- Stable revenue development Q1–3 excl. former subsidiary trans-o-flex
- (mail business -1.0%, parcel segment +3.5%)
- Revenue after sale of trans-o-flex of EUR 1,510.4m
- EBIT of EUR 135.5m at the prior-year level (+0.2%)
- Quarterly development during the year impacted by election effects and interest-bearing provisions (non-cash)
Cash flow and balance sheet
- 3.5% increase in the cash flow from operating activities to EUR 158.9m
- Conservative balance sheet structure with strong cash position; equity ratio of 40.0%
- Revenue forecast 2016 of EUR 2.0bn (current business portfolio) remains unchanged
- Targeted stable development of operating earnings (EBIT) for 2016 and 2017
OVERVIEW OF AUSTRIAN POST
In the first nine months of 2016, Group revenue of Austrian Post amounted to EUR 1,510.4m, compared to EUR 1,746.5m in the prior-year period. The revenue deviation can be mainly attributed to the sale of its former subsidiary trans-o-flex in April 2016. Adjusted for the disposed company trans-o-flex, revenue remained stable compared to the prior-year period.
The mail business, Austrian Post’s largest business area, continues to be impacted by the ongoing substitution of addressed letter mail by electronic forms of communication. The Mail & Branch Network Division showed a slight revenue decrease of 1.0% in the first three quarters of 2016 to EUR 1,078.3m. In contrast, the trend towards online shopping continued unabated in the parcel segment. Despite intensified competition, Austrian Post succeeded in further increasing parcel revenue in Austria. Adjusted for the revenue of the former subsidiary trans-o-flex, the Parcel & Logistics Division generated revenue growth of 3.5% in the first nine months of 2016.
Operating earnings (EBIT) of Austrian Post totalled EUR 135.5m, a slight rise of 0.2% from the previous year. The disposal of the subsidiary trans-o-flex as well as higher revenue contributions from elections to the amount of EUR 3.0m had a positive effect on earnings in a year-on-year comparison. This was in contrast to an increase of EUR 12.8m in non-operational staff costs (including changes in provisions related to a change in the discount interest rate) compared to last year.
“Our top priority is to further strengthen Group profitability based on an offering of innovative solutions and the ongoing expansion of services for the benefit of our customers. At the same time, we are continuing our efforts to optimise costs and enhance efficiency”, says Austrian Post CEO Georg Pölzl. “Accordingly, stability is our primary objective, not only for 2016 but for 2017 as well. This target applies to the development of revenue and earnings as well as the investment and dividend policy of the Austrian Post Group.”
REVENUE DEVELOPMENT IN DETAIL
In the first nine months of 2016, Group revenue of Austrian Post fell to EUR 1,510.4m from the prior-year figure of EUR 1,746.5m due to the sale of the subsidiary trans-o-flex. Adjusted in both years for the disposed company trans-o-flex, revenue remained stable at EUR 1,375.5m (Q1-3 2015: EUR 1,376.7m).
Mail & Branch Network Division revenue was down 1.0% to EUR 1,078.3m during the period under review. Third-quarter revenue fell by 2.8% due to lower revenue contributions from elections than in the prior-year period. Moreover, there was one calendar working day less in a quarterly comparison. Revenue of the division's Letter Mail & Mail Solutions segment amounted to EUR 584.5m in the first three quarters of 2016, slightly below the prior-year level. The basic trend towards the substitution of letters by electronic forms of communication is continuing. This was in contrast to an additional growth in international volumes.
Revenue in the Direct Mail business decreased by 2.3% to EUR 304.3m in the first nine months of 2016. This development is primarily the result of the sale of mail subsidiaries in Hungary and Slovakia in the previous year as well as the reduced advertising activities on the part of individual customers. In contrast, the increase in international direct mail volumes had a positive effect on revenue. Media Post revenue rose by 1.3% year-on-year to EUR 101.8m, which is particularly related to various one-time mailings. Branch Services revenue fell to EUR 87.8m in the first nine months of 2016, comprising a drop of 2.8% from the previous year. The positive development of mobile products was offset by a change in the corresponding invoicing model.
Source: Austrian Post