TNT predicts double-digit growth in Hungary for 2005, remains market leader
TNT Express Worldwide Hungary recorded revenues of HUF 7.89 billion (USD 39 million) in 2004, 14% more than a year earlier, meaning that the company met its own forecast predicting double-digit growth for 2004, managing director Marton Jarosi announced Wednesday.
The Hungarian branch is not allowed to publish profitability figures and forecasts, Jarosi said, revealing only that he expects group revenues to show double-digit growth in 2005 as well.
TNT Express Hungary spent slightly more than HUF 200 million on investments last year, of which IT-related developments accounted for HUF 140 million, while other infrastructure investments totaled HUF 66 million. The latter included the purchase of 20 vehicles.
The company’s investments will significant rise this year, as it plans to spend HUF 655 million on developments in 2005. Of the total amount, the largest project is slated to be the development of the company’s base at the Ferihegy airport for HUF 290 million.
However, this would require the building of a new cargo base by the airport, a project that has been held up in political disputes. TNT believes that the cargo base should have been built five years ago, as it would not only serve the companies using it, but also boost the city’s regional competitiveness, according to Jarosi.
IT investments will total HUF 190 million this year, while the capacity expansion of the company’s Budapest storage base will cost HUF 70 million. TNT will spend HUF 105 million on other infrastructure investments, including a roughly 20% expansion of its vehicle fleet.
With its revenues of HUF 7.9 billion, TNT controls some 40% of Hungary’s express delivery market, Janosi said. Based on available figures, TNT is the market leader in Hungary, he added. While there are no reliable statistics on the sector, with total revenues estimated anywhere between HUF 15-25 billion, “we believe that the five largest market players had revenues around HUF 20 billion last year,” he said. According to his estimates, the segment grew by 10% in 2004.
