RS1 motor cars or 12 Vectron locomotives were given the amount for the tracks. Last year, the railways commissioned motor-driven RegioFoxys and express ComfortJets. But they will take them over only this year. Railways received part of the investments from foreign sources, which slightly increased the company’s debt. “The share of debt to EBITDA operating profit, on the other hand, fell significantly,” said Krapinec.

The delivery of more than a hundred RegioPanter, RegioFox, ComfortJet and Vectron trains and locomotives is planned for this year. They are supposed to provide more than 22,000 new jobs. According to Krapinec, the new trains are a guarantee of higher demand for ČD, and the main share of the group’s profit last year is precisely the revenue from passengers, regions and the state. According to Tóth, ČD Cargo also invested in new trains, they purchased five locomotives.

More than half of the tickets were purchased by passengers online. Approximately 4,000 ČD train connections had the option of connecting to the Wi-Fi network last year, 900 are new. Last year, the railways also equipped 103 locomotives with the unified European ETCS security system worth 1.4 billion crowns, they said in the annual report.

The České drah Group consists of passenger carriers and ČD Cargo. The group also includes the Railway Research Institute, the data service provider ČD-Telematika, and the ICT service provider ČD Informationační systémy. The group employs more than 20,000 people, of which approximately 13,500 people work in passenger transport.

The gross profit of rival RegioJet should also be a record. According to preliminary unaudited results, the company operating trains and buses expects to exceed half a billion crowns, company spokeswoman Alexandra Janoušek Kostřicová said today.

CR Railway 2023 České dráhy OTVÍRÁK