Austrian Post improves H1 profits
Austrian Post has announced strong results for the first half of 2006 following its successful flotation in May with good growth figures for its parcel and logistics business.
The company increased group revenues by 3% to €861.4 million, and improved EBIT by 17.9% to €66.3 million. The EBIT margin advanced to 7.7%. EBITDA for the first half year of €117.9m was up 14.5% compared with last year, pushing up the EBITDA margin to 13.7%. Earnings before tax rose to €67.3 million, 23.2% higher than in the same period last year. Profit for the first half year remained unchanged over the same period last year, as a result of higher taxes and the absence of the earnings achieved in 2005 from discontinued operations (Postversicherung AG).
Revenue growth was driven by both the mail and parcel & logistics divisions, resulting in higher profits since there was only a moderate rise in costs. The Austrian Post share also ended the half-year well, with a June 30 share price of €23.72, which was 25% higher than the issue price of €19.00.
The Mail Division, which generates the lion’s share of revenues, increased external sales in H1, 2006, by 1.9% to €650.5 million. The increase was the result of growth in direct mail (advertising) in Austria and of the first-time consolidation of feibra Hungary, which was acquired in September 2005. The expected negative effects of market liberalisation combined with open access to cluster box units failed to materialise in the period under review, Austrian Post pointed out. The Mail Division’s EBIT of €131.3m in first half 2006 was at the same level as in the comparable period last year.
The Parcel & Logistics Division increased sales in the first half of 2006 by 9.7% to €111.4 million, mainly due to higher volumes in the domestic and international parcel business. Growing Internet-based mail order business led to increased international parcels traffic while Austrian Post generated its first business in its new B2B market. The Parcel & Logistics Division posted EBIT of €9.5 million in the half-year compared to €2 million in the same period last year.
The Branch Network Division raised half-year revenues by 3.7% thanks to more sales of mobile phone, telephone and internet products and generated EBIT of €11.0 million (H1 2005: €3.3 million).
In its full-year outlook, Austrian Post said it expects a stable mail market throughout 2006. Based on present trends, it is unlikely that the further liberalisation that came into effect on 1 January 2006, combined with third party access to cluster box units in Austria, will have any significant impact on Austrian Post’s overall performance in 2006.
Group revenue is expected to increase slightly in 2006, with EBIT projected to grow by 10% to 15% compared to last year’s level of €103.0m. Austrian Post’s medium-term goal is to maintain its EBIT margin in the 7% to 8% range.
