On 6 September, the Prague 9 District Court ruled in favour of the Prague Public Transit Company (Dopravní podnik hl. města Prahy – DPP) in the dispute concerning the validity of the contract with Rencar (JCDecaux Group) regarding the lease of advertising space on DPP property. According to the court, the contract is invalid. This ruling is a breakthrough in efforts to end what DPP has for many years considered to be disadvantageous cooperation responsible for its losing millions of euros annually.
“We welcome the court’s ruling today and are pleased that the Prague 9 District Court has arrived at the same conclusion that DPP reached a long time ago and that the courts first confirmed already in 2009. That is: the contract with Rencar is invalid,” said Petr Witowski, Chairman of the Board of Directors and CEO of DPP. DPP has been trying for many years to end the disadvantageous cooperation with Rencar – cooperation that is responsible for DPP losing millions of euros a year.
DPP will continue to maximise the earnings it has been managing to achieve from advertising in recent years due to the transparent tenders it has been calling.
The long-criticised contract was concluded in the 1990s for an unbelievable 34 years. It allowed Rencar to advertise on more than 130 000 spaces owned by DPP for a fee of less than EUR 1.9 million a year. According to the expert opinion commissioned by DPP, such advertising space should be generating at least double the revenue for the city’s largest company. A few years ago, DPP began discovering the potential of the advertising space in its ownership and made the decision to utilise it. Since then, DPP has successfully tendered new contracts for the lease of advertising space on 300 buses, 80 trams and other media, such as CLV panels. Thanks to these tenders, the company has been generating additional revenue of EUR
2.1 million a year. That is more than Rencar has paid for leasing the more than 130 000 remaining spaces.
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Prague Public Transit Co. Inc. (Dopravní podnik hl. m. Prahy, akciová společnost)
The Prague Public Transit Company is the largest urban mass transit operator in the Czech Republic. It operates 141 bus lines, 25 daytime and 9 night-time tram lines and 3 metro lines. As of 1 January 2019, the company owned 1 162 buses, 865 trams wagons and 730 metro trains. The company transports more than a billion passengers each year and covers a distance of more than 180 million kilometres. As of 1 January 2019, it has 10 930 employees, of which 4 265 are Prague Public Transport operators. The sole shareholder of the Prague Public Transit Company is the Capital City of Prague. ROPID (Regionální organizátor Pražské integrované dopravy) determines the number of transport connections and manages the public transit schedules in Prague. More information about the Prague Public Transport Company can also be found at http://www.dpp.cz.