Financial highlights Q3 2016
- Revenue stable at €770 million (Q3 2015: €780 million)
- Underlying cash operating income increased to €27 million (Q3 2015: €23 million)
- Long term debt reduced to €557 million (Q2 2016: €913 million)
- Net cash from operating and investing activities of €(105) million, includes bond buyback, acquisition of Yourzine and Searchresult and development in working capital (Q3 2015: €18 million)
- Profit for the period €20 million, adjusted for the impact from bond buyback of €(29) million (Q3 2015: €18 million)
Operational highlights Q3 2016
- Addressed mail volume declined by 5.9%
- Quality well above minimum statutory level
- €13 million cost savings realised
- Parcels volume grew by 12%
- Improved performance International
Outlook 2016 and 2017
- Full year underlying cash operating income
- 2016 outlook: €220 million - €260 million
- 2017 outlook: reconfirmed to be in the range of €230 million - €270 million
- Expectation of and commitment to resuming our dividend in 2017
Herna Verhagen, CEO of PostNL: “Our third quarter results were in line with expectations. The year-to-date performance gives us confidence in delivering our full year outlook. We reconfirm the earlier given range for the 2016 estimated underlying cash operating income of between €220 million and €260 million.
The trend in Parcels continued to be very solid. We recorded another quarter of strong volume growth and improved results, even though milk powder volumes declined. Mail in the Netherlands again delivered results according to plan, taking into account the volume decline, the impact from our adjusted market approach and the measures announced by the regulator (ACM). Our restructuring projects continue to generate the expected cost savings. The performance in International improved as we anticipated.
In the third quarter we made further progress in innovation, one of the drivers of our strategy. Our Return on Demand service, the collection of return parcels at home, is now available nationwide and we see growing demand for our same-day parcel delivery proposition. The acquisition of Yourzine and Searchresult will allow us to further extend our capabilities in data-driven marketing services, underpinning our direct marketing proposition. All these are steps that will help us to realise our aim to be the postal & logistic solution provider in chosen markets.
Furthermore, we further improved our financial position, by using part of the proceeds of the sale of our stake in TNT Express to reduce our debt. We re-iterate our expectation of and commitment to resuming dividend in 2017.”