Income from other operations
In 2018, the Company’s income from other operations rose by nearly 5% y-o-y to RUB 213.3 bn.
While its profit amounted to RUB 25.1 bn, down by 11% y-o-y. This was largely the result of the following factors:
- no indexation of rolling stock leases for suburban passenger companies (RUB 1.7 bn);
- depreciation restored to support long-term tariff regulation for electricity transmission to third-party consumers (RUB 1.7 bn);
- peak in rolling stock overhaul volumes (RUB 2 bn);
- information services rendered to freight operators free of charge (RUB 0.5 bn);
- changes to tax laws (RUB 0.5 bn).
Excluding the above factors, the Company’s profit increased by 17% y-o-y.
In 2018, given that low-margin services and regionally regulated services account for more than 61% of the Company’s income, the above factors were offset by expanding and actively promoting its services portfolio.
In 2018, the key drivers boosting other sales included:
- economic use of inefficient social assets and utilities;
- higher efficiency of passenger services;
- increased share of high-margin cargoes in total handling volumes;
- sale of scrap metal;
- measures taken to improve the asset management efficiency, including the commercialisation of additional facilities.