Business News

Photo: Kristýna Maková

Ernst & Young expects economy to grow by 2.2 percent in 2013; Czech Post gives up cigarettes; a Czech video game developer gets 36 million in backing through crowd funding; Czech Lego plant sees rise in profits; and a court rules that a 16-year-old will be allowed to go into business for himself – two years before the legal age.

Ernst & Young predicts 2.2 percent economic growth

Photo: Kristýna Maková
The Czech economy will grow 2.2 percent this year and will expand by roughly 3 percent in the years to come, according to an estimate released by Ernst & Young this week. Recovery in the euro zone and the crown’s weakening after forex interventions, launched by the central bank last November, will help the economy, according to the firm. E&Y estimates average inflation at 1.7 percent this year irrespective of the recently announced decreases for regulated power prices.

Czech Post gives up cigarettes

Photo: Filip Jandourek
Czech Post, as of next week, will halt the sale of cigarettes at designated branches, according to a company spokeswoman. Czech Post had been selling cigarettes at some locations – 600 out of a total of 3100 since last year. But the project was met with opposition from some including a number of MPs and the prime minister. The aim had been to secure additional revenues: Czech Post made 400 million crowns in extra income and a net profit of 120 million last year from supplementary sales of items including toys and lottery tickets.

Warhorse project gets 36 million in backing for historic game

Photo: KickStarter
Crowdfunding played a major role in advancing a computer game project launched on the web by Warhorse Studios. The historic game, called Kingdom Come: Deliverance, was first backed by business magnate Zdeněk Bakala. It has become the 12th most successful project of its type on the Czech market, raising 36 million crowns through more than 35 thousand backers. Crowdfunding internationally, is being used increasingly in entertainment areas including niche areas like hobby gaming.

Lego second only to Mattel

Photo: Radio Prague
The world-famous builder of children’s bricks, Lego, released their figures for 2013 this week showing that annual sales increased by 3.4 billion euros. Production and operational profits at the company’s plant in Kladno, outside the Czech capital, rose by 11 percent. Production and storage space at the plant was increased by a third last year. Among toy manufacture worldwide, Lego is now second only to toy giant Mattel. The company’s most popular sets, including in the Czech Republic, include Lego City, Lego Friends and the Star Wars franchise.

Court rules 16-year-old can apply for business permit

Michal Prachař,  photo: Archive of Michal Prachař
Michal Prachař made headlines in the Czech Republic after applying for – and receiving – permission by a court in Ceske Budejovice to found and run a business at the age of 16, two years before he would legally be able to do so. The young businessman, studying IT at secondary school, began working with computers three years ago and is aiming to focus on marketing and internet sales. The aim is to launch an e-shop which have increased markedly in popularity in the Czech Republic to get a jump on the competition. He told news site iDnes he wanted the shop to focus on the world of travel, luxury items and services, aimed primarily at a younger clientele. He added he also wanted to launch a website catering to the Brazilian community.