Estonia, Financial Services, Legislation, Transport

The extremely big profit is a result of the entry in the company's accounts of renovated tram lines and new trams, the CEO of the company, Enno Tamm, told BNS on Wednesday. He said the requirement to reflect the profit accrued as a result of initial recognition of assets in the same period when the recognition took place arises from public sector accounting regulations. The operating profit of the company in the past financial year was 2.7 million euros.

Tallinna Linnatranspordi AS is about to record big profits also in the couple of next years, as in 2016, for instance, renovated tram tracks of the Kopli route will be entered into accounts. Soon after that the company will be recording losses each year as a result of the amortization of fixed assets, even though everything will be okay with cash flows, Tamm said.

"And then, five years from now, journalists will be calling to ask me why I'm so bad at managing the company," the CEO added.

The company's balance sheet total was 161 million euros, compared with 97.6 million euros at the end of 2015. The increase was mainly the result of an increase in fixed assets by 54.5 million euros.

Revenue of the company totaled 119.5 million euros and cash flows were positive by 2.7 million euros in 2015.

The volume of bus services grew by approximately 1.1% year over year, the volume of trolleybus services decreased by 3.8% and the volume of tram services by 15.1%.

The company had 451 autobuses at the end of the year and during the year 29 second hand and 44 brand new buses were bought. Trolleybuses numbered 75, 13 fewer than at the beginning of the year, whereas the number of trams was 78.

The number of employees as at year-end was 1,774, marking a reduction by 21 from the beginning of the year.