ČD Group’s Economic Result in the First Half of the Year Improved by Almost CZK 2 billion Year-on-Year

The České dráhy Group reported a profit before taxation amounting to CZK 987 million in the first half of 2023 under the International Financial Reporting Standards (IFRS). The Group’s economic result thus improved by more than CZK 1.9 billion year-on-year. The positive result was mainly driven by the return of passengers back to trains, a calming energy market and a stronger Czech crown. Compared to the same period last year, it is in particular the passenger transport segment that improved very much and turned a profit. However, in addition to the parent company, other companies within the Group also performed well and contributed significantly to the year-on-year improvement.

In the first half of the year, both passenger and freight transport, as well as all other segments achieved very good results, thanks to which total revenues for the ČD Group increased by more than CZK 3 billion year-on-year. “The half-year figures are excellent news for the ČD Group. The past three years were very challenging, whether we were dealing with covid, the war in Ukraine or the huge increase in energy prices. Within the framework of the Group, this had an impact mainly on passenger transport, but freight transport was not any easy business either. But now it is already possible to state that we have successfully overcome the difficult period and a new stage is ahead of us, when we can focus again on the development of the company, its growth and further modernisation and investment,” says Michal Krapinec, Chairman of the Board of Directors and Director General of České dráhy.

Passenger transport

In the first half of 2023, the number of passengers on trains of the national carrier increased by 4 million year-on-year. In total, České dráhy transported 79 million people during the first six months of this year (year-on-year growth of 6%). The positive development in the areas of passenger transport was reflected in the growth in ticket sales revenues which amounted to CZK 4.6 billion (year-on-year + CZK 697.4 million, i.e., +18%). There was also a slight increase in the field of transport output. This is 3.6 billion passenger-kilometres for the first half of the year, which is about 10 million passenger-kilometres more than in the first half of last year. There has been a significant improvement in international transport, where revenues increased by more than CZK 250 million (+35%) year-on-year from January to June 2023.

“The biggest growth of transport figures can be observed on international routes. We are already now carrying more passengers there than in 2019. The recovery is mainly driven by tourists from abroad, including those from overseas,” adds Michal Krapinec. In regional transport, we can see an increase in the number of passengers on integrated transport tariff systems as a consequence of their expansion in other regions.

The major modernisation of the regional transport rolling stock across all regions continues as well. In the first half of the year, about one half of the approximately 80 trains which the company plans to put into service this year have already been put into operation. These are mainly RegioPanter and RegioFox units. In 2024, the next innovation will be the deployment of new ComfortJet train sets on long-distance services.

Freight transport

Freight transport contributed with a profit before taxation amounting to CZK 481 million to the Group’s consolidated result.

“ČD Cargo continues to successfully expand abroad, with a significant increase in transport outputs in a year-on-year comparison, which contributed in a significant way to our positive results. On the domestic market, on the other hand, transport performance decreased due to the current situation in the energy sector and unfavourable development trends in some industrial sectors. Today we are a ČD Cargo Group operating in seven European countries and we are able to respond better to the changing market situation in the Czech Republic and to use our capacities efficiently in foreign countries, which is also reflected in our results. As far as the domestic market is concerned, we experienced the most significant decline in the area of transport of brown coal and lignite, iron and mechanical engineering products, construction materials and also timber in association with the receding bark beetle calamity. On the other hand, a positive development can be observed in the area of transport of fuels, combined transport, and at the end of the first half of the year also the automotive industry experienced a gradual increase in transport volumes,” says Tomáš Tóth, Chairman of the Board of Directors of ČD Cargo.