Rapid growth also continued in the international business. The postal services provided on the Estonian market were characterised by continuously decreasing revenues.
In the first nine months of 2016, the total commercial revenue of the group amounted to 63 million euros, representing a 25% increase in a year-on-year comparison. Similarly to the first two quarters, the growth was stimulated by the growth of international e-commerce and logistics services.
Parcels business: growth throughout the Baltics, especially in Latvia
In the domestic Baltic market, the group’s revenues from the parcels business increased by 19% in a year-on-year comparison. The expansion was especially remarkable in the Latvian parcels business where the commercial revenue from the parcels business doubled compared to the same period of the year before.
Because of the boost of Latvian e-commerce, Omniva also doubled the number of parcel machines planned for Latvia and will extend its PM network in 2016 by 54% in Latvia and by 35% in all the Baltic countries. After the completion of the Latvian expansion, the PM network of Omniva will have expanded this year by 20 parcel machines in Estonia, 22 in Lithuania, and 30 in Latvia. It is the largest PM network in the Baltics covering all the Baltic countries.
According to Aavo Kärmas, Chairman of Omniva’s Management Board, the development of the Baltic parcels business has been turbulent. “As e-commerce is international and global, increasingly more business customers see the Baltics as a single integral market. Customers expect a parcels service that covers all Baltic countries and our wish and goal is to take the service as close to the customers as possible,” said Kärmas.
Next year, Omniva will be opening its PM network in all the Baltic countries for other partners as well to give an even bigger boost to the rapid development of e-commerce.
An important event for Omniva Lithuania in the third quarter was the relocation of the parcels terminal to bigger premises. The new terminal in northeast Kaunas is twice as big as the previous one, at a logistically more convenient location, and has the capacity of servicing a lot more parcels. All this contributes to moving more parcels quicker and in a more efficient manner, and supports Omniva’s parcels business growth in Lithuania.
In Estonia, Omniva started the establishment of the most contemporary logistics centre in the Baltics. The future logistics centre will be located near Tallinn, in the vicinity of the Tallinn airport and relevant nodes of infrastructure. The new centre will be completed in autumn 2018.
Postal services: continuous decline of revenues
Traditional postal services are provided by Omniva only in Estonia. The revenues from postal services dropped by 4% in a year-on-year comparison.
The overall picture of comparing the results of the first nine months to the year before is influenced by the parliament elections held in Estonia in March 2015, which resulted in an 8% decline in revenues from direct mailing services compared to the same period of the year before.
Growth of the information logistics business is supported by the spread of e-invoices
Revenues from the information logistics business of the group increased by 32% compared to the first three quarter of 2015. Growth opportunities for the information logistics business are supported by the governmental plan to change the invoicing between the public and private sectors over to e-invoices by the end of 2016, and by the plan of the European Commission to develop a uniform e-invoice standard for European countries by the end of 2016, which would support cross-border invoicing with e-invoices.
Source: Omniva
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