Income

Company’s income from operating activities totalled RUB 196.1 billion in the reporting period, up 7.1% on 2012 and 16.6% on 2011.

Changes in income by activity, RUB billion

Changes in income by segments, RUB billion

Income from Passenger Service

In 2013, income from passenger service reached RUB 175.4 billion, up 6.8% on 2012 and 16.3% on 2011.

In the deregulated segment (passengers travelling in lounge and sleeper cars as well as international passenger service), the Company earned RUB 88.5 billion, a 3.4% rise on the previous year’s figure, amidst a 5% increase in the price of seats in sleeper cars (the price of seats in lounge cars remained the same in 2013) and a 5.9% decrease in passenger turnover. Compared to 2011, income grew by 0.5%.

On March 1, 2013, the Company introduced a revenue management subsystem for the deregulated segment.

The implementation of that project resulted in a 109.7% rise in gross revenue in the regions where it was applied (RUB 1.2 billion in additional revenue), including 104.4% from passenger service (RUB 0.5 billion in additional revenue).

In addition, the following promotions were offered in 2013 in order to attract new passengers and improve revenues from sleeper cars in some of JSC FPC’s trains travelling across the country:

• Special rates on some days of the week (the promotion covered 32 routes, offering ticket price discounts of up to 5% depending on the day of the week all year round)
• Special rates depending on the time of purchase (the promotion covered 85 trains and included a 40% reduction of the price during the first 5 days from the start of the sale and a 20% reduction during the next 10 days; these discounts were offered in October and November and applied to tickets for national service trains, save for trains served by the RMS system, which offers a 50% price reduction during the first 15 days from the start of the sale and a 10% increase during the last 10 days, from December 1 to December 20)
• Special rates for upper berths in sleeper cars (the promotion covered 22 trains and included a discount from 10% to 50%; it was offered in October and November)

The promotions covered about 30% of the deregulated segment (1,666.3 thousand people); the discounts helped the Company attract additional 119 thousand people, while the special rates allowed it to receive RUB 160 million in additional revenue.

In the regulated segment (seats in second-class sleepers and standard cars), the Company earned RUB 77.7 billion, achieving a 12.6% rise through increased passenger turnover on 2012, a 6.4% in passenger numbers and a 20% increase in prices through indexation. Compared to 2011, income grew by 42.2%.

Income from carry-on baggage, unaccompanied baggage and mail totalled RUB 9.2 billion, down 3.8% on 2012 due to a 13.5% decline in the volume of baggage carried compared to the same period of 2012 and a 10% rise in the rates through indexation. Compared to 2011, income grew by 13.1%.

Breakdown of income from passenger service in 2011–2013, %

Breakdown of income from passenger service in the deregulated segment, %

Income from Other Sales

“Other activities” are an integral part of the Company’s business. They include, among other things, rolling stock repair and maintenance services and provision of non-carriage services in trains.

Income from other sales accounts for about 10.6% of the total income.

In 2013, income from other sales totalled RUB 20.7 billion, up 10% and 19% on 2012 and 2011 respectively.

The introduction of a revenue management system and sale of voluntary passenger insurance policies in JSC FPC’s ticket offices under agency agreements helped improve the results of other activities.

Average revenue per passenger, roubles

Changes in the structure of income from other sales in 2011–2013, %