The Group earned a profit of 12.9 million euros in the first three quarters, which is almost four times more than a year earlier. The result was primarily affected by significantly increased revenues in Baltic parcel services.
According to Mart Mägi, Chairman of the Management Board of Omniva, the volume of e-commerce in the domestic market grew so much that the turnover of the company continued to grow strongly despite the decline in international parcel volumes, which had a major impact on the third quarter. ‘The change in VAT on parcels ordered from third countries, which entered into force in the European Union on 1 July, led to a decrease in international parcel volumes of approximately 40%. Fortunately, e-commerce in Estonia and the Baltics has grown,’ said Mägi.
In 9 months, revenues from Baltic parcel services increased by 25% year-on-year. In addition to Estonian parcel services, the operating revenues of Omniva also continued to grow strongly in Latvia and Lithuania – by 58% and 49% year-on-year, respectively.
In the third quarter, the number of COVID-19 cases, which had receded in the meantime, started to rise again in Estonia, Latvia, and Lithuania, which is why the parcel machines, which have previously been the first preference of customers for sending and receiving parcels, became more popular again. A significant competitive advantage continues to be that the parcel machines of Omniva are located outside, are usable with gloves, and support contactless payments. The Omniva parcel machine network is also the largest, which means that our parcel machines are the closest to the customer. In the fourth quarter, the company plans to further expand its parcel machine network.
The coronavirus situation also strongly affects parcel volumes during the Christmas period and at the end of the year. Therefore, Omniva started preparations in the third quarter for the global and local shopping holidays, which increase the volume of parcels every year, to successfully serve customers during the busy period.
In the third quarter, Eesti Post issued various stamps, including stamps dedicated to the 100th anniversary of Estonian Civil Aviation, the 125th anniversary of the first film screening, and the 100th anniversary of the Estonian Football Association. The latter is unique in that it is made of football material. On 20 August, the company also issued a postcard and a printed stamp dedicated to the thirtieth anniversary of the re-independence of the Republic of Estonia.
Despite the impact of EU tax changes, the international business area of the Group grew by 5% year-on-year. We also started to prepare for servicing large volumes during the Christmas period in the international business area. This year, for the first time, the company is sorting the parcels in the centres in Kaunas and Tallinn. The international business area forecasts an all-time record of parcel volumes for the fourth quarter.
Information business services are provided by Finbite OÜ, a subsidiary of the Group, and the third quarter was successful for the company. In the third quarter, information business revenues increased by 19% compared to the previous year. The sales results of Finbite (information business) were the best in history in all countries (Estonia, Latvia, and Lithuania).
The main activity of AS Eesti Post is the provision of postal and logistics services and the handling of e-invoices. In addition to the parent company, the Group includes subsidiaries and related companies. The main activity of SIA Omniva and UAB Omniva LT is the provision of parcel machines and courier services in the Latvian and Lithuanian markets. AS Maksekeskus provides payment solutions to e-commerce companies in the Baltics. Finbite OÜ offers e-invoicing and fintech solutions across the Baltics. Post11 offers e-merchants comprehensive international logistics solutions for the delivery of goods all over the world.
AS Eesti Post is an Estonian state-owned company. The Group employs 2,300 people across the Baltics and had a turnover of 135.6 million euros in 2020.