Post Danmark has announced a major improvement in profits for the first half of 2008 due to costsavings and a higher profit contribution from its holding in Belgian Post.
In the first half of 2008, pre-tax profit rose by 73.5% to DKK 616 million (€82.6 million)compared with DKK 355 million in the same period last year. Revenues were up by 1.7% at DKK 6,186million (€829 million).
The profit performance for the half-year was somewhat better than expected, Post Danmarksaid. Earnings from ventures and associates soared to DKK 185 million from just DKK 34 million inthe first half of 2007, with higher earnings from the stake in Belgian Post contributing most ofthe increase.
In addition, costs were almost 1.5% below last year’s level. This partly resulted from adownward adjustment of DKK 126 million made in relation to the Group’s pension adjustmentobligation, reflecting the effect of a gradually later age of Post Danmark employees when theyretire. Moreover, Post Danmark was able to implement staff reductions due to a changed distributionstructure.
“The necessary financial consolidation of Post Danmark was achieved in the first half of2008, enabled to some extent by the investment in Belgium as well as by the pleasant situation thatmore of our employees are deciding to stay longer with Post Danmark before age retirement,”commented CEO Helge Israelsen.
Post Danmark said it maintained its expectations for the full year of 2008, includingslightly higher pre-tax profit than in 2007.
