Austrian Post CEO: We see ourselves strategically well positioned
Austrian Post has published its 2024 figures, revealing revenue and increased earnings in all divisions.
Revenue 2024
- Revenue +13.9% to EUR 3,123.1m (+9.2% excluding Parcel Turkey)
- Declining letter volumes with increasing parcel volumes
- Good basic trends and positive impetus from elections in 2024 as well as the currency situation Turkish lira
- Mail & direct mail +4.1% to EUR 1,239.8m
- Parcel & Logistics +20.9% to EUR 1,712.5m (+12.7% excluding Parcel Turkey)
- Branch & Bank +19.5% to EUR 201.5m
Result 2024
- EBITDA +8.0% to EUR 422.7m
- EBIT +9.0% to EUR 207.3m
- Earnings per share from EUR 1.96 to EUR 2.04
Cash flow, balance sheet and dividend
- 2024 operating free cash flow of EUR 253.9m (+14.6%)
- Equity of EUR 761.6m as at 31 December 2024
- Dividend proposal to the Annual General Meeting on April 9, 2025: EUR 1.83 per share (+2.8%)
Outlook for 2025
- Slight increase in sales as the Turkish lira continues to develop
- Target of achieving earnings (EBIT) in the region of EUR 200m remains unchanged
Overall, the year 2024 went very well for Austrian Post. This was in a challenging economic environment – characterised by a weak economy, which had a dampening effect on the investment climate of companies, but also on the cautious purchasing behaviour of private households. On the other hand, the increasing use of postal voting in Austria – especially in the National Council and European elections – provided positive impetus. Online retail also showed revenue growth, with Austrian Post delivering more than 500 million parcels in the regions of Austria, Southeastern and Eastern Europe, Turkey and Azerbaijan for the first time in 2024. “Austrian Post was able to achieve double-digit revenue growth in the past financial year, thus defying the weak economic environment and inflation as well as fierce competition,” says Walter Oblin, CEO of Austrian Post. “We see ourselves strategically well positioned. The transformation from a steadily declining letter mail business to a growing parcel business and thus also to more internationalization is progressing well,” Walter Oblin continues.
The Post Group’s revenue increased by +13.9% to EUR 3,123.1m in 2024. Excluding sales in Turkey, sales also increased by 9.2%. An increase was recorded in all divisions over the course of the past year. Revenue in the Mail & Direct Mail Division increased by 4.1% to EUR 1,239.8m and was impacted by the structural decline in addressed letter mail volume of 6% due to electronic substitution. The tariff adjustments as of 1 September 2023 and the super election year 2024 had a positive effect. In direct mail, a weak economic environment with a structural decline in certain customer segments (e.g. furniture retail, mail order) was observed. The Parcel & Logistics Division generated revenue growth of 20.9% to EUR 1,712.5m in the reporting period. The parcel business developed very positively in all regions. Strong sales growth was recorded in Turkey in particular, influenced by high inflation and the exchange rate of the Turkish lira. Excluding the parcel business in Turkey, revenue also rose by 12.7%. The Branch & Bank Division generated revenue of EUR 201.5m (+19.5%) in 2024. The increase in the number of customers of bank99 and the development of the interest rate landscape in the past financial year made a positive contribution to the division’s revenue.
Austrian Post also had a very successful year in terms of earnings. EBITDA increased by 8.0% to EUR 422.7m and earnings before interest and taxes (EBIT) rose by 9.0% to EUR 207.3m. Net income for the period in 2024 amounted to EUR 145.9m (+5.2%). This results in earnings per share of EUR 2.04, compared with EUR 1.96 in the same period of the previous year (+4.1%). Based on the solid performance and balance sheet situation, an attractive dividend of EUR 1.83 per share (+2.8%) will be proposed to the Annual General Meeting on April 9, 2025. This corresponds to a payout ratio of 85% of net income and a dividend yield of 6.4% as of the closing price on December 31, 2024.
The fundamental trends in the European mail and parcel markets have been stable for years and are likely to continue in the future: The growth in parcel volumes, driven by increased national and international e-commerce orders, continues to contrast with a continuous decline in addressed and unaddressed letter and advertising volumes. These developments are taking place against the backdrop of a market environment with improved but still weak economic growth in many European countries. After the strong increase in revenue of 13.9% in 2024, which was driven by positive one-off effects, consolidation is expected for 2025. Austrian Post’s goal for 2025 is to achieve slight revenue growth, provided that there is a certain continuity in the development of the Turkish lira. Revenue growth coupled with cost discipline are necessary to ensure the desired stability of Austrian Post. As a result, the target of achieving earnings (EBIT) in the region of EUR 200m in 2025 remains unchanged.
The need for investment will shift in the coming years, with a focus on the growing markets of Southeastern and Eastern Europe as well as Turkey. The total capital requirement (CAPEX) for 2025 is expected to be in the range of recent years. In addition to replacement investments, the focus is on international growth investments and investments to decarbonize logistics. Austrian Post’s goal remains to combine growth and dividend strength. The cash flow generated from operations is intended to continue to ensure the necessary basic investments and an attractive dividend policy.
“We owe our quality leadership to the dedicated employees who work with full commitment every day – for this our highest recognition. Together, we will continue to be the preferred partner of our customers in the future,” says Walter Oblin.
