Swiss Post aims to hold profits stable this year after higher taxes bit into results over thefirst nine months of 2013.
The company improved adjusted operating profits to CHF 769 million from CHF 682 million lastyear thanks to solid income on the financial and investment markets and good cost management. Butnet profit dropped back to CHF 517 million from CHF 645 million due to the company being fullysubject to taxation for the first time.
Swiss Post saw diverse trends in its four business fields in the first three quarters of2013.
In the communication market, Swiss Post increased its operating result to CHF 178 million fromlast year’s CHF 39 million. Overall revenues were flat at CHF 3.5 billion with lower mail revenues,stable turnover at Swiss Post Solutions and higher post office revenues. The declining mailrevenues, primarily due to the outsourcing of international consignments to the joint ventureAsendia, were offset by higher internal payments for services and good cost management. The volumeof addressed letters fell by 2.3%, whereas the number of unaddressed items increased slightly.
In the logistics market, Swiss Post recorded an operating profit of CHF 94 million, slightlydown on last year’s CHF 99 million. The slightly lower result is primarily due to higher internalpayments for services. Parcel volumes increased year-on-year, both domestically (+ 3.7%) and interms of imports and exports (+ 7.6%), the company said. As a result, revenues grew slightly to CHF1.15 billion.
In the public passenger transport market, PostBus Switzerland Ltd saw operating profits slip toCHF 27 million due to increased pressure on prices from buyers despite higher revenues.
PostFinance remained the main profit contributor with operating profit of CHF 443 million,slightly down on last year’s figure of CHF 494 million. The decrease was primarily due to higherinternal payments for services and lower net interest income.
Swiss Post said its financial results were also affected by three significant one-off items in2013. These were an initial, one-off recognition of deferred taxes of CHF 943 million, resultingfrom full liability for taxation with effect from 1 January 2013, a CHF 444 million change inpension costs and a CHF 105 million provision for the value of stamp sales.
Looking ahead, Swiss Post said that in light of its current position it expects to record a goodgroup profit for 2013 as a whole, although possibly slightly below the previous year’s level.
