Sound Nordic growth for Norway Post

Norway Post is today presenting its financial statements for the first quarter 2007, which show that its total operating revenue rose by 17.1 per cent to NOK 6 720 million.
The Group’s earnings before taxes (EBIT) came to NOK 841 million, compared to NOK 349 million for the first quarter last year. The earnings were affected by a gain of NOK 623 million on the sale of property at Biskop Gunnerus gate 14B (Norway Post’s Letter-sorting Centre). EBIT margin for the first quarter – including this sale – was 12.5 per cent, compared to 6.1 per cent for the equivalent period last year.

After taking account of non-recurring effects, the earnings before tax came to NOK 219 million, a reduction of NOK 133 million compared to the first quarter 2006. This decline is mainly due to increased costs relating to quality, service, the start-up of CityMail in Denmark and human resources.

The growth in Norway Post’s revenue was mainly due to acquisitions and a high level of activity in industry. Norway Post bought three Swedish companies during the quarter: ErgoGroup bought SYSteam AB, an IT service provider, while Posten Norge bought Transflex AB, a transport and logistics company, and Customer:View AB, which provides individualised customer communication services.

“Norway Post has strengthened its market positions outside Norway during the first quarter,” says Norway Post’s CEO Dag Mejdell. “In Norway, the Group has focused on improving the overnight delivery quality of A-priority mail and managed to comply once more with the licence requirement of 85 per cent in March.”

Acquisitions in the Nordic market helped to increase the Group’s operating revenues by NOK 651 million, while the operating revenues from continued operations rose by 5.8 per cent. The operations in Sweden, Denmark and Finland achieved operating revenues of NOK 1 427 million – 49.5 per cent more than in the corresponding period last year. Foreign companies accounted for 21.2 per cent of the Group’s total operating revenues, compared to 16.6 per cent during the first quarter 2006. The operating revenues were divided among the Group’s divisions as follows: the Post Segment – NOK 3 229 million; the Logistics Segment – NOK 2 973 million; and the ICT Segment – NOK 1 329 million.

At the end of the quarter, the Group had 23 164 full-time equivalents, compared to 20 440 at the end of the first quarter 2006.

MARKET OUTLOOK
Norway Post aims to be a leader in the Nordic region and participates actively in the consolidation of the Nordic postal and logistics markets. This is a necessary prerequisite for ensuring continued profitability and strong market positions. Customers are becoming more and more international, the Nordic region is one market and large global players are competing for customers in the Nordic region.

“Future profit developments will continue to be affected by a fall in the market for A-priority and B-economy letters, fewer banking transactions, a shift towards products with lower margins, and increasing competition,” says Dag Mejdell.

Norway Post expects its individual business areas to continue developing positively in the future.

FOR MORE INFORMATION, PLEASE CONTACT:
Kjell S. Rakkenes, Norway Post’s chief press officer, mobile phone: +47 905 52 956
Norway Post’s 24-hour press telephone: +47 951 48 000
Please also visit http://www.posten.no/Portal/NyheterPresse/ for more information