Money Buzz! Europa

Category: Prague

  • 10.8 kilometers of a main Czech railway line will be refurbished

    10.8 kilometers of a main Czech railway line will be refurbished

    Two years from now, trips from Czechia to Poland by train will become faster, safer and greener after a refurbished section from Dětmarovice to the Czech-Polish border, via Petrovice u Karviné.

    The project is part of an investment programme aiming at removing bottlenecks along the main railway corridors in the Czech Republic, co-financed by a Connecting Europe Facility (CEF) grant and EIB loan.

    It comprises the modernisation of eight railway sections located on the core network corridors of the country.

    In total, 10.8 kilometres of the railway line will be refurbished for an investment cost of nearly CZK 3 billion.

    The reconstruction project officially started on 25 September 2020

    Along with an electrified double-track section on the transit railway corridor from Dětmarovice to the Czech-Polish border via Petrovice u Karviné, the single-track connection between the Závada and Koukolná branches will also be renovated, making it possible to travel by train from Poland to Karviná without ‘zig zag’.

    Thanks to the improvement of railway substructure, track structure and bridges, trains will no longer have to slow down from 100 to 65 kph in the Petrovice u Karviné station.

    State-of-the art safety equipment will be installed along the entire section, including the stations and railway crossings.

    The project will also include the reconstruction of the overhead lines and installation of new lines where needed. The power supply station in Petrovice u Karviné will also undergo refurbishment, thus improving its energy efficiency.

  • Czechia to build a canal that will link the Danube to the North Sea

    Czechia to build a canal that will link the Danube to the North Sea

    The Czech government has approved the first phase of a canal that will connect the Danube and the North Sea, Czech Industry and Trade Minister Karel Havlícek announced on Monday, as Radio Prague International reported.

    The total cost would be about 15 billion CZK and construction work could begin in 2030.

    Unlike the original plan, which aimed to connect the Danube, Oder and Elbe rivers, a study by the Czech Ministry of Industry and Trade relies solely on connecting the Danube with the Oder.

    The first phase of the project involves improving the infrastructure between the Czech city of Ostrava and the border with Poland, where the future canal would connect the Polish section to Kozle, at the intersection of the Oder and Klodnica rivers.

    Subsequently, this first section of the canal would be connected to the Danube. The original plan to connect the canal to the Elbe River appears to have been abandoned by the Czech Ministry of Industry and Trade because it was considered less economically viable.

    Karel Havlícek stressed that the results of the studies show that the project is both realistic and beneficial for the surrounding region.

    For example, it will provide easier access for local industry to European and global markets as well as opportunities for the tourism sector.

  • The Czech economy recorded a record decline in the second quarter

    The Czech economy recorded a record decline in the second quarter

    The Czech economy contracted by 10.9% in the second quarter of 2020, the most severe decline in the country’s history, according to revised data released by the Czech Statistical Office.

    Czechia’s GDP is expected to decline between 6% and 8% this year, followed by an advance of 3.9% next year.

    Amid the pandemic crisis, the deficit target has been set at 500 billion Czech crowns, or 8.8% of GDP, from the initial target of 40 billion Czech crowns, but the budget is on schedule for a deficit of 400 billion Czech crowns.

    Monthly income from employment decreased by 7.1%

    The average monthly income from employment reached CZK 34.142 in the Q2 and it decreased in real terms by 7.1%, compared to last quarter.

    In the year-on-year comparison it was 7.4% down.

    The significant decrease of income from employment reflected shutdown of production and closure of some (business) establishments/premises due to coronavirus pandemic.

  • Czechia: Unemployment rate reached 2.8% in August 2020

    Czechia: Unemployment rate reached 2.8% in August 2020

    The employment rate of the aged 15–64 years, reached 74.4% in August 2020 and decreased by 0.8 percentage point compared to that in August 2019, latest Czech Statistical Office data show.

    The male employment rate was 81.3%; the female employment rate was 67.2%, both seasonally adjusted.

    The employment rate of persons aged 15–29 years, seasonally adjusted, was 46.0%, in the age group 30–49 years it attained 87.0%, and in the age group 50–64 years it got to 76.7%.

    The general unemployment rate of the aged 15–64 years reached 2.8% in August 2020 and increased by 0.8 p.p., year-on-year.

    The male unemployment rate, seasonally adjusted, attained 2.7%; the female unemployment rate reached 2.8%.

  • Bonami to open at least 26 new stores until the end of next year

    Bonami to open at least 26 new stores until the end of next year

    Bonami opened its first two physical stores in Prague this year, and the network will expand rapidly this year beyond the Czech Republic, in the main cities of the countries where Bonami is present.

    Bonami plans to open 6 more stores by the end of the year and 20 in 2021.

    ”For the next period, the priority is to open as soon as possible a wide network of stores, which also serve as showrooms and as order pick-up points, first in Slovakia and Hungary, followed by Romania and Poland”, said Pavel Vopařil, Bonami CEO.

    In addition to these services, the company has inaugurated its own transport network, dedicated especially to large pieces of furniture.

    Launched in spring, the service proved to be a real success from the first months of operation, and was rapidly expanded, with deliveries now being made in Prague, Bratislava and Budapest, and in the near future in Bucharest.

    Regarding the forecast for 2021, an increase of 35% is expected. ”We expect a turnover of 100 million euros, of which 13 million on the Romanian market,” said Pavel Vopařil.

  • The pandemic severely impacted Home Credit Group’s new loan volumes

    The pandemic severely impacted Home Credit Group’s new loan volumes

    The pandemic severely impacted Home Credit Group’s new loan volumes, resulting in a 44% year-on-year decline in new loan volumes to EUR 5.9 billion in first half 2020.

    As a result, total consolidated net loans declined 20.0% in the six months to 30 June 2020 to EUR 16.2 billion.

    Home Credit operating decreased to EUR 1.9 billion for the first half, compared to a 20% decrease in net loans.

    In the second quarter, the group’s operating expenses were 17.4% lower compared to the final quarter of 2019.

    During the first half, the NPL ratio increased slightly to 6.2% from 5.6% at the end of 2019 and as at the end of June, the group had 10.3% of its loan portfolio subject to payment holidays.

  • CEZ obtained a permit for further operation of Temelín Nuclear Power Plant

    CEZ obtained a permit for further operation of Temelín Nuclear Power Plant

    CEZ received a permit from the State Office for Nuclear Safety (SÚJB) for further operation of Unit 1 of the Temelín Nuclear Power Plant.

    The operation permit is subject to regular ten-year cycles, during which Czech nuclear power plants must demonstrate that they meet all the conditions related to their safe operation.

    The documentation handed over alone contained 163.000 pages of professional documents.

    A team of experts has been working on the renewal of the permit to operate the first unit since the end of 2018. Among other things, they had to supply the state office with twenty so-called proofs.

    In practice, it has always been an extensive package of documentation, assessments, plans, and analyses.

  • Parkopedia info about parking spaces, available on Skoda’s Connect App

    Parkopedia info about parking spaces, available on Skoda’s Connect App

    Skoda drivers now receive enhanced support in their search for vacant parking spaces, after the Czech car manufacturer has concluded a cooperation agreement with Parkopedia.

    As a result, Skoda drivers have access to real-time information on millions of parking spaces throughout Europe, which is displayed via the vehicle’s navigation system or the Skoda Connect App.

    Hans Puvogel, COO of Parkopedia says: ”We are delighted to offer ŠKODA our premium parking services in Europe across multiple platforms. This agreement is one more example of how Parkopedia delivers seamlessly integrated parking experiences.”

    Founded in 2007, Parkopedia provides detailed information on more than 70 million parking spaces in 15.000 cities and 89 countries worldwide.

    These include multi-storey car parks, public and private parking facilities.

  • Daniel Kretinsky achieved a 3.05% stake in J. Sainsbury

    Daniel Kretinsky achieved a 3.05% stake in J. Sainsbury

    Czech billionaire Daniel Kretinsky is the fourth largest Sainsbury shareholder, expanding a portfolio of retail investments, says Reuters.

    The stake is held by Kretinsky’s VESA Equity Investment.

    VESA’s portfolio also includes stakes in U.S. retailer Foot Locker. It took a 5% stake in department store chain Macy’s in May but reduced it shortly after and now holds 0.67%.

    Also, VESA raised its stake in French retailer Casino CASP.PA in March to 6.88% and is the biggest shareholder in Britain’s Royal Mail, with a 13.1% share.

  • Mojca Mia Berger is the new CFO of Slovenian paper mill Vipap Videm Krško

    Mojca Mia Berger is the new CFO of Slovenian paper mill Vipap Videm Krško

    RIDG Holding Group, the new Czech owner of Slovenian paper mill Vipap Videm Krško, continues to restructure and modernize teh company.

    The top management is newly expanded by Mojca Mia Berger, the new CFO, and Aleš Lavrič, Director of Logistics.

    Last November, the company appointed the new CEO Petr Domin, and in March it introduced the new HR Director Vesna Kemper.

    The new management aims to streamline the operation of the company and to increase its flexibility, the level of education of its employees, and the profitability of the company.

    Who is Mojca Mia Berger

    Mojca Mia Berger has previously worked as the Head of Finance & Controlling for American & Efird (A&E Europe). She has extensive experience not only at the local but also at the regional level.

    During her 20-year career, she has held senior positions in the finance departments of Hewlett-Packard, Knauf Insulation, and the Imperial Tobacco Group.

    Mojca Mia Berger graduated from the Faculty of Economics at the University of Ljubljana.

    “I am glad to expand Vipap’s management and participate in the development of its strategy, including restructuring and subsequent optimization… I will primarily focus on improving work with data and the management information system,” Mojca Mia Berger explains her role at Vipap Videm Krško.

    New investments in the paper mill

    The company’s latest investments in the paper mill include the installation of a new WIN CC operating system in machines or the modernization of a cutting unit worth € 350.000 (more than CZK 9 million).

    Last year a new bearing roller worth € 89.500 (almost CZK 2.5 million) was installed, and this April also a second support roller with a new elastic lining worth € 47.500 (over CZK 1.2 million).

    These investments are among the key steps that are turning Vipap Videm Krško into one of the most modern paper mills in Central Europe.

  • In Czechia you can travel from door to door without needing to own a car

    In Czechia you can travel from door to door without needing to own a car

    Customers of Skoda DigiLab and rail and coach operator RegioJet in the Czech Republic can travel from door to door with ease without needing to own a car.

    For journeys from their homes to a coach or train station, or from there on to their destination, RegioJet customers can now hire a BeRider eScooter and/or a vehicle from the HoppyGo peer-to-peer car-sharing service.

    How it works

    When purchasing a RegioJet coach or train ticket, customers can register for Skoda DigiLab’s eScooter-sharing service, BeRider.

    Following confirmation, they will be emailed a code which entitles them to use the city scooters free of charge for 60 minutes.

    BeRider has just started its second season in Prague and the number of users is growing: the eScooters have already covered a total of over 500.000 km and, to date, 80.000 people have downloaded the app.

    RegioJet and Skoda DigiLab have then incorporated the HoppyGo private peer-to-peer car-sharing service in a similar way.

    Newly registered HoppyGo users receive a 500-koruna credit for travelling with RegioJet that they can use to rent a car.

    Customers can, for example, make their way to the station using a shared car, park it there in a planned allocated space and continue their journey by coach or train.

  • EPH sells two heat suppliers from Budapest and Prague to Veolia

    EPH sells two heat suppliers from Budapest and Prague to Veolia

    Czech company EP Infrastructure, part of EPH group, sold its approximately 95.62% share in Budapesti Erőmű Zrt. (BERT) and its 100% share in Pražská teplárenská to Veolia.

    BERT is the largest heat producer in Budapest. The company, owning three gas cogeneration sources (with an output of 1,402 MWt / 396 MWe), is covering 56% of the heat consumption of FÖTÁV Zrt., a municipal district heating network operator owned by the city of Budapest.

    Pražská teplárenská, a.s. operates the largest district heating network in the Czech Republic (550 km, 230,000 households).

    It supplies heat for the right-bank part of Prague and in 2019, its operational profit reached approximately CZK 5 billion and the company employed 411 people.