Performance improvement driven by higher income and lower expenses
In the first half of 2008, Post Danmark achieved a profit before tax of DKK 616 million compared with DKK 355 million in the same period last year.
The profit performance for the half-year was somewhat better than expected. Income rose nearly 2 per cent, while expenses were almost 1.5 per cent below last year’s level. The fall in expenses resulted from, among other things, a downward adjustment of DKK 126 million made in relation to the Group’s pension adjustment obligation, reflecting the effect of a gradually later age of Post Danmark employees when they retire. Lastly, the financial statements showed an increase in income from the Belgian postal company De Post – La Poste.
The financial statements were affected positively by the fact that it has been possible for Post Danmark to implement staff reductions due, among other things, to the major changes made in the distribution structure of the company. Changes that also equip Post Danmark for future challenges of a heated labour market.
Since Post Danmark introduced the new, low-priced C letter, though increasing steadily, volumes for this product have developed more slowly than expected with a temporary earnings improvement in the first half-year as a result.
As previously announced, Post Danmark published the plans for a merger with the Swedish Posten AB earlier this year. The parties are still aiming at a merger with effect from January 2009. Relating expenses for Post Danmark are expected to amount to approx. DKK 75 million this year.
– The necessary financial consolidation of Post Danmark was achieved in the first half of 2008, enabled to some extent by the investment in Belgium as well as by the pleasant situation that more of our employees decide to stay longer with Post Danmark before age retirement, Helge Israelsen, CEO, says.
Finally, the Group announces that, in continuation of the planned merger with Posten AB, Post Danmark and Posten Norge AS have signed an agreement on the transfer of Post Danmark’s shares in PNL to Posten Norge on the approval of this transaction by the competition authorities in Sweden and Norway. As part of the agreement, Post Danmark will be given the right to carry on the customer relationships with the Danish customers.
Post Danmark’s expectations for the full year of 2008 are maintained. Thus, profit be-fore tax is expected to be somewhat higher than in 2007.
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