PostNL continuing investment in Postcon
Following a strategic review of its international activities, PostNL has decided to continue investing in its German operation, Postcon. In a statement issued today (14 April), PostNL said that its decision was based on the “improved performance” of Postcon, which PostNL believes has “growth potential in the German mail market”.
But PostNL added that, in order to “fully realise” that growth potential, it has decided to sell the last mile operations in Frankfurt and buy out the minority shareholder of Postcon National. Both transactions are subject to the approval from the relevant authorities.
PostNL said that it expects Postcon to break even in 2016 and to be profitable thereafter.
“This decision will not impact the 2016 outlook for PostNL’s underlying cash operating income,” added the PostNL statement. “The ambition for 2020 will be adjusted to between €285m – €355m, compared to €265m – €335m excluding the German activities.”
As previously reported, PostNL’s strategic review of its international activities (which it undertook in May last year) led to the company agreeing to a management buyout (MBO) of the UK-based operator Whistl, which was completed in October. Also in October, PostNL announced that it would be continuing to invest in the development of its Italian operations.
