Increased revenues and costs for Norway Post
Norway Post’s revenue in the first quarter. The operating revenues increased by 4pct to MNOK 6 997.
The earnings before non-recurring items came to MNOK 74, compared to MNOK 219 in the first quarter 2007. The profit performance in Q1 is influenced by the reduced volume during the Easter week. Easter fell in March in 2008, while it was in April in 2007. The earnings before non-recurring items as at 30 April (first four months) came to MNOK 208, an improvement of MNOK 35 compared to the corresponding period last year.
It was primarily developments in the Mail segment and the Easter effect that made a negative contribution to the quarterly result. Although the letter volume is increasing slightly, the decline in the volume of addressed letter products and banking transactions at post offices is continuing.
Norway Post’s Nordic operations improved during the quarter and now provide around 25 per cent of the Group’s total revenues. The Q1 operating revenues from activities outside Norway came to NOK 1.7 billion – a rise of 19.2 per cent compared to Q1 2007.
The Group is experiencing increased competition in all its business areas. The EU has decided on a liberalisation of the postal market in Europe and this will lead to full competition as from 2011. On 1 April of this year, Sweden Post and Post Denmark announced that they are to merge to form a large Nordic postal and logistics group.
One of the most important means of improving cost effectiveness and ensuring a high delivery quality is the new high-tech letter centre at Robsrud outside Oslo. This facility is under construction and is expected to be finished in 2009.
Acquisitions and growth in the Logistics and IT segments contributed to a growth in Norway Post’s revenue in the first quarter. The operating revenues increased by 4pct to MNOK 6 997.
The earnings before non-recurring items came to MNOK 74, compared to MNOK 219 in the first quarter 2007. The profit performance in Q1 is influenced by the reduced volume during the Easter week. Easter fell in March in 2008, while it was in April in 2007. The earnings before non-recurring items as at 30 April (first four months) came to MNOK 208, an improvement of MNOK 35 compared to the corresponding period last year.
It was primarily developments in the Mail segment and the Easter effect that made a negative contribution to the quarterly result. Although the letter volume is increasing slightly, the decline in the volume of addressed letter products and banking transactions at post offices is continuing.
Norway Post’s Nordic operations improved during the quarter and now provide around 25 per cent of the Group’s total revenues. The Q1 operating revenues from activities outside Norway came to NOK 1.7 billion – a rise of 19.2 per cent compared to Q1 2007.
The Group is experiencing increased competition in all its business areas. The EU has decided on a liberalisation of the postal market in Europe and this will lead to full competition as from 2011. On 1 April of this year, Sweden Post and Post Denmark announced that they are to merge to form a large Nordic postal and logistics group.
One of the most important means of improving cost effectiveness and ensuring a high delivery quality is the new high-tech letter centre at Robsrud outside Oslo. This facility is under construction and is expected to be finished in 2009.
MAIL DIVISION
This division’s operating revenues fell to MNOK 3 234, compared to MNOK 3 254 in the first quarter of 2007. The division’s Q1 earnings came to MNOK 64, compared to MNOK 224 in 2007. The Easter effect and the fall in the volume of addressed letter products are the main reasons for the reduction in the earnings.
As from 1 April 2008, Norway Post was the Nordic postal company with the highest household coverage. The expansion of CityMail in Sweden has led to the Group now distributing post to 2.3 million Swedish households.
During the first quarter, 86.3 per cent of the A-priority mail in Norway was delivered overnight. This is an improvement of 5.2 percentage points compared to Q1 last year and is better than the licence requirement.
LOGISTICS DIVISION
The Logistics Division’s operating revenues rose to MNOK 3 115 in the first quarter, compared to MNOK 2 973 in the first quarter 2007. The division achieved earnings of MNOK 115, up from MNOK 109 in the corresponding period last year. The main reasons for this growth are acquisitions and a large increase in volume.
The division started to install 40 parcel delivery machines in Norway and Sweden in the first quarter. These will improve the Group’s position in the online shopping and post order segment in the Nordic region.
IT DIVISION
This division’s operating revenues rose by 12.7 per cent to MNOK 1 498 in the first quarter. The division’s earnings also increased and came to MNOK 62, compared to MNOK 40 on the same date last year.
This growth is due to a large volume of orders from both new and existing customers as well as to the acquisition of Bekk Consulting. The division’s organic growth rate was 7.5 per cent.
1.00 NOK = 0.197182 USD
