České dráhy's loss grows to CZK 494m in H1

Prague, Aug 31 (CTK) - National rail operator Ceske drahy (CD) made a Kc494m loss in the first half of this year against a Kc109m loss seen in H1 2011 and EBITDA remained roughly at the same level of Kc2.9bn, CTK has learned from the company's half-yearly report published on CD's website.

"The group's current net loss of Kc494m has been caused by higher prices of inputs, weaker crown and increased costs of interest. Revenues planned for the second half of this year have not yet been reflected in the business results," deputy CEO for economics Michal Nebesky said in a press release.

Passenger transport, whose operating profit grew year on year, was more successful in the period. Its operating profit before tax and write-offs increased by 4 percent yr/yr to Kc860m but without taxes and write-offs, passenger transport sank into a Kc259m loss, he added.

Freight transport, represented by the firm CD Cargo, registered a fall in output by 3 million tonnes yr/yr and ended in a Kc46m profit, against a Kc54m profit in H1 2011.

This was due to the reduction of industrial and construction output and also in connection with lower demand for black and brown coal, coke, iron ore and iron scrap. On the other hand, transport of cars, cereals and food products grew, the company said.

Sales from passenger and freight transport, according to the published results, remained roughly at the same level as last year, growing by just 1.1 percent to Kc16.9bn.

Total operating revenues increased by some Kc1bn to almost Kc18.9bn. The growth was pulled in particular by the result of the firm CD - Telematica which develops railway information systems and by incorporation of new companies into the CD group.

They are, for example, travel agency CD Travel, transport educational institute DVI and operator of the Lovosice terminal CD Duss, Terminal.

Services in Ceske drahy's dining cars will be provided by the firm JLV, earlier Jidelni a luzkove vozy, for a further four years. The order that the years-long partner of CD has gained is worth Kc260m, Radek Joklik of CD's press department told CTK Friday, adding that CD would save Kc10m annually against the previous contract.

The group made a Kc491m profit last year after a previous Kc980.7m loss. The positive result was achieved mainly thanks to the sale of the SZDC railway infrastructure administration which generated Kc256m, and sale of other assets as well.