Posten Norway AS with new measures for better earnings

Posten Norway’s operating result (EBITE) in Q3 2016 was MNOK 157, which is MNOK 2 lower than the same quarter last year. The Group is facing a demanding market situation with a progressive decline in mail volumes and a weak logistics market. Sickness absence in Posten Norge continues to decrease and the company’s reputation is strengthened.

Operating revenues in Q3 were MNOK 5 934, a decrease of 1.8 per cent from the same quarter last year. So far this year the Group has had operating revenues of MNOK 18 340, which is on par with last year. So far this year EBITE has been MNOK 378, a decline of MNOK 94 compared to the same period last year.

„The group is now experiencing a strong steady decline in mail volumes. We have covered much of the decline in revenue with major cost-saving measures in 2016, but we will need to implement further new measures to adapt to developments,“ says Tone Wille in Posten Norge.

In the first nine months of the year, addressed mail volumes fell by 11.7 per cent in Norway, while the annual decline in recent years has been between 5 and 8 per cent. So far this year ,the banking and finance sector shows a decrease of 24.2 per cent while public organisations show a decrease of 21.2 per cent.  In light of this development, operating revenue in the mail segment so far this year was MNOK 181 lower than in 2015 and EBITE was MNOK 87 lower. The effect of cost-saving measures contributed to the mail segment in Q3 having an EBITE of MNOK 112 million, which was MNOK 4 better than the same quarter last year.

The logistics segment had an EBITE of MNOK 53 in Q3, MNOK 35 lower than the same quarter last year. So far this year, EBITE has been MNOK 31, a decline of MNOK 84 compared to the same period last year. The market situation in Norway, Sweden and Denmark remained challenging, and competition reduced margins.

„Significant cost-saving measures have been implemented to adapt operations to the weaker market. We believe that many of the measures now taken will have a positive effect on the Group’s operating result.  To strengthen competitiveness in the long term, we are making a significant investment in a new logistics network with 18 terminals in Norway,“ says Wille.

Private e-commerce is increasing and the Group’s overall e-commerce volume grew by 13 per cent year to date.

A steadily growing number of people have a good impression of Posten Norge. In this year’s reputation survey from Ipsos, Posten Norge moved up eight spots to 14th place among large Norwegian companies. 68 per cent have a „very good“ or „fairly good“ impression of Posten Norge. Bring, which is included in the survey for the first time, was ranked 13th.

In Q3 2016, sickness absence for the Group was 5.7 per cent, and for the last 12 months it was 5.9 per cent. This is an improvement of 0.2 per cent compared with the corresponding period in 2015.

From 10 October Eli Giske is constituted as acting CFO.

Quelle: www.posten.no

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