Austrian Post today announced double-digit growth in Q1, 2007 revenues and profits thanks mostly toits acquisition of German express operator trans-o-flex. But it warned of falling parcel profits
next year due to expected B2C competition from Hermes.In the first three months of 2007, Austrian Post revenues rose by 29.5% to EUR 575.5 milliondue to first-time consolidation of trans-o-flex, which was acquired at the end of 2006, as well asto organic growth.
Group operating profits (EBITDA) improved 11.5% to EUR 77.4 million, EBIT was up 12.5% to EUR55.1 million and net profit rose 15.4% to EUR 42.7 million. Mail revenues rose by 1.8% to EUR 341.8million but the division’s EBIT dropped 4% to EUR 74.4m, leaving the operating margin at 21%.
The Parcel & Logistics Division increased revenues by 222.4% to EUR 182.9 million, andnow accounts for 31.8% of group revenues. Its EIBT rose 73.2% to EUR 9.7m, representing a 5%operating profit margin. But Austrian Post warned that its domestic parcel business would beimpacted later this year by the expected entry of a new competitor. Germany’s Hermes Logistik hasannounced it will enter the Austrian B2C market in the second half of this year.
In its full-year outlook, Austrian Post said it continues to expect a stable mail market,constant organic revenue, and additional growth to be driven by trans-o-flex. EBIT is forecast toincrease 20%-25% in 2007.
Separately, Austrian Post announced the latest of a spate of acquisitions in Central Europe.It has signed an agreement to buy the German direct marketing company meiller direct, with revenuesof about EUR 112 million and 1,180 employees.
