Tag: France

French national postal operator La Poste said yesterday it expected to record a EUR 700 million net profit in 2006, up by about 25% on the figure of EUR 557 million for 2005.

The 2006 operating margin (operating profit on sales revenue) will be around 3.5%, said the group in a statement. La Poste noted that its balance sheet would be hit by an exceptional reform-linked contribution of EUR 2 billion to the national pension financing system at the end of this year.

Internal investment this year on new hubs in Lorraine and Val de Loire and the modernisation of the postal network (1100 offices) reached EUR 1.2 billion, up from EUR 950 million in 2005.

The group spent a further EUR 550 million on acquisitions for its European express network, an increased presence in publishing ventures by its Courrier mail arm and Banque Postale’s move to take over 100% of its asset management activities.

For 2007, La Poste expects to increase turnover by 3%, excluding external revenue growth, and to improve its operating profit margin to 5.8% thanks to cost controls and reform of its pension financing.

Its mail revenues are budgeted to rise 1% in spite of falling volumes, while parcels and express revenues are expected to rise 7% while the Banque Postale aims for 4% growth.

La Poste will invest about EUR 1.4 billion next year, with 11 new hubs and sorting centres planned as well as the renovation of a further 1000 branches.

France plans to require “the maintenance of the sector reserved” if “the correct operation of the postal public utility” is not guaranteed by the negotiations in progress around the European postal directive, according to an official statement of Matignon.

The thirteenth interdepartmental committee in Europe joined together on Monday morning in Matignon to consider the postal proposal for a directive adopted by the European Commission on October 18. This relates to the opening of competition on January 1, 2009 of the “reserved” sector known as the letters of less than 50 grams.

“France is attached to the existence of a postal universal service of high quality and at an accessible price on the whole of the own territory”, the services of the Dominique de Villepin Prime Minister underlined in an official statement. Consequently, “it will aim at the time, negotiations to guarantee the correct operation of the postal public utility”.