The world’s postal operators increased revenues by 3.3% in the first six months of this year, with parcels growth driven by e-commerce outweighing declining mail volumes, figures from the International Post Corporation (IPC) show.
The 3.3% growth reflects a positive outlook for the sector despite the significant challenges that lie ahead, IPC said. The industry’s financial performance in the short term looks to be improving, with both average revenue growth and operating margins at the group level increasing in the first half of 2015.
The results were in part driven by improved performances across both mail and parcels business units. Compared to the same period in 2014, average revenue growth remained stable for mail (0.2%) but doubled for parcels (10.5%), while margins strengthened for both divisions, according to the association’s analysis.
Herbert-Michael Zapf, President and CEO, IPC said: “In 2014, we have seen the continued rise of e-commerce, the posts’ main growth driver, and this trend has been again confirmed in the first half of 2015. The global shift towards e-commerce and new media has revolutionised the way the postal industry cooperates with operators and the way they interact with customers.”
As the number of middle-class, tech-savvy internet users grows worldwide, businesses and consumers will continue to embrace online shopping. According to estimates, by 2019, the global e-commerce market will be worth more than €1,200 billion, with Asia Pacific representing the largest regional market.
The parcels segment remains a key driver of postal growth. Parcel and express volume grew by 6.3% in 2014 on average, though this was slower than the overall growth in e-commerce. International parcels and express volume continues to increase and now represents 16.3% of total parcels and express volume, IPC said.
Zapf commented: “While the global postal parcel volume growth remains above GDP growth on average, it lags behind online retail growth, showing the ongoing growth potential for posts.”
Total mail volume fell by 3.9% in 2014 on average, although admail continues to experience a more moderate decline (around 2%). E-substitution remained the primary driver of mail decline across markets, with digitisation affecting a diverse range of market segments including corporate advertising and government administration. Results for posts’ mail divisions remained positive on average however, thanks to cost efficiency initiatives and innovation. Mail remains the industry’s primary revenue source, though its share of total industry revenue fell to 44.8% in 2014.
The figures were published yesterday in IPC’s new report, the IPC Global Postal Industry Report Key Findings. The full IPC Global Postal Industry Report is published yearly and provides a comprehensive and detailed review of industry trends and operator performance.
