PostNL reports “solid” Q2 results
PostNL has reported “solid” results for the second quarter (Q2) of 2016, with stable revenues and parcel volumes up by 16%. The revenue for Q2 2016 was €824m – the same figure that PostNL generated in Q2 2015. Underlying cash operating income was down from €65m to €47m.
The quarter reflected the industry trend for a decline in traditional mail, but growth in parcels.
PostNL saw its addressed mail volume fall by 7.6%, but parcels volume grow by 16&.
Herna Verhagen, the CEO of PostNL, said: “Our second quarter results are in line with expectations. The trend in Parcels continues to be very solid, recording another period of strong volume growth and improving results.
“Mail in the Netherlands delivered results according to plan, taking into account the anticipated impact from our adjusted market approach and the measures on tariffs and conditions announced by the regulator (ACM) in 2015.
“Our restructuring projects continue to generate cost savings as expected. The performance in International is below last year’s results and we expect improvement during the second half of this year. Based on the overall performance for the first half of 2016, we are confident on delivering our previously indicated full year outlook for 2016.”
Verhagen also commented on the impact of PostNL’s sale of its stake in TNT Express: “Following the completion of the sale of our stake in TNT Express, our financial position further improved. The proceeds are earmarked for debt reduction. The rating agencies acknowledged this positive development: both S&P and Moody’s upgraded our credit rating by one notch. The global and European macro-economic and political developments resulted in a further reduction in interest rates. The impact on our pension position, however, was marginal in the second quarter. The current low level of interest rates triggered further analysis of the financial implications for our equity position. This analysis shows a comfortable headroom, if interest rates were to reduce further.
“We are committed to successfully implement our strategy and to realise our ambition to be the postal & logistic solution provider in our chosen markets. We confirm our expectation to gradually improve our underlying cash operating income, starting in 2017, to between €285m and €355m by 2020. This, together with the sale of the stake in TNT Express, and the comfortable headroom if interest rates were to decline further, support our expectation of and commitment to resuming our dividend in 2017.”
