Deutsche Post to include 'STAR' programme in new five-point profitability plan

Deutsche Post, the German postal service operator, has reacted to costly demands by the EU commission and the German postal and telecommunications regulator with the introduction of a five-point plan, the fourth point of which is the so-called ‘Star Programme’, launched in February with the aim of boosting company’s share value. The company is to appeal against a demand by the EU that it repay state subsidies of 850m euros, although this is unlikely to lead to the postponement of the repayment. The costs of the reduction in postage charges demanded by the postal regulator are to be balanced by job cuts and a reduction in the number of post offices and mailboxes.

In addition to the abovementioned exceptional costs, Deutsche Post reports weaker operative business. Ebita for the group slipped from 574m euros to 544m euros for the second quarter owing to an 11.2 per cent slip in Ebita from letter deliveries. The company’s logistics, express and banking activities all showed slight increases in earnings.