German publishing group Axel Springer has confirmed that it is reviewing its future strategy withloss-making mail subsidiary Pin Group.
The mail company, in which Springer holds a majority stake, made an operating loss (Ebita) ofEUR 12 million on turnover of EUR 45.4 million in the third quarter of the year, according toSpringer’s Q3 results published on Wednesday. Over the first nine months, Pin made a loss of EUR47.8 million.
Springer CEO Mathias Döpfner said that Pin is likely to make a full-year operating loss ofabout EUR 50 – 55 million on revenues of more than EUR 350 million.
In response to reports that Springer was in talks with TNT to sell part of its Pin holding tothe Dutch group, Döpfner said that Springer would decide in the coming months “whether and in whichform a combination and cooperation make sense”.
Pin Group and TNT Post are the two leading competitors to Deutsche Post in the Germandomestic mail market, which will be fully liberalised in January 2008.
