RZD's total income increased by 1.3% year-on-year to Roubles 1796.2bn, with revenue from freight transport increasing 0.3% to Roubles 1168.8bn despite a 0.8% fall in loadings, zero-indexation of tariffs, and an increase in the share of low-margin freight. Logistics services reported a 23.5% increase in revenue to Roubles 221.3bn following rising incomes of subsidiary Gefco, in which RZD purchased a 75% stake in 2012. This segment's total share of revenues grew by 10.1% in 2014 to 12.3% in 2014.
Revenues from passenger traffic also increased by 5.1% in spite of a 7% fall in overall patronage following a 30% fall in international traffic.
Ebitda increased by 5.9% year-on-year to Roubles 352.6bn, while Ebitda profitability increased by 21.6% following cost optimisation, including a 0.5% reduction in the overall wage bill and social security payments to Roubles 697.5bn due to the outsourcing of some jobs, and the zero indexation of tariffs. Operating expenses increased by 1.1% compared with 2013 to Roubles 1714.9bn following an increase in the cost of depreciation and rising energy costs.
RZD's investments in capital projects fell from Roubles 548.7bn in 2013 to Roubles 461.8bn in 2014. However, the company says it is continuing to invest in schemes designed to enhance capacity and safety of the network as well as acquiring new locomotives.
