Swiss Post said today it increased net profits by 11.5% over the first three quarters of 2009 aftera half-year decline thanks to strong growth for its financial services. But mail volumes again
dropped sharply.The Swiss postal group increased nine-month profits to CHF 553 million, an 11.5% increase onthe same period last year. Over the first half of the year, net profits had been down 16% at CHF358 million. Operating profits from January to September improved to CHF 559 million from CHF 499million. Revenue, however, fell 2.5% to CHF 6,310 million, leaving the operating profit margin at8.9% compared to last year’s 7.7%.
The improvement in profits is attributable mainly to the success of PostFinance, which liftedits operating profit by 76% to CHF 351 million. In addition to the above-average growth in newcustomers and customer deposits, the much smaller scale of writedowns required was responsible forthis increase, Swiss Post pointed out.
The core letters business, PostMail, saw the volume decline continue unabated over the firstnine months of 2009, with 4.9% fewer addressed letters than in the same period of 2008. Theeconomic crisis has reinforced the decline resulting from electronic substitution and volumeconsolidation by customers. In addition, the implementation of price cuts for letters on 1 July2009 impacted on revenues. As a result of these developments, PostMail revenues dropped 3.8% to CHF2,047 million and its operating profit declined 9% to CHF 141 million. This represented a 6.9%profit margin, slightly lower than last year.
PostLogistics had a 2.6% revenue decline to CHF 1,087 million but improved its operatingprofit fractionally to CHF 26 million. Parcel volumes remained largely stable. Swiss PostInternational, the international mail business, improved operating profits significantly by 86% toCHF 39 million but revenues dropped back 3.2% to CHF 751 million.
Investments came to CHF 257 million, some CHF 43 million below last year’s figure. In thepast nine months they were again financed completely by resources generated by Swiss Post itself.
Owing to the persistently difficult economic situation and the effects of price cuts in theletter segment, Swiss Post is expecting the results for the year as a whole to be lower than thatof last year.
