Austrian Post: first half-year results
Second-quarter increase in revenue and earnings leads to stable half-year result and improved cash flow. The business development of Austrian Post in the first half of 2010 proceeded very satisfactorily, reports Austria Post.
A good second quarter revenue featuring a 0.7% revenue increase and an earnings improvement of 5.8% led to a stable development in the first six months of 2010 as a whole. Total Group revenue in the first half-year amounted to EUR 1,150.1m, whereas EBIT was EUR 74.5m, at a comparable level to the prior-year period.
Sales measures and innovations contributed to keeping the volume decline in the Mail Division as low as possible. The revenue increase of 4.3% in the Parcel & Logistics Division showed an ongoing rise in transport volumes. Growth in the core business was even higher in the light of the fact that unprofitable transport logistics operations were terminated in Germany at the end of last year.
In order to counteract structural changes in the postal business, Austrian Post will continue to take all the measures it considers necessary to enhance the productivity of the company. Notable successes with respect to operating costs and direct personnel expenditures could already be achieved in the first half of 2010. Cost reduction measures in Austria as well as the turnaround of Austrian Post’s international subsidiaries are beginning to take hold. The Branch Network Division is also undergoing constant changes. Unprofitable company-operated branches are being systematically converted into postal partner offices. Austrian Post will continue to pursue its strategy of improving service quality and the cost structure.
“We are on the right path, both in terms of the development of our business operations as well as the implementation of strategic measures”, says Austrian Post CEO Georg Pölzl. “We have succeeded in counteracting the revenue decline in the letter mail business for the most part, and exploiting growth opportunities in the parcels segment. Although our cost structure has substantially improved it is absolutely essential to continue working on further enhancing efficiency”, Pölzl adds.
The measures Austrian Post is persistently implementing within the context of its strategic programme Post@2011 are designed to exploit revenue growth opportunities as well as to realise potential cost savings.
The earnings strength of Austrian Post and the efficient use of available financial resources is best demonstrated by the operating cash flow before taxes, which was increased by 14.8% in the first half-year 2010.
Based on this development, we confirm our original forecast for the year 2010. Revenue is expected to decrease by 1% to 2% from the comparable figure for 2009, but the EBITDA margin will continue to be in a range between 10% and 12%.
