Nordic postal operators Posten and Post Danmark have released mixed nine-month financial results asthey gear up to merge on January 1, 2009.
Sweden’s Posten increased group revenues by 4% to SEK 22,783 million during January-September2008, but its operating earnings dropped 19% to SEK 1,579 million. In Q3, sales rose 5% butoperating profits dropped 26%.
The mail business, Posten Messaging, saw nine-month revenues drop 2% to SEK 12,137 millionand its operating profit slumped 35% to SEK 1,056 million. In Q3, its sales fell 1% and operatingprofits were down 41%. The revenue drop was driven by lower volumes while higher costs hit profits.
Posten Logistics, however, continued its acquisition-based growth with nine-month revenues up26% to SEK 7,619 million while operating profits improved 58% to SEK 339 million. Q3 revenues grew29% and operating profits rose to SEK 115 million from the previous year’s SEK 18 million.
The parcels business increased January-September revenues by 31% to SEK 5,122 million and Q3revenues by 37%. Sales were boosted by the establishment of the MyPack B2C service in Norway andSwedish export parcel volumes, while an agreement was signed to extend the MyPack service toFinland.
President and CEO Lars Nordström commented: “Turbulence in financial markets and increasinguncertainty about the economic slowdown makes it difficult to assess the eventual impact on demandfor Posten’s services. However, we anticipate that the slowing economy will spur the transition toelectronic communication.” Posten will undertake more cost-cutting to respond to weaker demand, hesaid.
Separately, Post Danmark announced its nine-month results, showing revenue growth of 1.2% toDKK 8,923 million. Operating profits improved by 23% to DKK 726 million. A further DKK 155 millionwas contributed by associates and ventures, largely from the stake in Belgian Post. Pre-tax profitwas up 60% to DKK 852 million.
The Danish postal operator increased mail revenues despite volume loss, while parcels revenueand volume grew comfortably compared with the same period last year. It held operating costs stablethanks to lower staff costs, and thus improved its operating profits.
Referring to the planned merger of Posten and Post Danmark as of January 1, 2009, Postenpresident and CEO Lars Nordström commented: “Now we are waiting for our owners to sign a finalagreement to merge Posten and Post Danmark. Both companies are well prepared to quickly form acommon organization capable of realizing the synergy effects that have been identified and makingthe most of the business advantages generated by the merger, as soon as the owners have finalizedthe agreement.”
