|
Unit |
1st HY |
1st HY |
Change |
||||
Total sales |
EUR mill. |
71.5 |
68,0 |
5.1% |
||||
EBIT |
EUR mill. |
6.1 |
4.6 |
32.6% |
||||
Investments in property, plant and equipment and intangible assets |
EUR mill. |
3.1 |
1.5 |
106.7% |
||||
Workforce (on average) |
FTE |
1,579 |
1,539 |
2.6% |
||||
Invoiced drinking water volume |
m3 mill. |
23.7 |
22.2 |
6.8% |
||||
Invoiced waste water volume |
m3 mill. |
22.2 |
21.9 |
1.4% |
General conditions in the water sector
In the Water Segment, the favourable macroeconomic conditions are reflected in a positive sales development and in the increasing services business order volumes. However, this extremely positive economic development drives competition on the labour market, as is reflected in the unemployment rate in the Czech Republic – the lowest in the European Union. This situation on the labour market is particularly challenging in view of the high average age of the Czech subsidiaries' workforce.
There were no significant changes as part of the annual adjustment of the pricing regime in the Czech Republic, which focuses on the appropriate profit of operating and infrastructure companies.
The Czech koruna remained largely stable in the first half of the 2018/2019 fiscal year.
Business development in the Water Segment
The sales revenues in the Water Segment for the first half of 2018/2019 totalled EUR 71.5 million and were thus 5.1% higher than the previous year's value. The EBIT in the reporting period totalled EUR 6.1 million and was therefore about one third (32.6%) up on the previous year (EUR 4.6 million).
In operational terms, growth was achieved in the core business areas of drinking water supply and waste water disposal. Operational service sales revenues were above the previous year's level. Again growth was achieved in construction assembly services and in wholesale revenues.
In the Water Segment, a total of 23.7 million m3 of drinking water and 22.2 million m3 of wastewater were invoiced; this is equivalent to a slight increase on the previous year's figures. As at 31 March 2019, around 920,000 inhabitants were supplied with drinking water; wastewater disposal was handled for around 710,000 customers.
Invoiced drinking water volume
m3 mill.
Invoiced waste water volume
m3 mill.
Stable development in the Czech Republic
Like every year, fee negotiations with the municipal contracting parties were scheduled for numerous operator contracts during the reporting period. Smaller bidding procedures will be taking place in a number of supply areas in the course of the fiscal year. The number of operating contracts has grown by five to 657 since the beginning of the fiscal year.
In the area of research, development and innovation, the focus is on reducing non-revenue water as well as on digitalising operations and customer services. Significant projects were implemented in each of these areas. For the first time in the Czech Republic, area-wide water leak detection was carried out using satellite technology in the Beroun district. In the smart water meter sector, the Water under Control application developed in Budweis is a trend-setting solution for water customers and suppliers; it is already developing excellently shortly after the public presentation.