Norway Post increases earnings
Norway Post has announced an increase in earnings for 2010. The company recorded earnings of NOK 943m, up NOK 172m on 2009 levels.
This was achieved due to cost-cutting measures and despite a slight drop in operating revenues, the company confirmed.
Group operating revenues amounted to NOK 2.25bn in 2010, 0.7% less than in 2009.
Company revenue increased by 4% in Q4 2010 compared to Q4 2009.
Norway Post CEO Dag Mejdell said: “The mail and logistics markets were characterised by low levels of activity last year following the financial crisis.
“The Spinnaker efficiency programme has made Norway Post stronger following the downturn. We are now seeing signs of increased activity in the market.”
For the 2008-2010 period, the Spinnaker efficiency programme had an accumulated effect of NOK 1.9bn.
This programme consists of a number of measures to reduce costs and increase revenues in the Group.
The earnings before interest and taxes (EBIT) for 2010 were NOK 1.38bn more than in 2009.
Norway Post said that this was “mainly due to the recognition of NOK 759m as income in connection with positive non-recurring effects of the transition to a new contractual early retirement scheme as from 2011”.
In terms of logistics, 2010 was characterised by “low demand and stiff competition”.
Parcel volume grew by 5.2% and the Logistics Segment’s revenues increased by a total of NOK 130m in 2010, compared to 2009.
For the business’ mail arm, letter volumes fell in 2010 by 7.2% (A-mail & B-mail). This was attributed to e-substitution, following a global trend.
However, Norway Post reported that unaddressed mail advertising increased by 5.7% in 2010.
In January, Post&Parcel reported that the company is launching a new digital mail system, offering a digital mailbox in addition to the traditional physical mailbox.
Norway Post said it remains focused on developing its mail services in line with customers’ needs while also reducing the State’s costs relating to unprofitable postal and banking services.
A report recently published by Copenhagen Economics shows that “there are grounds for totally or partially doing away with Norway Post’s banking obligation”, a statement said.
Mejdell added: “Independent surveys confirm that there are grounds for making changes to the postal services in line with new customer requirements.
“Norway Post has asked the Norwegian minister of transport and communications to consider changes which balance social considerations against new customer needs while also reducing the amount debited to the national budget.”
