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Zagreb Mayor: Profitability, not revenue, defines success for city's utility company
🇭🇷 Croatia /Economy & Trade

Zagreb Mayor: Profitability, not revenue, defines success for city's utility company

From Večernji List · () Croatian

Translated from Croatian, summarized and contextualized by DistantNews.

At a glance

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  • Zagreb's Mayor Tomislav Tomašević stated that a decrease in revenue for Zagrebački Holding in 2025 is not a concern, emphasizing that profitability and service quality are the key metrics.
  • He highlighted that the company has operated profitably for three consecutive years, a contrast to previous losses, and its credit rating has improved significantly.
  • Tomašević also noted that Zagreb was one of the few major cities to avoid a budget deficit in the past year, unlike several others that reported significant shortfalls.

Zagreb Mayor Tomislav Tomašević defended his city's public utility company, Zagrebački Holding, against criticism regarding a decline in its business revenue for 2025. He argued that focusing solely on revenue figures misses the point of public enterprise management. "The key is the difference between revenue and expenses, meaning whether the company operates positively or negatively," Tomašević stated. He stressed that for public companies, ensuring high-quality services at the lowest possible price for citizens is paramount.

The key is the difference between revenue and expenses, meaning whether the company operates positively or negatively.

— Tomislav TomaševićMayor of Zagreb, Tomislav Tomašević, explaining his view on assessing the performance of public companies.

Tomašević pointed to the company's financial performance over the last three years, noting it has been profitable, a significant turnaround from the losses it incurred in the preceding three years. He also highlighted the positive impact on the company's credit rating, which has been upgraded several levels. The city of Zagreb itself has seen its credit rating rise to its highest historical level in five years.

For public companies, it is even more important that citizens receive the highest possible quality service at the lowest possible price.

— Tomislav TomaševićMayor of Zagreb, Tomislav Tomašević, discussing the priorities for public utility companies.

The mayor further elaborated that the goal of public companies is not to generate massive profits. "Holding should operate with a small profit or a positive zero, but not with a loss," he explained. He believes that excessive profits would imply overcharging citizens, which contradicts the purpose of a public service provider.

Holding should operate with a small profit or a positive zero, but not with a loss.

— Tomislav TomaševićMayor of Zagreb, Tomislav Tomašević, on the ideal profit margin for public enterprises.

In a broader fiscal context, Tomašević expressed satisfaction that Zagreb avoided a budget deficit in the past year. He contrasted this with other major Croatian cities like Split, Karlovac, and Velika Gorica, which reported substantial deficits. This fiscal prudence, he suggested, demonstrates effective management of the city's finances.

Zagreb did not incur a deficit, and I am satisfied with that.

— Tomislav TomaševićMayor of Zagreb, Tomislav Tomašević, commenting on the city's budget performance.
DistantNews Editorial

Originally published by Večernji List in Croatian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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