Czech Post Predicts Lower Operational Losses This Year

Novinky

The Czech Post anticipates an operational loss of around 310 million crowns this year, which is approximately 630 million crowns lower than the EBITDA drop last year. The projected loss is significantly less than the 1.5 billion crowns previously anticipated, including income from the sale of the main post office building in Jindřišská Street, which will not be completed this year. Miroslav Štěpán, the newly appointed deputy general director, made this announcement at a seminar on postal transformation in the Chamber of Deputies.

The company is implementing measures to reduce the loss this year and the next and to stabilize its operations. These measures include, among other things, the closure of 300 branches in mid-year, layoffs, property sales, and extending delivery times. Štěpán quantified the total contribution of these measures for this year and the next at 4.3 billion crowns.

“We continue in crisis management, which leads to the fact that the operational management of the Czech Post for 2023 and 2024 is secured. The Czech Post is not threatened with bankruptcy,” Štěpán stated.

Next year, MPs should approve a transformation law that will separate the parcel locker into an independent joint-stock company. The state enterprise Czech Post will maintain a branch network to provide state services. The payment for these services should no longer be limited to 1.5 billion Kč but should be paid quarterly. In 2025, the Czech Telecommunication Office (ČTÚ) should grant a new postal license. In 2025 and 2026, the post office expects positive operations.

As part of the transformation, a functional mechanism for drawing funds from external state or private sources into the transformation process and the development of postal activities should be created.

Next year, the Post Office will continue to convert branches into Partner Posts, which other entities will operate. It plans to convert 150 to 180 units. At present, there are more than 800 Partner Posts out of a total of 2,900 branches.