PostNL today raised its profit outlook for 2013 due to stamp price increases this year and hasfurther hiked prices from January next year.
The company said its underlying cash operating income is expected to be higher than thepreviously stated figure of €50-90 million due to financial results over the last two months sinceprice increases at the start of August.
In addition, the increase in the Christmas 2013 stamp price to 55 euro cents and higher businessrates, is likely to contribute a further €5-10 million in revenues and will also contribute to thisyear’s higher profits, the Dutch postal operator said.
“These and other rate increases, together with rigorous cost cuts, are necessary to compensatefor the expected volume decline and losses from the universal service obligation (USO),” PostNLstated.
Since August 1 this year, a basic letter within the Netherlands costs €0.60, which is six centsmore than before, a letter within Europe costs €0.96 and a letter to an overseas destination costs€1.00. The rate for franking machines is €0.52.
From January 1, 2014, the basic rate for domestic letters sent within the Netherlands willincrease by four cents to €0.64 while the stamp price for international letters will go up to€1.05. For franking machines, the basic rate for letters within the Netherlands will increase to€0.56. The business rates will also increase.
However, the basic rates for shipping parcels will not change.
The new rate announcement follows changes to Dutch postal regulations by the economics ministerHenk Kamp in order to ensure the USO and approval of the measures by the Dutch postal regulator,the Autoriteit Consument en Markt. He stated in his letter to the Lower House on 3 June 2013 thathe was creating extra tariff headroom in order to make price increases in 2013 and 2014possible.
The USO is loss-making for PostNL because the number of letters being sent has fallen strongly.PostNL itself has implemented a series of rigorous restructuring plans to ensure maximum costsavings.
PostNL will provide a full update on its 2013 outlook during the presentation of its Q3 2013results on 4 November.
