Pin seeks nationwide presence in German postal delivery market
German private mail delivery company Pin AG plans to push ahead with its expansion in order to gain nationwide presence and become a strong competitor of market leader Deutsche Post, Pin CEO Bernhard Klapproth said.
Currently, Pin handles 600,000 mail deliveries daily for large corporate clients and is one of Deutsche Post’s biggest competitors in the segment. By comparison, Deutsche Post handles 70 million letters daily.
Pin plans to expand to the cities of Stuttgart and Hamburg. It is already present in Berlin, Leipzig, Cologne and Frankfurt.
Pin, which is majority owned by German publishing groups Axel Springer AG and Georg von Holtzbrinck, expects the two groups to help it secure other large-scale delivery orders. The publishers, which suffer under weaker circulation and advertising markets, see the mail delivery business as a new income source and an opportunity to strengthen their own delivery operations, according to consultancy KPMG. Publishers Sueddeutsche Zeitung and WAZ are also building up a mail delivery business.
Pin expects to increase its turnover to 50.5 mln euro ($62.1 mln) in 2005 from 35.5 mln euro ($43.7 mln) in 2004. In 2006, the company eyes some 60 mln euro ($73.8 mln) turnover. Pin will increase its staff to 1,400 from 1,000 in 2005.
www.handelsblatt.com
Pin plans expansion (Pin macht der Deutschen Post Dampf)
HANDELSBLATTEuropean Intelligence WireHandelsblattHandelsblatt, p 12 08-26-2005
Pin, the German mail delivery service provider, is planning to develop from a regional service provider into a national player competing with the postal service operator Deutsche Post. In addition to covering Berlin, Cologne, Frankfurt and Leipzig, the company is now planning services for Hamburg and Stuttgart, where its main shareholders, the publishers Axel Springer Verlag and Verlagsgruppe Georg von Holtzbrinck, are based. Pin already delivers 600,000 items for large customers each day and therefore counts among the main rivals of Deutsche Post, which handles 70 million letters each day.
The consultancy KPMG comments that the mail delivery service represents an additional source of revenues for the two newspaper publishers, which together own a majority stake in Pin, enabling them to improve utilisation of their delivery capacity in the face of falling newspaper circulation. For 2005, Pin is aiming for turnover up from 35.5m euros to more than 50.5m euros, while an increase to more than 60m euros is targeted for the coming year. The company has shown profits since the end of 2003.
Abstracted from Handelsblatt
