Norway Post has announced nine-month results showing strong growth in revenue but lower earningsdue to higher costs.
Norway Post increased operating revenue for January- September 2007 by 16.4% to NOK 19.8billion, mainly due to acquisitions and an increase in the volume of A (priority) and B (economy)mail as well as an increase in sales of logistics services.
Earnings before interest and taxes (EBIT) as at 30 September 2007 were NOK 1,035 millioncompared with NOK 839 million as at 30 September 2006. Earnings were positively affected by a gainon the sale of property (Norway Post’s letter centre in Oslo) of NOK 625 million in the firstquarter.
After adjusting for non-recurring items, however, the Group achieved earnings of NOK 411million as at 30 September 2007, compared with NOK 872 million for the same period last year.
“The development in earnings has been affected by increased personnel and transport costs. Atight labour market and lack of capacity in the transport industry have also contributed to weakerearnings,” says Dag Mejdell, the CEO of Norway Post. The start-up of CityMail in Denmark alsonegatively affected results.
“Future earnings will continue to be affected by the accelerating growth in wages and pricesalong with increasing competition in the market. A continued strengthening of Norway Post’s marketpositions in both Norway and the rest of the Nordic region is expected to contribute positively tothe total results and value creation,” says Mejdell. Norway Post’s long-term goal is to achieve amarket-leading position as an integrated postal and logistics group in Norway and the Nordicregion.
