Revenue increase driven by dynamic parcel growth
- Revenue up 1.9 % to EUR 953.7m (excl. trans-o-flex)
- Mail decline more than offset by parcel growth
Quality leadership in Austria
- Further development of the product portfolio in line with customer demand
- All-time high customer satisfaction
- Optimisation of delivery synergies and capacity expansion
Earnings rise due to the good revenue development
- EBIT increase of 3.6 % to EUR 102.2m
- Continuing focus on efficiency enhancement and cost discipline
- Increase of earnings per share to EUR 1.13
- Stable or slightly higher Group revenue forecast for 2017 (2016: EUR 1.9bn)
- Targeted EBIT at the same level as in the previous year
In the first half of the current financial year, Austrian Post’s Group revenue amounted to EUR 953.7m. Adjusted for the subsidiary trans-o-flex sold in April 2016, the revenue increase equals 1.9 %. Revenue in the mail business was down only slightly from the prior-year level although the trend towards electronic substitution of traditional letter mail continued. In turn, the parcel business generated substantial growth. Austrian Post profited from dynamic market growth and the ongoing online shopping trend. On the basis of the solid revenue development combined with strict cost discipline, operating earnings (EBIT) totalled EUR 102.2m, comprising a year-on-year rise of 3.6 %. “We are very satisfied with the revenue development, which was primarily driven by dynamic parcel growth. In the first half-year, we have once again succeeded in asserting our strong market position in this highly competitive market due to our outstanding delivery quality and a broad offering of individualised customer solutions. Moreover, the new product portfolio enables an even more efficient leveraging of synergies in the delivery of letters and parcels”, comments Georg Pölzl, Chief Executive Officer of Austrian Post.
Mail Decline Compensated By Parcel Growth
Revenue of the Mail & Branch Network Division fell by 2.2 % to EUR 720.9m during the period under review. The downward revenue development in the first six months of 2017 was primarily attributable to the ongoing trend towards electronic substitution of traditional letter mail. Direct mail revenue has also decreased in the second quarter mainly due to the lack of impetus from elections. Mix effects related to the new product structure and increased one-off mailings by individual customers, predominantly banks and insurance companies. Revenue of the Parcel & Logistics Division increased in the first half-year 2017 by 16.7 % to EUR 232.7m (excl. trans-o-flex). This strong growth resulted mainly from the ongoing e-commerce trend, which led to a substantial rise in private customer parcels. The basic upward revenue trend in the first six months of 2017 is estimated to equal somewhat more than 10 %. Additional revenue was also generated through the launch of a simplified product structure featuring the new produc, the “Packet”, a special product offering designed to meet the requirements of online orders. Intense competition still prevails. At the same time, demand for quality and delivery speed as well as price pressure is increasing.
Quality Leadership In The Core Business
Austrian Post remains the undisputed market leader in the delivery of letters, direct mail items and par-cels. “We must continue to work on our high quality standards in order to maintain and enhance our competitive edge in the future”, states Pölzl. The most recent customer survey demonstrates that customers acknowledge Austrian Post’s ambitions. “Our customer satisfaction index is currently at an all-time high, and the image trend also shows a positive development. However, we will not rest on our laurels. The results are actually an incentive for us to work resolutely on further expanding our customer solutions”, Pölzl adds. Austrian Post continued to press ahead with investments in innovative customer solutions and efficient logistics in the first half of 2017. An extensive, Austrian-wide capacity expansion programme is in the works and will enable Austrian Post to handle strong growth in parcel volumes in the future and maintain high quality standards.
Clear Positioning: Reliability and Stability
Solid development in the first half of 2017 should enable Austrian Post to continue its commitment to a clear capital market positioning as a reliable dividend stock. “Reliability and predictability for shareholders and other stakeholders of our company continue to be the focus of our strategic activities, and we aim to continue along this path in the future”, Pölzl concludes. Accordingly, Austrian Post anticipates a stable or slightly positive revenue development for the entire year 2017 and targets operating earnings at least at the same level as achieved in the previous year.
The Half-year Financial Report 2017 is available at www.post.at/ir--> Reporting.
Source: Austrian Post