PostNL says Q3 results are “according to plan”
PostNL – which is currently the subject of an unsolicited offer from bpost – has this morning reported that its results for the third quarter (Q3) of 2016 were “according to plan”. Revenues for the quarter were stable at €770m (down €10m on Q3 2015), while the underlying cash operating income was up €4m to €27m. The profit for quarter was up €2m to €20m.
The addressed mail volume declined by 5.9%, but parcels volume were by 12%.
Commenting on the results, Herna Verhagen, CEO of PostNL, said: “Our third quarter results were in line with expectations. The year-to-date performance gives us confidence in delivering our full year outlook. We reconfirm the earlier given range for the 2016 estimated underlying cash operating income of between €220 million and €260 million.
“The trend in Parcels continued to be very solid. We recorded another quarter of strong volume growth and improved results, even though milk powder volumes declined. Mail in the Netherlands again delivered results according to plan, taking into account the volume decline, the impact from our adjusted market approach and the measures announced by the regulator (ACM). Our restructuring projects continue to generate the expected cost savings. The performance in International improved as we anticipated.
“In the third quarter we made further progress in innovation, one of the drivers of our strategy. Our Return on Demand service, the collection of return parcels at home, is now available nationwide and we see growing demand for our same-day parcel delivery proposition. The acquisition of Yourzine and Searchresult will allow us to further extend our capabilities in data-driven marketing services, underpinning our direct marketing proposition. All these are steps that will help us to realise our aim to be the postal & logistic solution provider in chosen markets.
“Furthermore, we further improved our financial position, by using part of the proceeds of the sale of our stake in TNT Express to reduce our debt. We re-iterate our expectation of and commitment to resuming dividend in 2017.”
As previously reported, bpost last week signalled its continuing interest in combining with PostNL.
On Sunday (6 November), bpost’s Board unanimously approved a renewed and improved proposal. PostNL responded to this latest move by saying: “The Supervisory Board and Board of Management of PostNL are reviewing and considering bpost’s unsolicited proposal with the support of financial and legal advisors, acting in accordance with their fiduciary duties. In doing so, they will carefully consider the interests of all of PostNL’s stakeholders.”
