- The company grew in international business and in the domestic Baltic market; in the latter, from the perspective of the information logistics business, as well as parcels business. The postal services provided on the Estonian market were characterised by continuously decreasing revenues.
- In the first six months of 2016, the total commercial revenue of the group amounted to 42.18 million euros, representing a 24% increase compared to the same period of the previous year. The growth was impacted by the growth of international e-commerce and logistics services, the revenue from postal services decreased by 5%.
- In the first half of 2016, Omniva Group grew the most in the international business, where the growth amounted to 146% compared to the same period of the previous year. International business primarily consists of the logistics of Chinese e-commerce parcels worldwide.
Parcels business: growth throughout the Baltics
In the domestic Baltic market, the group’s revenues from the parcels business grew 16% compared to the same period of the previous year. The growth of the parcels business was especially remarkable in Latvia, where the commercial revenue from the parcels business more than doubled compared to the same period of the year before. “Omniva’s operations in other Baltic countries is gathering pace,” says Aavo Kärmas, CEO. “Our decision from a few years ago to treat the Baltics as an integral market is bearing its first fruit and the background to this is that customers are increasingly more demanding a parcels service solution that covers all Baltic countries. Only Omniva is currently able to provide such comprehensive solution and it is our goal to take the service as close to the customer as possible.”
The growth of the parcels business is supported by the expansion of the parcel machine network in Estonia, Latvia, and Lithuania. Omniva’s 234 parcel machines form the largest parcel machine network in the Baltics and will be increased further by approximately a third in 2016, expanding to smaller towns and settlements. Currently, Omniva has 234 parcel machines with approximately 28,000 parcel compartments in 120 cities all over the Baltics.
Postal services: continuous decline of revenues
Traditional postal services are provided by Omniva only in Estonia (under the trademark of Eesti Post). The revenues from postal services dropped by 5% compared to the same period of the previous year.
The overall picture of comparing the results of the first six months to the year before is influenced by the parliament elections conducted in Estonia in March 2015, due to which the revenues from direct mailing services in the first six months of this year were 15% lower compared to the same period of the year before. Changes in the use of services and consumption habits of people mean that post offices are increasingly more becoming places where parcels are received and issued, and customer consulting centres where people are advised on using various services.
“The modernisation of the Postal Act initiated by the Ministry of Economic Affairs and Communications, i.e. the plan to develop a new Postal Act, will hopefully allow bringing the structure of the postal network in line with the changed needs of customers as early as in the next few years and making the service more convenient, flexible, and efficient for people,” says Kärmas.
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 31% compared to the first six months of 2015. The growth opportunities of the information logistics business are supported by the governmental plan to transfer the settling of accounts between the public and private sectors to machine-readable 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 settling of accounts with the help of e-invoices.
The main investments of the group in the first six months involved installing new parcel machines in the Baltic countries and investing in information technology.
AS Eesti Post is an international group that offers postal, logistics, and information logistics services. The group comprises AS Eesti Post as the parent company, AS Maksekeskus, UAB Omniva LT in Lithuania and SIA Omniva in Latvia as subsidiaries, and the affiliated company Post11. The principal activity of the parent company is the provision of postal, logistics, and information logistics services, as well as the management of e-invoices (Omniva invoice management). The principal activity of SIA Omniva and UAB Omniva LT is the provision of parcel machine and courier services on the Latvian and Lithuanian markets. AS Maksekeskus operates in the provision of payment solutions to online trade companies in the Baltics. Post11 provides online traders holistic international logistics solutions to deliver goods all over the world.
AS Eesti Post is a 100% state-owned company in the area of government of the Ministry of Economic Affairs and Communications.