Norway Post today reported continued growth in revenues for the first half of 2007 but a decreasein earnings compared to last year due to higher personnel and transportation costs and the
establishment of CityMail in Denmark.The group increased its total operating revenues for the first six months of the year by17.8% to NOK 13.4 billion (EUR 1.69 billion). The ICT and Logistics segments contributed to thispositive development following acquisitions and high activity in the marketplace, the company said.
Earnings before taxes for the first six months were NOK 879 million (EUR 110.61 million)compared to NOK 565 million for the same period last year. Earnings were high due to a profit ofNOK 625 million from the sale of Norway Post’s distribution centre building in Oslo during thefirst quarter. The group’s earnings before taxes (EBIT) prior to adjustments for special items wereNOK 268 million, compared to NOK 625 million after the second quarter last year.
The Post segment is the reason for the decrease in earnings, mainly due to increasedpersonnel and transportation costs, and the establishment of CityMail in Denmark. Norway Post saidit is implementing initiatives to strengthen the profitability of the Post segment. The Logisticsand ICT segments show positive growth prior to adjustments for special items.
“Although the group shows healthy growth and earnings development in the Logistics and theICT segments, we are disappointed with the lower results in the Post segment. Increased personneland transportation costs, especially related to the delivery of A-priority mail overnight, requirethe implementation of new initiatives to improve profitability,” commented Norway Post CEO DagMejdell.
