Austrian Post Q1 2016 report

Revenue Decrease of 1.2%, EBIT Negatively Impacted By Interest Rate Effects, Stable Outlook For 2016 Confirmed.


  1. Revenue decline of 1.2% to EUR 592.8m.
  2. Mail revenue decline attributable to volume decrease and specific effects.
  3. Stable development in the parcel segment.


  1. EBIT down 5.3% to EUR 51.1m.
  2. Earnings negatively impacted by interest rate effects for staff-related provisions.
  3. Earnings per share of EUR 0.57.

Cash flow and balance sheet

  1. Increase in the cash flow from operating activities to EUR 60.1m.
  2. Strong cash position and low level of financial liabilities.

Outlook 2016

  1. Revenue forecast of EUR 2.0 bn (current business portfolio).
  2. Targeted stable development of operating earnings (EBIT).

Overview of Austrian Post
Revenue of the Austrian Post Group in the first quarter of 2016 totalled EUR 592.8m, a slight decline from the previous year. The parcel segment showed a stable revenue development, whereas revenue decreased in the mail business, which continues to be impacted by the ongoing substitution of traditional letter mail by electronic forms of communication. In particular, public sector customers as well as banks and insurance companies are trying to reduce mail volumes. Moreover, in general, mail revenue is strongly influenced by election effects. However, no elections took place during the period under review, in contrast to the prior-year quarter. Business with direct mail showed a diverging development of individual customer segments. The volume of addressed direct mail items declined in contrast to the rise in unaddressed mail volumes.

The trend towards increased e-commerce is continuing in the parcel segment, leading to further growth of parcel volumes in Austria. At the same time, there has been a perceptible intensification of competition which Austrian Post is addressing through ongoing investments at the customer interface. Customer service was enhanced to include Saturday and evening delivery. In addition, the company offers a range of innovative customer solutions. For example, 306 self-service zones and 218 pick-up stations throughout Austria were available to customers as at the end of March 2016. The market trends positively impacting the business operations of Austrian Post’s international subsidiaries in South East and Eastern Europe continued. The German subsidiary trans-o-flex was sold, with the closing and deconsolidation taking place effective April 8, 2016.  

EBIT of Austrian Post amounted to EUR 51.1m in the first quarter of 2016, or EUR 2.8m below the prior-year quarter. This development can be mainly attributed to interest rate effects on staff-related provisions, which were EUR 4.7m higher than in the previous year. However, these effects could be partially offset by further cost optimisation and enhanced efficiency.

A dividend of EUR 1.95 per share for the past financial year was distributed to shareholders on April 28, 2016. In this way, Austrian Post once again remains committed to its clear capital market positioning as a reliable dividend stock. “The focus of our strategic activities is ensuring reliability and consistency on behalf of our company’s shareholders and other stakeholders. We intend to continue along this path in the future,” says CEO Georg Pölzl. Austrian Post is striving to generate revenue of EUR 2.0 bn in 2016 on the basis of its current business portfolio, taking account of the sale and deconsolidation of the German subsidiary trans-o-flex. Furthermore, the company also aims to achieve a stable development of its operating earnings (EBIT).

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Source: Austrian Post

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