Revenue remained stable (excl. trans-o-flex)
- Mail & Branch Network -1.6%: partially offsetting the ongoing substitution of letter mail
- Parcel & Logistics +3.9%: growth despite intensified competition
- Reported Group revenue of EUR 2,030.5m
Earnings up once again
- EBIT at EUR 202.3m above prior-year operating earnings (+2.2%)
- Net earnings per share of EUR 2.26
Record dividend and employee profit-sharing bonus
- Proposal to the Annual General Meeting: dividend of EUR 2.0 per share (+2.6%)
- Employee bonus at all-time high of EUR 853
2017: setting the direction for future viability
- New customer solutions: e-Letter, shöpping, expansion of self-service zones, digital offerings
- Outlook: stable development of operating earnings (EBIT) also targeted for 2017
Austrian Post showed a very satisfactory development in the 2016 financial year. In spite of difficult conditions, Group revenue (adjusted for the disposed German subsidiary trans-o-flex) remained stable at a high level. Operating earnings were also gratifying against the backdrop of a challenging market environment. EBIT improved by 2.2% to EUR 202.3m. The profit for the period reached EUR 152.7m, corresponding to undiluted earnings of EUR 2.26 per share. “In spite of a challenging market environment and increased competition, we once again succeeded in positively developing the company. The resolute continuation of our strategy and the commitment of our employees played an important role in this”, says Georg Pölzl, CEO of Austrian Post.
MAIL REVENUE HELD UP WELL – FURTHER INCREASE IN PARCEL REVENUE
The Mail & Branch Network Division succeeded in partially offsetting the structurally related decline in mail volumes. On balance, revenue of the division only fell slightly by 1.6%. The company continued the expansion of its self-service offering in the branch network, and offered around 335 self-service zones to customers at the end of 2016. In the Parcel & Logistics Division, Austrian Post managed to successfully withstand intensive competition and generate revenue growth of 3.9% (excl. the former subsidiary trans-o-flex). The outstanding logistics and service quality of Austrian Post served as the basis for the renewed volume increase on the Austrian parcel market, from 80m to 81m parcels.
FOCUS ON NEW CUSTOMER SOLUTIONS
“In 2017 we are aiming for an even more customised response to fulfil individual customer preferences for delivery on the basis of an improved service offering. We are continuously investing in innovative customer solutions and service upgrades. The launch of a completely new product, the ‘Packet’, enables us to specifically respond to customer needs on the fast-growing e-commerce market, and create a sleek and quick solution for small online orders”, Austrian Post CEO Georg Pölzl states. February 27, 2017 marked the launch of the new e-Letter i.e. a secure digital form of delivery. Thanks to this cost-free service for recipients, all important documents are collected and then deposited in an e-letterbox for customers. Austrian Post will soon facilitate the retail presence on the Internet starting on April 5, 2017 on the basis of its new “shöpping” marketplace. The shöpping platform should become a business hub for domestic retailers and consumers thanks to its broad product range and the typical delivery quality ensured by Austrian Post.
RECORD DIVIDEND AND EMPLOYEE PROFIT-SHARING BONUS
On the basis of a strong cash flow and a solid balance sheet, Austrian Post will propose that the Annual General Meeting scheduled for April 20, 2017 approve distribution of a dividend of EUR 2.0 per share (2015: EUR 1.95). In this way, the company once again underlined its positioning as a reliable and predictable investment. Austrian Post employees are also benefitting from the business results. Over the last 15 years, Austrian Post has implemented a voluntary employee profit-sharing bonus scheme. This year eligible employees will receive for 2016 the highest amount ever paid since this initiative was launched, namely a gross bonus of EUR 853 (2015: EUR 832). The Austrian Post Group employs 21,695 people, including 17,448 at Österreichische Post AG.
OUTLOOK 2017: STABLE DEVELOPMENT TARGETED
The mail and parcel markets have been shaped by two ongoing trends in recent years which are continuing. Volumes of addressed mail are declining, whereas parcel volumes especially to private customers are rising, driven by increasing online orders. Volume declines of about 5% p.a. are expected in the traditional addressed letter mail business. The volume of direct mail will continue to show a diverging development in the individual customer segments and product groups. “On the basis of the aforementioned volume trends as well as the resolute implementation of the initiated measures to promote customer orientation and innovation, Austrian Post will strive to maintain Group revenue at a stable level in 2017”, Pölzl says, adding: “We will resolutely continue along our chosen path with respect to efficiency and the cost structure. Investments are planned, and at the same time we will move ahead with improving service and expanding capacities.” On the basis of existing volume and revenue forecasts and the continuation of efficient supply of services, Austrian Post aims to generating a stable operating EBIT in the 2017 financial year at the same level as in the 2016 financial year (2016 EBIT: EUR 202.3m).
The financial report FY 2016 is available on the Internet at www.post.at/ir --> Publications.
Source: Austrian Post