PPF's net profit rises to EUR1.45bn in 2023 from EUR164m in 2022

Prague, May 14 (CTK) - PPF group recorded a net profit of EUR1.45bn (some Kc36bn) last year, its best financial result since 2008 when it booked gains from a transaction with Italian insurer Assicurazioni Generali and an increase from 2022's EUR164m (roughly Kc4bn), PPF told CTK in a press release today.

Telecommunications companies, banks, and TV stations in all the markets where PPF operates drove the 2023 extraordinary result. One-off gains from the sale of Home Credit in the Philippines and Indonesia also played a positive role.

PPF's assets increased by 9 percent to EUR43.5bn (roughly Kc1,100bn).

"I am proud of the joint work of our teams, which drove our excellent performance last year. I am also pleased that, thanks to our new investments, we have built a strong foundation for the group's further development in the coming years," said the group's CEO Jiri Smejc. According to him, 2022 was negatively affected by the exit from the Russian market.

"Companies did well across sectors last year. The telecoms division made a profit of around EUR540m last year, while the financial division made a profit of EUR580m," added PPF group CFO Katerina Jiraskova. Smejc said he particularly appreciated the fact that the vast majority of companies had managed to increase their competitiveness last year.

PPF investment group operates in 25 countries in Europe, Asia and North America. It invests in financial services, telecommunications, media, biotechnology, real estate and engineering.

The group includes consumer finance provider Home Credit, Air Bank, the telecommunications companies Cetin and O2, the media company Central European Media Enterprises (CME), the real estate group PPF Real Estate Holding, the engineering company Skoda Group and the Czech toll operator CzechToll.

Given the increase in geopolitical risk in recent years, PPF will continue to focus on developed Western markets, Smejc told reporters today. The group is abandoning its operations in Asia and Russia and is considering expanding into North America, he said, adding that PPF's strategy committee, of which he is a member, has confirmed that the group's strategy is correct.

However, the European and Czech economies lack a longer-term political vision that would allow for greater structural changes, he said.

Smejc also ruled out that PPF would sell Air Bank. According to him, the bank could be the largest in the Czech banking market in terms of current transactions of retail clients within three years. The PPF group had previously planned to merge Air Bank with Moneta Money Bank, in which it is also the largest shareholder.

vr,hel/er