Groupe La Poste has unveiled higher profits for the first half of 2010 thanks to growing parceland express volumes, and has raised its full-year profit outlook. The company also plans to offer
mobile phone services in its latest diversification move.The French postal operator increased revenues by 3.1% to €10,590 million between January andJune 2010, which was a 2.7% rise on an underlying basis. The 3.7% drop in mail volumes over thefirst six months was less than expected while the Express/Parcels business recovered strongly, thecompany commented.
The group’s operating profit increased 50% to €678 million, which was 55% higher on alike-for-like basis. The operating profit margin improved to 6.4% from 4.4% in the first half of2009, thus returning to its June 2008 level. The net profit improved by 23% to €478 million,including a €101 million contribution from CNP Assurances.
The mail division had half-year revenues of €5,943 million, which was only 0.9% lower than theprevious year. The revenue decline from lower volumes was partly compensated by higher tariffs,extra working days and growth at Sofipost. The division reduced costs by 1.4% and thus had stableoperating profits of €240 million. This was a slightly higher operating margin of 4%.
The Express/Parcels division increased revenues by 6.2% to €2,330 million. The operating profitimproved by 5% to €171 million, with the operating margin rising to 7.3%.
The GeoPost subsidiaries in France and the rest of Europe achieved strong growth driven byincreased trade and higher market shares, La Poste stated. Volumes increased by 10% but pricesremained under pressure due to intense competition. GeoPost thus increased half-year revenues by7.4% to €1,633 million.
French B2C operator ColiPoste, a separate business unit within the division, increased volumesby 2.4% in the first half-year. This generated a 3.4% rise in revenues to €697 million, withrevenues generated by e-commerce showing a 12% increase.
The financial services division, La Banque Postale, increased its sales by 7.6% to €2,640million and generated an operating profit of €426 million.
The post office network remained essential to La Poste’s commercial activities in the firsthalf-year, accounting for 28% of ColiPoste revenues, more than 18% of mail revenues and 12.5% ofChronopost revenues. The network’s revenues were stagnant at €1,277 million.
Looking ahead, La Poste said it had previously aimed to stabilise its results this year andachieve profits close to 2009 levels. In view of the half-year results, however, it now expects toincrease revenues by 1-2% and generate the same level of profits as in 2008.
Meanwhile, the company also announced it will enter exclusive negotiations with Frenchcommunications group SFR to launch mobile phone services under the ‘La Poste’ brand. The serviceswould be provided by a joint subsidiary in which La Poste held a majority share.
“La Poste and SFR have the ambition of developing a pre-paid and post-paid mobile phone offeringwhich is simple, of a high quality and targeted at a large number of people,” the companystated.
According to French media, SFR, the second-largest French mobile phone company, would operatethe network technically while La Poste would be responsible for marketing and sales. The decisionfollows a tender issued by La Poste earlier this year and would see the postal operator competefrom 2011 onwards with up to a dozen ‘virtual’ mobile phone operators cooperating with one of theestablished networks.
