Swiss Post today revealed lower profits for the first nine months of 2014 due to a drop inprofits from its financial services business that outweighed better results in the mail and
logistics divisions.Over the first three quarters of 2014, the postal operator’s operating profit dropped by 22% toCHF 632 million while the net profit dropped 8% to CHF 494 million. The decrease was solely due tolower operating profit in the retail financial market since operating profit increased in thepassenger transport market and also improved in the communication and logistics markets thanks togood cost management. Group revenues were slightly lower at CHF 6,183 million.
In the logistics market, Swiss Post recorded an operating profit of CH 97 million, which wasaround CHF 3 million more than in the prior-year period. The increase was due to businessoptimisation measures. Parcel volumes rose by 2% but revenue dropped slightly to CH 1,138 millionas a result of intense competition.
In the communication market, Swiss Post’s revenues were flat with a 2.5% drop in addressedletters compensated by a 2.7% rise in unaddressed items. Operating profits increased by 5.6% to CHF188 million due to positive revenue trends in the Swiss Post Solutions segment and lower expensesin the PostMail segment.
The PostBus regional passenger travel business increased revenues slightly to CHF 627 millionand improved its operating profit by a third to CHF 36 million. This increase was mainly due to theexpansion of services in Switzerland and France as well as to one-off transport revenue,particularly as a result of adjustments to cost apportionment of the fare networks.
But in the retail financial market, PostFinance is still facing a difficult market environmentdue to persistently low interest rates. Its operating profit of CHG 309 million was down by 30% onlast year. Net interest income before impairment remained virtually on a par with the prior-yearperiod despite increased customer deposits, and higher portfolio impairment charges and a rise innon-staff costs led to a drop in results, Swiss Post said.
Looking ahead, Swiss Post said it expects to record a “solid” result for 2014 as a whole inlight of the current position but warned that group profit might drop from last year’s level.
