PPF net profit doubles to €834 million in first half of the year

The PPF investment group, controlled by the family of Renata Kellnerová, more than doubled its net profit in the first half of the year. It reached €834 million, or more than 20 billion crowns. A year earlier the figure stood at €325 million, so the year-on-year increase came to 157%.

Operating income grew even faster, by 28%, to €2.35 billion. Telecommunications and financial services remained the main pillars of the results.

The telecom division posted operating profit (EBITDA) of €1.12 billion, compared with exactly one billion a year earlier. Net profit in financial services rose almost fivefold to €301 million; PPF attributes the jump to its focus on European markets.

Engineering also saw a marked turnaround. A growing order book helped Škoda Group reach a record result, and the whole engineering segment earned €60 million in net profit, compared with only five million in the same period last year.

Real estate contributed as well: the segment brought in €75 million, partly thanks to the sale of a stake in a London hotel asset, a positive revaluation and the performance of its portfolio in Europe and the US. The media division posted OIBDA of €140 million, one million more than a year ago.

“The first-half results confirm the value of our diversified portfolio and long-term investment strategy,” said PPF co-CEO Kateřina Jirásková. The other chief executive, Didier Stessel, noted that higher profitability gives the group room for organic growth and new investments.

The group’s financial position strengthened, although total assets dipped slightly. Equity has risen 6.9% since the end of last year to €12.57 billion, while assets fell 1.2% to €42.09 billion.

This is PPF’s first half-year report since its parent holding company moved from the Netherlands to Czechia, a process completed on April 1. PPF now operates in 25 countries and, besides telecommunications and banking, invests in media, e-commerce, real estate, engineering and biotechnology.