Austrian Post satisfied with Q1 figures
Austrian Post declared it was satisfied with its Q1 results as the company recorded increased revenue and earnings. Group revenue stood at EUR 571.3m, a rise by 1.6% compared to 2010 levels. In terms of earnings, an EBITDA of EUR 70.8m (a margin of 12.4%) was recorded. EBIT rose 7.6% to EUR 48.8m for the period. This result was achieved via a “backdrop of measures taken to enhance efficiency,” the company said.
“As originally intended, we succeeded in more than compensating for the volume decline in addressed letter mail by generating growth in direct mail and parcels”, said CEO Georg Pölzl.
Revenue at the company’s Mail Division fell by only 0.2% on a comparable basis. Austrian Post confirmed the “trend towards electronic substitution of letters, the decrease in high value mail items and the reduced weight of mail items” is continuing. This led to a 4% drop in revenue in the Letter Mail Business Area.
However, this decline was offset by the “extraordinarily positive development” of direct mail items. Revenue increased for “both addressed and unaddressed direct mail items, which can be attributed to the positive impact of the improving economic situation at the beginning of the year as well as positive effects in various sectors”. EBIT of the Mail Division rose slightly to EUR 65.1m.
Revenue growth continued throughout the Parcel & Logistics Division – up 6.4% to EUR 208.5m in the first quarter of 2011. This was “characterised by rising parcel volumes and ongoing price pressure. Growth was generated in Austria as well as in Germany/Benelux and in South East and Eastern Europe,” the company said, adding that “top priority here is to improve efficiency and profitability”.
Austrian Post is also continuing with the transformation of its Branch Network Division. The company has overseen an expansion in the number of branches. It now operates 1,866 postal service points, including 1,164 third-party operated postal partner offices.
A statement said: “The organisational structure of the Branch Network is currently undergoing change which also affects its revenue and cost structure. Revenue derived from the financial services business is subject to a new cost-based compensation plan concluded with the banking partner BAWAG P.S.K. Revenue in the Branch Network attributable to retail products declined, particularly in the case of telecommunication products.
“The declared objective is to exploit this transformation as the basis for sustainably improving divisional earnings in 2011 compared to the previous year.”
For the remainder of the year, Austrian Post confirmed a target to “generate revenue growth of 1-2% and to improve profitability to the upper end of the target EBITDA margin range of between 10% and 12%”.
“In addition to these targets, it is also important to develop innovative and online services”, Pölzl concluded.
