Bucharest subway operator expects 50% higher losses this year

Bucharest subway operator Metrorex reported a negative result of RON 194 million (EUR 40 million) last year and estimates RON 305 million (EUR 64 mln) losses this year, according to the draft budget published for debate by the Transport Ministry, its majority shareholder.

The company explained that lawsuits mainly caused last year’s losses while the losses this year are an effect of insufficient subsidies, local News.ro reported.

Metrorex has budgeted for this year total revenues of RON 1,991 million (EUR 419 mln) and expenditures worth RON 2,295 million (EUR 483 mln).

“The company projects losses for the year 2019 since the grant allocated (RON 375.3 million) accounts for only 55% of the required amount (RON 680 million), meaning that the costs related to the company’s main activity will not be fully covered,” the document reads.

Out of the total expenditures, salary expenditures are estimated at RON 584 million. The company will increase its average number of employees from 4,402 in 2018 to 5,033 in 2020, as the new line (Eroilor - Drumul Taberei) will begin operations in the last quarter this year.

(Photo source: Metrorex.ro)