Money Buzz! Europa

Category: Prague

  • Czech Parliament approved the largest income tax cut in decades

    Czech Parliament approved the largest income tax cut in decades

    Czechia will cut the income tax next year, a measure that according to the Prague government would help the economy recover from the coronavirus recession, Bloomberg reports.

    The Parliament approved a reduction in income tax proposed by billionaire Prime Minister Andrej Babis, who wants to extend incentives beyond current measures such as paying wages for temporarily laid off workers and subsidizing small businesses.

    The Czech Ministry of Finance estimates that this change, which introduces a tax threshold of 15% for those on low incomes and one of 23% for those on high incomes, will reduce state revenues by about 80 billion kroner (3.6 billion dollars) next year, or 1.3% of GDP.

    The plan was criticized by Central Bank Governor Jiri Rusnok, who said it would create a long term hole in public finances.

  • Czechs living in the country’s largest cities have the highest purchasing power

    Czechs living in the country’s largest cities have the highest purchasing power

    Czechia has a per capita purchasing power of €9,179, which puts it almost 34 percent below the European average and in twenty-fifth place among the 42 countries in the ”GfK Purchasing Power Europe 2020” study.

    The capital city district of Prague once again tops the purchasing power rankings. Inhabitants of this district have €11,961 per capita available for spending and saving, which is more than 30 percent above the national average.

    However, the purchasing power of the inhabitants of Prague is still almost 14 percent below the European average.

    The two bordering districts of Praha-zapad and Praha-vychod also have above-average purchasing power, as does the Czech Republic’s second largest city, Brno-mesto. 

    There have been a few changes in the top ten this year, with Brno-mesto and Praha-vychod switching places three and four and Beroun, Hradec Kralove and Benesov also changing places in the rankings.

    A new entry this year is the district of Kladno, which secures the final place in the top ten with a per capita purchasing power of €9,328.

    Bringing up the rear in the district rankings is Jesenik in Northern Moravia, located on the border with Poland. The district’s inhabitants have a per capita purchasing power of €7,597, which is almost 83 percent of the national average and around 55 percent of the European average. 

  • Manufacture of Czech automobile Skoda Superb will move to Slovakia

    Manufacture of Czech automobile Skoda Superb will move to Slovakia

    By relocating the manufacture of the next-generation Superb from the Czech plant in Kvasiny to Bratislava in Slovakia, Skoda wants to free up the capacity in Czechia.

    After the move, scheduled for 2023, the development of the next-generation Superb will remain in Czechia.

    The extra capacity will be used to build additional cars like Skoda Kodiaq and Karoq SUVs and for another Skoda model.

    Skoda currently produces the Kodiaq and Karoq SUVs as well as the Superb and the Superb iV plug-in hybrid at its Kvasiny plant.

    This move is part of Volkswagen plan to abandon investment in Turkey and to expand production in Slovakia.

  • CEZ net income reached CZK 13.6 billion for the first three quarters

    CEZ net income reached CZK 13.6 billion for the first three quarters

    CEZ Group’s net income reached CZK 13.6 billion for the first three quarters of 2020, the same as last year.

    EBITDA reached CZK 50.9 billion for the first three quarters of 2020, rising by 14% year on year.

    The company expects its EBITDA for the entire year to reach CZK 64 billion, as the currently estimated overall negative impacts of COVID-19 amount to some CZK 3 billion.

    Operating revenues reached CZK 155.5 billion, increasing year-on-year by CZK 7.5 billion, i.e. by 5%.

    Increase of the amount of electricity generated by new energy sources

    The amount of electricity generated from traditional sources declined by 6% year on year, mainly due to growing prices of emission allowances, declining prices of electricity due to COVID-19 and also due to the timing of scheduled power source downtimes.

    The year-on-year decrease in electricity generation has also been intensified by suppression of soon-to-be-closed coal-fired power plants, especially by the closure of the Prunéřov 1 Power Plant.

    The amount of electricity generated by new energy sources increased by 7%, in particular due to good weather conditions in Germany and Romania.

  • Bonami expects sales of 2.5 million euros for Black Friday

    Bonami expects sales of 2.5 million euros for Black Friday

    Bonami expects sales of 2.5 million euros, of which 20%, 500,000 euros, on the Romanian market for Black Friday.

    During Black Friday discounts, Bonami records the highest sales in Romania, compared to all other countries where the company is present.

    The Black Friday season, which this year includes two weekends, 12-15.11 and 26-29.11, will start on Thursday at midnight and will end on Sunday.

    For the first weekend, in which Bonami participates in the Romanian Black Friday, there will be products with discounts of up to 80%.

    For traditional Black Friday, there will be a 15% discount on any product in the Bonami offer. Cyber ​​Monday will take place on Monday, 30.11.

    Compared to last year, the company doubled the number of unique products (SKUs) available for Black Friday from 20,000 to 40,000.

    Bonami continues the cashback campaign throughout November and December, so that any amount spent on Bonami.ro during this period, will be returned to customers on 24.12, in the shape of credit.

  • Prague based DDB launches specialized esports and gaming agency

    Prague based DDB launches specialized esports and gaming agency

    DDB Worldwide is launching DDB FTW (For The Win), the world’s first specialized esports & gaming network agency this month

    The agency’s head office will be located in Prague and led by CEO, Global Esports & Gaming Lead, Darko Silajdžić, with additional capacities run out of the DDB agencies in Amsterdam, Dusseldorf, Paris and Hong Kong.

    DDB FTW will provide global and regional esports and gaming solutions to current clients, and new partners.

    Says Glen Lomas, President of DDB, EMEA says: ”This category is not simply about playing Candy Crush or shooting games, it is a movement that spawns its own music, fashion, and language. Gaming platforms are a lifeline of social connection for people during these trying times, and we expect the trend to continue in a post-Covid world.”

    DDB FTW consists of passionate gamers from the DDB network covering various areas of expertise including strategy, creative, business design, innovation and tech.

  • Packeta to have up to 6.800 own pick-up points in Europe at the end of 2020

    Packeta to have up to 6.800 own pick-up points in Europe at the end of 2020

    Packeta Group is supposed to have up to 6.800 pick-up points at the end of this year. At the middle of September, the group had over 5.000 pick-up points.

    In January 2020, Packeta had over 4.000 pick-up points and since then, there was an increase by approximately 145 per month.

    Packeta pick-up points in CEE

    • Czech Republic: 3.433 pick-up points in September, over 4.000 at the end of this year;
    • Slovakia: 973 pick-up points in September, over 1.200 at the end of this year;
    • Hungary: 491 pick-up points in September, over 790 at the end of this year;
    • Romania: 186 pick-up points in September, over 800 at the end of this year;
    • Poland: 14 pick-up points in September.

    Additional 91.000 partner pick-up points

    For now, in countries where Packeta does not use its own pick-points, the goods are shiped to a wide network of partner pick-up points.

    The current number world-wide is more than 91.000. For example, only Russia has about 42.000, France has about 19.000 partner pick-up points and Ukraine has nearly 6.400. 

  • P3 Logistic Parks purchased 33 retail logistics assets in Germany

    P3 Logistic Parks purchased 33 retail logistics assets in Germany

    P3 Logistic Parks, a long-term manager and developer of European warehouse properties has signed an agreement to acquire a German retail logistics real estate portfolio (”Matrix”).

    Covering over 650.000 sqm of space, the Matrix portfolio comprises 33 retail logistics assets in prime urban locations in major German cities and towns, including Berlin, Dortmund, Nuremburg, Hamburg, Hanover, Cologne, Dresden and Leipzig.

    The portfolio will be managed by P3. The acquisition is expected to close during the fourth quarter of 2020, subject to customary closing conditions and any requisite regulatory approvals.

    This comes within 12 months of the acquisition of the Maximus portfolio comprising 28 assets located in core logistics hubs across Europe.

  • Macquarie Infrastructure to acquire CEZ Group assets in Romania

    Macquarie Infrastructure to acquire CEZ Group assets in Romania

    Macquarie Infrastructure and Real Assets today announced that has reached an agreement to acquire a portfolio of Romanian power assets owned by CEZ Group.

    The integrated energy infrastructure portfolio is comprised of an 86.665 kilometre regulated electricity distribution network and an electricity and gas supply business with 1.4 million residential and industrial connections in the South West of Romania.

    The acquired assets also include a renewable energy platform, with 622 MW of primarily onshore wind farms and plans to develop its portfolio further.

    The terms of the transaction have not been disclosed. Completion of the transaction is subject to receipt of customary regulatory approvals.

    MIRA is trusted to manage the operation and development of electricity distribution networks in Australia, Austria, Finland, Spain, and the United States.

  • Sharry to install advanced software into 23 skyscrapers in New York

    Sharry to install advanced software into 23 skyscrapers in New York

    Sharry, a Czech PropTech company, will be deploying its digital platform for modern office buildings in 23 high-rise buildings in New York.

    SL Green Realty has selected the solution for its portfolio to contribute to the protection of the thousands of people working in these high-rise buildings while preparing for the post-Covid era.

    Users can download a mobile application for the given building that gives them a mobile access card that will unlock the turnstiles in the lobby or the door to their office.

    Another solution being implemented is an innovative guest management system for visitors.

    ”A guest will receive a meeting invitation with a QR code, thanks to which under certain conditions they can get from the street to the given company’s reception desk without the need to be in contact with the receptionist in the building’s lobby”, says Ondřej Langr, Sharry product manager.

    For users, the mobile application offers a way to reserve any amenities as a shared terrace, gym, or electric scooter (if these features and services are available in the given building) directly from their mobile phone.

    The community section of the application operates as a virtual bulletin board where users can “pin” messages or invitations to events they are organizing.

  • PPF Group acquired Central European Media Enterprises

    PPF Group acquired Central European Media Enterprises

    PPF Group announces that its fully owned subsidiaries have completed the acquisition of Central European Media Enterprises.

    PPF now holds full control of CME’s operations in the Czech Republic, Romania, Slovakia, Slovenia, and Bulgaria.

    This transaction was subject to regulatory approval by the European Commission, national regulators in certain countries, and CME shareholders.

    Shares on the NASDAQ Global Select Market and Prague Stock Exchange have been delisted and now cease to exist following the completion of the acquisition.

    Holders of CME’s Class A Common Shares immediately prior to the effective time of the merger will receive $4.58 per share.

    Didier Stoessel is the new CEO

    Didier Stoessel will assume the position of chief executive officer at CME, responsible for the Czech, Romanian, Slovak, and Slovenian markets.

    Didier Stoessel has extensive strategic and senior management experience in media, technology, and global finance and previously worked for Modern Times Group, HSBC Investment Bank, and Merrill Lynch International.

    Lubos Jetmar has been named CEO CME Bulgaria responsible for operations, strategy, and growth development plans in Bulgaria.

    CME operates television stations in the Czech Republic, Romania, Slovakia, Slovenia and Bulgaria and is one of the leading media and entertainment companies in Central and Eastern Europe.

    CME broadcasts 30 television channels, both free and paid, and reaches a total of 45 million viewers.

  • Czech industrial production at -5.5% compared to 2019

    Czech industrial production at -5.5% compared to 2019

    Czech industrial production fell by 0.9% month-on-month and the year-on-year decline slightly increased to -5.5%, mainly due to weaker production in the automotive sector, an ING report shows.

    Since the start of the year, Czech industry has dropped by 12%.

    New orders in industry were also not favourable, as their year-on-year decline intensified from -3.6% in July to almost 10%, which was mainly driven by a decline in foreign orders (-11.1 YoY).

    ”Although September’s industry-leading indicators were rather positive, both in Czech industry as well as in Germany, the advent of the second wave of the epidemic will hamper further industrial recovery”, the report shows.

    From January to August, Czech industry fell by 12.2% year-on-year, but the overall decline should gradually fall below 10% by the end of the year, despite the second wave of the Covid-19 outbreak.