Tough years ahead for French La Poste
La Poste, the French national postal services group, will reportedly announce a sixfold increase in profit for 2003, to 202m euros, from 34m in 2002. The group is also expected to post a 4 per cent increase in turnover to 18bn, and a threefold increase in operating profit, to 310m euros, thanks to improved cost-cutting. Despite these apparently positive figures, the parent company would reportedly have made a loss in the period in question, had it not received 200m as a result of the increase in the price of postage stamps, which came into effect on 1 June 2003. In addition, the public company registered an operating margin of -0.6 per cent, compared with 5 per cent and six per cent respectively for counterparts Deutsche Bank of Germany and TPG of the Netherlands. Net banking product was down and so was collection. La Poste is bracing itself for a difficult few years, and hopes the expansion of its financial services in 2005 will spur growth, despite an anticipated decline in courier activity. The group aims to become a top European player in the postal sector by 2010.
