TNT reports Q1 results
TNT has reported revenues of €1.587bn and an operating loss of €1m for the first quarter (Q1) of 2016. The company said that both revenue and income were “negatively influenced by fewer working days”.
The €1.587bn revenue total was down from €1.622 in Q1 2015, but TNT said that “underlying revenue growth, adjusted for currency effects, lower fuel surcharges and working-day effect, was 4.2%”.
The €1m loss was a €10m improvement over the prior year. This result included one-off charges of €10m, of which €4m related to the FedEx offer. Excluding one-off charges, the adjusted operating income was €9m, up €8m year-on-year.
TNT said that it finished Q1 2016 with a net cash position €145m, compared to €330m one year earlier.
Commenting on results, Tex Gunning, TNT’s Chief Executive Officer, said: “In the first quarter, TNT again delivered solid underlying revenue growth. Adjusted operating income improved despite fewer working days and continued investments in the Outlook strategy. The Outlook strategy is on track and delivers good growth from SME customers. Our customer satisfaction scores hit new records in Q1.
“Investments in operational excellence have started to pay off and were €51m during the quarter. We made good progress with the roll-out of the Global Business Services and Simplify & Transform initiatives.
“Meanwhile, we spent significant time and effort towards the completion and preparation of the intended acquisition by FedEx, which we expect to complete in the first half of 2016.”
