Consolidated revenue rose to EUR 29.3 bn. with all corporate divisions contributing to this increase.
Profit from operating activities amounted to EUR 1.6 bn. in the first half. The cost of integrating our two major acquisitions, Exel and BHW, made its mark on earnings from operating activities as well as net profit, which amounted to EUR 736 mn.
The integration of these two companies is making good headway and progressing as planned.
Consolidated revenue up to 29.3 billion euros in the first half of 2006. Operating profit down slightly to approx. 1.6 billion euros. Exel integration moving ahead fast. Group confirms 2006 EBIT forecast of at least 3.9 billion euros.
For the current year, the Group is expecting revenue of a good 60 billion euros and EBIT of at least 3.9 billion euros. This includes substantial one-time expenses for the integration of Exel and BHW. 2006 revenue for the MAIL Corporate Division is expected to remain stable or rise slightly, while EBIT is forecast at about 2 billion euros. In the EXPRESS Corporate Division, the Group is anticipating single-digit revenue growth in 2006. The operating profit for 2006 should be on a level with the previous year excluding goodwill impairment, i.e. at around 450 million euros. In the LOGISTICS Corporate Division, enlarged by the acquisition of Exel, revenue is expected to exceed 18 billion euros by some margin, with EBIT of at least 700 million euros. In the FINANCIAL SERVICES Division, revenue is forecast to rise, driven in part by the inclusion of BHW Holding AG. This will be accompanied by double-digit growth in operating profit to at least 900 million euros.
While many banks, including Erste Bank, KBC, ING, Deutsche Bank and Fortis, have been quick to grasp the advantages that relationships with post offices–either through distribution arrangements, joint ventures or acquisitions–can bring, many European banks still underestimate the opportunities that working with post offices present.
According to Carl Holsters, a consultant to Post Group, the Belgian post office, as well as having extensive branch networks, post offices have a strong brand name that banks can capitalise on. Indeed, in some countries in Eastern Europe, this is a distinct advantage as local people often distrust their local banks.
While there are many different models that banks can follow when looking to work with a post office, Holsters believes that Netherlands-based ING Group, which fully owns the banking operation Postbank, which in turn owns 50 percent of the postal services operator Postkantoren, has one of the most successful arrangements with a post office. About 50 percent of the country’s population has a Postbank account. Moreover, Postbank and ING Bank in the Netherlands now generate about 15.5 percent of the group’s total profits.
In some European markets, post office banks are being transformed into fully licensed banks and many of them now have a presence that is powerful enough to threaten existing market leaders.
The report gives extensive details of the relationships between banks and post offices in many countries throughout Europe.
Read MoreDutch mail and express deliveries group TNT NV plans to take over a majority stake in PostCon AG, a consortium of customers of German postal services group Deutsche Post AG, it was reported on July 28, 2006.
TNT has already registered for the takeover through its German subsidiary TNT Post Holding GmbH, the German Federal Cartel Office told German daily Die Welt.
TNT (www.tnt.com) expects the decision of the Cartel Office, scheduled for August 2006, to be positive, on grounds of the Deutsche Post’s market dominating position, according to the report.
Read MoreSwiss Post has bought a majority in German direct marketing and customer management company GHP Holding GmbH, Swiss Post said on July 25, 2006.
Swiss Post has acquired two-thirds in GHP, but has the option to fully take over the German company by the end of 2008.
The purchase price is in the two-digit million euro range.
According to analysts’ estimates, the deal price corresponds to between 11 pct and 15 pct of GHP turnover, or between 30 mln euro (USD37.7 mln) and 40 mln euro (USD50.3 mln). Swiss Post did not comment that.
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