Czech Post generated profits in 2015.

The amount was tweeted by Martin Elkán, Czech Post’s Director General, on https://twitter.com/MartinElkan/status/724564275696668672.

The amount of consolidated profits before taxation also includes the compensation for state-subsidised universal services provided by Czech Post on behalf of the Czech government. The amended Postal Service Act sets the maximum compensation for 2015 at CZK 700 million. The payment of the amount, which requires the prior consent of the Czech Telecommunication Office, must be included in the income for 2015 pursuant to the current accounting and tax legislation.

“The amended Postal Services Act corrected the previous unfair circumstances under which Czech Post was required to provide universal services ordered by the government without any compensation,” commented Martin Elkán, Czech Post’s Director General on the profits. “This enabled us to begin to invest into areas which have most needed it. After seven years, we were able to increase tariff wages, invest into branch offices and replacement of computers, printers and other equipment,” he emphasised.

In 2015, Czech Post saved tens of millions of CZK in the area of overhead costs, IT, and - thanks to their low prices - fuel and energy costs.

Money order services, collaboration with alliance partners, and payment of pensions were among the profit-generating segments.

Additional information:

Although Czech Post has been operating on a fully liberalised market since 2013, unlike its competitors it has had the legal duty to provide universal services. The initial model of a compensation fund, created from contributions made not only by Czech Post’s competitors but also by Czech Post, did not work. It meant that Czech Post would have to compensate itself for most of its services. The amended Postal Services Act called for by both Czech Post and its competitors corrected the market conditions by ensuring that the state-owned company will be compensated directly from the state budget. This will provide Czech Post with finances to which it is entitled and which correspond to the costs of the provided universal services.