AUSTRIAN POST H1 2018
PARCEL GROWTH COMPENSATED FOR DECLINE IN THE MAIL BUSINESS
- Slight revenue increase in the first half of 2018 of 0.2% to EUR 955.2m
- Parcel growth (+12.1%) compensated for the decline in Mail & Branch Network (–3.7%)
- EBIT up 2.8% to EUR 105.1m
- Earnings per share of EUR 1.12 (–0.5%)
- Cash flow and balance sheet
- Higher cash flow due to special payment of BAWAG P.S.K.
- Conservative balance sheet structure with low level of financial liabilities
- Outlook 2018 unchanged
- Targeted stability in revenue and earnings
The Mail & Branch Network Division accounted for 72.6% of Austrian Post’s revenue. The decrease in revenue in the first half-year of 2018 was due to the fundamental decline in addressed letter mail as a consequence of electronic substitution, as well as lower revenue from addressed and unaddressed advertising mail compared to the previous year and the structural decline in the financial services business. In contrast, the Mail Solutions business showed growth in document logistics and output management. Moreover, the Letter Mail & Mail Solutions business generated growth as a result of increased international e-commerce volumes.
The Parcel & Logistics Division generated 27.4% of Group revenue in the reporting period, continuing its upward trend. The 12.1% increase in revenue was primarily driven by organic volume growth in Austria. Here Austrian Post is profiting from dynamic market growth based on the ongoing online shopping trend. The related competitive intensity and price pressure remain high. “We are optimistic that we will be able to continue maintaining our strong position in this highly competitive market thanks to our outstanding delivery quality and a broad offering of individual customer solutions”, says Austrian Post CEO Georg Pölzl. “On the one hand, we are investing in expanding parcel logistics capacities in order to be able to handle the steep increase in parcel volumes in the future. On the other hand, we are promoting innovations to steadily expand the service offering for the benefit of our customers”, he adds. In this connection, the ground-breaking ceremony for the new parcel centre in Hagenbrunn north of Vienna took place on July 10, 2018. Medium-term sorting capacity should be more than doubled to 100,000 parcels per hour. In addition, the company is steadily pressing ahead with the expansion of its service offering based on self-service and online solutions to make it increasingly easier and more convenient to send or receive parcels.
Austrian Post is also being called upon to adapt its service offering in the mail business to current customer requirements in order to ensure its sustainable success. Austrian Post expanded its product portfolio effective July 1, 2018 by introducing a new letter mail product within the context of universal postal services. In line with international trends, the new product and postal rate model offers the option to choose between time-critical and not time-critical items and was well received in the first weeks.
Group EBIT rose by 2.8% year-on-year to EUR 105.1m on the basis of good revenue development combined with strict cost discipline. The solid development in the first half of 2018 should enable Austrian Post to remain committed to its clear capital market positioning as a reliable dividend stock. “Reliability and stability towards our shareholders and other stakeholders of our company are at the heart of our strategic activities – and we would like to continue along the path we have taken”, adds CEO Georg Pölzl. Accordingly, Austrian Post aims to achieve a stable development in revenue and operating results for the entire year 2018 in line with its prior-year performance.
The entire version is available on the Internet at www.post.at/ir (Reporting).
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