Business News


Rail Operator Exceeds Q3 Plans, Still Posts Loss

Ljubljana, 27 October (STA) - Slovenske zeleznice, the state-owned rail operator, posted operating revenues of EUR 256m January through September, 3.4% above plans, and ended the third quarter with an operating loss of EUR 3.8m and net loss of EUR 8.7m.

The net loss is well below plans, as it was expected to reach EUR 23.5m. Last year the rail operator posted a net loss of EUR 30.8m for the first three quarters, the company said on Wednesday.

At the end of the year the company expects a net loss of EUR 17m, but taking into account extraordinary expenses such as layoffs, it will top EUR 25m.

One major factor behind the loss will be the bankruptcy of subsidiary A.K.S., which has been determined by Slovenske zeleznice's supervisors to be insolvent.

A.K.S. is a joint venture with a privately-held company which bought land from the rail operator near the Ljubljana train station to build a parking garage and office buildings.

There have been media reports on alleged irregularities at the firm involving the relationship between Slovenske zeleznice and the private investor. The parking garage project has not been launched yet, leaving the company saddled with debt, reports said.

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