PostNL “on track to achieve full year 2015 outlook”
PostNL has announced that its third quarter (Q3) results indicate that it is “on track” to achieve its full year 2015 outlook. Revenues for the quarter were €780m, €9m less than the same period last year, while underlying cash operating income was down €8m to €23m.
Addressed mail volume declined by 11.2%, whereas parcel volume increased by 8.6%. The company said that it expected the full year underlying cash operating income to be between €280m and €320m.
Commenting on the results, Herna Verhagen, CEO of PostNL, said: “Our performance in the third quarter is in line with our expectations. We are on track to meet our full year outlook. We expect a seasonally strong fourth quarter that will benefit from two extra working days.
“In Mail in the Netherlands, cost savings and price increases did not fully compensate for the volume decline and autonomous cost increases. We expressed our concern about adverse effects of measures by ACM concerning the 24 hours bulk mail volumes that could hamper the reliability and accessibility of postal delivery in the Netherlands and limit PostNL’s competitive position.
“Parcels continues its volume and revenue growth. Volumes were up 8.6%. Higher costs related to subcontractors impacted the result as expected. We saw improvement in our International result. The strategic review of our German activities is still in progress.
“Our financial position developed positively with net cash improving compared to Q3 2014. The decrease of the equity position in Q3 reflects the decline in the share price of TNT Express and a negative impact on our pension position.”
