Danish postal operator Post Danmark has announced a 36% fall in net profit for the first quarter ofthis year, compared to same period the year before, due mainly it said to stagnant revenues from
newspaper and unaddressed mail distribution.But the group did see higher parcels revenues and volume, 29% more revenue mainly due to thepurchase of Transportgruppen at the beginning of this year. But parcels in general showed growth,said Post Danmark.
Net profit for the group as a whole slumped DKK 162 million (EUR 21.74 million) to DKK 285million (EUR 38.25 million) from DKK 447 million (EUR 60 million) in Q1 2006. Post Danmark’srevenues totalled just over DKK 3.1 billion (EUR 419 million) in the first quarter of 2007, animprovement of DKK 6 million compared with the first quarter of 2006.
“A lower profit was in particular generated from our core activities,” explained Helge
Israelsen, CEO. “Revenue was stagnant owing to, among other things, a decline in revenue fromthe distribution of newspapers, magazine mail and unaddressed mail. At the same time, expenses rosewith pay increases and more sick absence affecting the profit negatively,” Israelsen added.
This has resulted in Post Danmark adjusting expectations for the overall profit for the yeardownwards. Profit before tax for 2007 is now forecast to be considerably lower than in 2006.
“We anticipate lower revenue from newspapers in 2007 as a result of changes implemented witheffect from this year in relation to the subsidy scheme for the distribution of newspapers,”Israelsen said. “In addition, the decrease in revenue is expected to continue for letters as wellas magazine mail and unaddressed mail.”
Pay increases obtained through collective bargaining this spring were higher than expectedand the profit from Post Danmark’s investment in Belgium’s De Post–La Poste will decrease by justover DKK 130 million (EUR 17.45 million) in 2007 owing to a voluntary early retirement programme.
