Compared to the first quarter of last year, international business showed the greatest growth with 110%, followed by the Parcels Business of Latvia with 78%.
In the first quarter of 2017, the group’s total commercial revenue was 27 million euros, which was 33% more than in the same period last year. The growth mainly resulted from the success of the international e-commerce business, the rapid growth of the Information Logistics Business, and the fact that Omniva was able to maintain the revenue of Postal Services.
The parcel machine network ensures growth in the domestic market
The company’s commercial revenue from parcel services grew by 16% in the Baltic region compared to the first quarter of the previous year. The revenue of parcel services grew by 13% in Estonia and by 22% in Lithuania in the first quarter. In Latvia, however, the percentage was significant – 78%.
“For several years now, the growth of Omniva’s Parcels Business has been the result of the largest parcel machine network in the Baltic region, which has become the most popular channel for sending and receiving parcels thanks to its accessibility and the fact that it is open at all hours,” said Ansi Arumeel, Member of the Management Board. Omniva has installed 276 parcel machines in the Baltic region and these ensure a convenient and fast parcel service, which is always available.
The company plans to further expand its parcel machine network in the autumn of 2017. The expansion of the network is also influenced by the increased user satisfaction in the Baltic region during the first quarter. “There is no doubt that we want to provide even more momentum to e-commerce in the entire Baltic region. Therefore, we make sending and receiving parcels as convenient as possible for people,” said Arumeel.
Even though the revenue of Postal Services is usually in a steady decline because the volume of letters is decreasing, Omniva was able to maintain last year’s level in the Area of Postal Services in the first quarter of 2017. “We were able to maintain the results of the first quarter of last year regardless of the fact that letter volumes have continued to fall. However, we have made up for it with the growth of other postal services,” explained Arumeel.
According to Arumeel, they continue to adapt the postal network to customer expectations and service volumes. “For example, we recently expanded the Järve post office in Tallinn and upgraded the post office in Lõunakeskus in Tartu,” said Arumeel.
International business continues to grow
In the first quarter, international business was once again the fastest growing area. The area is engaged in transporting parcels of international e-commerce all over the world. In the first quarter, the commercial revenue of Omniva’s international business grew by 110% compared to the previous year. Post11, the joint enterprise of Omniva and S.F. Express, which is the largest private courier company in China, services nearly 100 target countries worldwide. In 2016, Post11 mediated 3% of China’s international e-commerce.
Information Logistics Business grew exceptionally fast
The service revenues of the Information Logistics Business grew in all three Baltic countries. Additionally, the revenue of the Information Logistics Business grew by 42% compared to the first quarter of 2016. In less than four months, more than 180 new clients have joined Omniva’s Invoice Centre. Due to the growing popularity of e-invoices, they now make up for 26% of all B2B and B2G sector invoices. “A growing proportion of letters is moving to e-channels where, for example, invoices, which were sent on paper in the past, are now sent as e-invoices. Thanks to the processing speed and convenience of e-invoices compared to paper or PDF invoices, the popularity of e-invoices continues to grow,” explained Arumeel.
In 2016, Omniva mediated 14 million invoices and in doing so, serviced 2,500 clients using e-invoices in the Baltic States and Scandinavia.