Post Danmark improved its profits in the first quarter of 2008 thanks to higher revenues and lowercosts.
The company, due to be merged with Sweden’s Posten, increased its Q1 operating profit (EBIT)by 21% to DKK 370 million (€49.6 million) even though its total revenue grew just 1.3% to DKK 3,165million (€424.2 million).
Despite declining volume, mail revenue rose thanks to higher prices while parcels revenue andvolume showed “handsome growth”, Post Danmark said without providing further details.
Pre-tax profit was up 25% to DKK 462 million (€61.9 million) thanks partly to a higher DKK106 million (€14.2 million) profit from associates and joint ventures. This was mainly driven byhigher profits from Belgian Post. The net profit rose 30.2% to DKK 371 million (€49.7 million).
“The profit performance achieved through growing revenue and lower staff costs resulting froma decline in the number of staff is satisfactory,” commented CEO Helge Israelsen.
Post Danmark said it is maintaining its expectations for 2008, which are flat turnover,higher operating profits due to lower costs and a slight rise in pre-tax profit.
