The past week in Hungarian economic terms: motorway concessions, gas cap, Foodpanda
See below main business and financial news from the previous week:
CONCESSION WINNERS TO TAKE OVER OPERATION OF 1,237 KM OF MOTORWAY
The operation of 1,237 km of dual carriageways in Hungary will be transferred to five companies as the result of a concession procedure called earlier by the government, state roads company Magyar Közút Nonprofit said. MKIF Magyar Koncessziós Infrastruktúra Fejlesztő, AKA Alföldi Koncessziós Autópálya, M6 Duna Autópálya Koncessziós, M6 Tolna Autópálya Koncesszios and MAK Mecsek Autópálya Koncessziós will take over the operation of the motorways from September.
GOVT RAISES HEAT VALUE THRESHOLD FOR AVG GAS CONSUMPTION
Hungary’s government decided to raise the heat value threshold for regulated price gas consumption to 63,645 MJ/year, Gergely Gulyas, the head of the Prime Minister’s Office, said at a weekly press briefing. The threshold was raised from 59,132 MJ/year. Mr Gulyas said the adjustment reflects the varying heat values of gas used by Hungarian households, depending on whether it comes from Russia or sources in the West or is domestically produced.
RÁBA BOOKS H1 LOSS AS MARGINS NARROW, FINANCIAL LOSS WEIGHS
Hungarian automotive industry company Rába booked a first-half loss of 252 million forints as inflation squeezed margins and financial losses weighed, an earnings report showed. Revenue rose by 27 percent to 30.0 billion forints, but direct costs of sales climbed 31 percent to 24.7 billion forints. Other operating costs jumped 52 percent to 4.6 billion forints. A financial loss of over 0.9 billion forints bit into the bottom line.
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Rába said wartime inflation lifted all cost elements and exerted “record pressure” on the efficiency of operations.
CONTINENTAL DOHÁNYIPARI TO INAUGURATE HUF 10 BN EXPANSION IN DECEMBER
Hungarian-owned tobacco company Continental Dohányipari said it will complete a 10 billion forints upgrade and expansion at its base in Satoraljaujhely, in north-eastern Hungary, in December. Continental Dohányipari will start installing new production equipment and upgrading old equipment in a new 5,4000 sqm plant in September. When completed, the investment will boost capacity by around 25 percent.
CIG PANNONIA PREMIUMS REVENUE CLIMBS 37 PC IN H1
First-half gross written premiums of listed insurer CIG Pannonia rose by 37 percent year-on-year to 15.0 billion forints, an earnings report showed. CIG Pannonia said premiums growth of comprehensive vehicle insurance for corporate fleets was over 1 billion forints, while revenue from premiums for unit-linked policies increased more than 1.1 billion forints and climbed close to 1.2 billion forints for industrial property policies. Growth was supported by the relaunch of CIG Pannonia’s general insurance business EMABIT.
FOODPANDA TO RAISE COURIER PAY AS TAX CHANGE COMES INTO FORCE
Food delivery company Foodpanda said it will raise couriers’ remuneration by 18 percent on average. Foodpanda said it gave couriers’ pay “a rethink” after amendments to legislation on the Itemised Tax for Small Businesses (KATA). Lawmakers voted earlier in the summer to restrict KATA to sole proprietors.
