Austrian Post satisfied with results
Austrian Post described its financial results for the first nine months of the year as satisfactory. Group revenue declined during this period. However, the actual decline of minus 0.6% turned out to be very moderate, the company said, adding that growth in the Parcel & Logistics Division almost completely compensates for the revenue drop in the other segments.
Austrian Post said it succeeded in counteracting the downward trend on the basis of efficiency-enhancing measures as well as reductions in operating costs and direct personnel expenditures.
In the first three quarters of 2010, earnings before interest and tax (EBIT) of Austrian Post rose 1.2% from the prior-year level, and even climbed by 10.9% in the third quarter in a year-on-year comparison.
The financial situation of the Group is extremely stable. The cash and cash equivalents at the disposal of Austrian Post totaled EUR 266.5m at the end of September 2010, whereas the operating cash flow before changes in working capital and tax increased by 12.1% to EUR 164.8m.
In the Mail Division, the trend towards the electronic substitution of letters and the reduced weight of mail items posted by customers is continuing. However, intensive efforts to attract new customers as well as positive one-off effects managed to limit the revenue decrease to 0.6%.
The Parcel & Logistics Divisions posted revenue growth in all regions and an overall increase of 3.8% in the first three quarters of 2010.
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.
Successes were achieved with the international cooperation strategy, with two new partners in England and France now expanding the EURODIS parcel network.
The Branch Network Division is undergoing constant change. Unprofitable company-operated branches are continually being converted to postal partner offices.
In the meantime, Austrian Post has opened its 1000th postal partner office, and the total number of postal service points in Austria has risen to 1,866 in Austria. An important step to further develop the branch network was taken with the extension and intensification of the cooperation with the partner bank BAWAG P.S.K. In the future, the full range of postal and banking products and services offered by BAWAG P.S.K. and Austrian Post will be available at more than 500 locations throughout Austria.
In order to effectively counteract the structural changes taking place in the postal business, Austrian Post will continue to take all the measures it considers necessary to enhance the efficiency and productivity of the company.
“Against the backdrop of the upcoming full-scale liberalisation of the Austrian letter mail market as of January 1, 2011, we are confident that we are moving in the right direction. The top priority is to offer efficient and innovative services in line with market requirements,” said CEO Georg Pölzl.
Revenue by division
| EUR m | Q1-3 2009 | Q1-3 2010 | Change % EUR m |
Q3 2009 | Q3 2010 | |
| Total revenue (external sales) | 1,723.2 | 1,713.2 | -0.6% | -10.0 | 567.3 | 563.1 |
| 1,018.7 | 1,011.2 | -0.7% | -7.5 | 330.3 | 329.1 | |
| Parcel & Logistics | 561.5 | 582.9 | +3.8% | +21.3 | 190.4 | 195.8 |
| Branch Network | 141.2 | 117.6 | -16.7% | -23.5 | 46.0 | 37.7 |
| Other | 3.2 | 3.7 | +15.5% | +0.5 | 1.1 | 1.2 |
| Consolidation | -1.4 | -2.3 | -61.2% | -0.9 | -0.5 | -0.7 |
| Working days in Austria2 | 188 | 189 | 66 | 66 | ||
1 External sales of the divisions, 2 Calendar working days
The revenue development of Austrian Post in the first three quarters of 2010 confirmed the forecasted trends. However, the revenue decline of 0.6% turned out to be very moderate. The business development of Austrian Post in the third quarter of 2010 was also in line with the overall trend, with revenue down by 0.7%.
During the first nine months of 2010, revenue of the Mail Division fell 0.7% in a year-on-year comparison (Q3 2010: minus 0.4%), which can be attributed to the gains achieved by the Infomail and Media Post Business Areas. The trend towards the electronic substitution of letters is continuing.
However, the revenue decrease was limited due to intensive efforts designed to attract new customers, positive one-off effects related to elections and an additional working day in the second quarter in comparison to the prior-year period.
The Parcel & Logistics Division featured an ongoing rise in business volume. Although the price situation remains tense, the division profited from good volume development as well as an increase in new customers. Despite the termination of unprofitable transport logistics operations in Germany, revenue in the first three quarters of 2010 rose 3.8% year-on-year and 2.9% in the third quarter compared to the prior-year level.
The revenue and organisational structure of the Branch Network Division is undergoing change. External sales decreased by EUR 23.5m, whereas total costs were reduced by EUR 26.1m. The changed reporting of revenue derived from sales of prepaid phone cards based on the new Austrian VAT regulations contributed EUR 8.1m to the revenue decline.
Income statement
| EUR m | Q1-3 2009 | Q1-3 2010 | Change % EUR m |
Q3 2009 | Q3 2010 | |
| Revenue | 1,723.2 | 1,713.2 | -0.6% | -10.0 | 567.3 | 563.1 |
| Earnings before interest, tax, depreciation and amortisation (EBITDA) | 168.9 | 168.9 | 0.0% | 0.0 | 42.3 | 44.1 |
| Earnings before interest and tax (EBIT) | 93.7 | 94.8 | +1.2% | +1.1 | 18.3 | 20.3 |
| Profit after tax = Profit for the period | 67.4 | 68.1 | +1.0% | +0.7 | 11.2 | 14.0 |
| Earnings per share | 1.00 | 1.01 | +1.0% | +0.01 | 0.17 | 0.21 |
