Norway Post announced today that it increased its nine-month revenues by 19% thanks to continuinggrowth and diversification in express, logistics and IT services, but its operating profits dropped
due to the end of a government contract and lower banking revenues.In overall terms, Norway Post’s operating revenues increased by 19% to NOK 17,009 million(EUR 2.09 million) (EUR 19.17 million) as of 30 September 2006. The growth was due to acquisitionsand positive market developments in the fields of direct mail advertising, logistics and ICT.Foreign revenues doubled to 17.2% of the total, following 131% growth in Sweden, Denmark andFinland.
But earnings before income and taxes (EBIT) came to NOK 839 million, NOK 156 million lessthan at the same time last year as a result of the termination of government procurements and areduction in revenues from banking services. The net EBIT margin dropped to 4.9% from 7.0% one yearearlier. The Group’s operating income (EBITDA) amounted to NOK 1,380 million as of 30 September2006, compared to NOK 1,805 as of 30 September 2005. The return on invested capital (ROIC) for the12-month period ending on 30 September 2006 was 19.6 per cent, compared to 34.2 per cent as of 30September 2005. The return on equity for the 12-month period ending on 30 September 2006 was 15.7per cent.
”The results show that we are following our strategy of achieving profitable growth in theNordic region. Norway Post is further developing its operations in the fields of mail, logisticsand ICT in the Nordic region in order to compensate for the decline in A-priority and B-economypost and banking transactions,” said Group CEO Dag Mejdell of Posten Norge AS.
The Post Segment’s operating revenues were 4.5% lower than for the corresponding period lastyear. This reduction was mainly due to the termination of government procurements worth NOK 245million and a NOK 177 million decline in revenues from banking services. Earnings before income andtaxes (EBIT) for the Post Segment came to NOK 693 million as of the third quarter, compared to NOK1,144 million for the corresponding period last year.
The total letter volume handled by the parent company as of 30 September 2006 increased by4.2% compared to 30 September 2005. The volume of A-priority and B-economy mail declined by 1.8%,while unaddressed direct mail advertising increased by 10.9%.
The Express Segment’s operating revenues rose by 10% to NOK 2,981 million (EUR 0.37million) as of 30 September 2006. The parent company’s total parcel volume was 3.4% down butinternational parcel volumes, via the subsidiary PNL, increased by 12.1%. Earnings before incomeand taxes (EBIT) for the Express Segment came to NOK 192 million (EUR 23.59 million) as ofthe third quarter, compared to NOK 92 million (EUR 11.31 million) for the corresponding period lastyear.
The Logistics Segment’s operating revenues rose 78% to NOK 5,062 million, mainly due to theacquisition of Frigoscandia, HSD Transport AS and the Johs Lunde Group’s refrigerated transportoperations. Norway Post bought Holmskau Transport AS, Blomquist Transport og Spedisjon AS and theDutch company Scanex B.V. in the 3rd quarter. Earnings before income and taxes (EBIT) for theLogistics Segment came to NOK 96 million as of the third quarter, compared to NOK 140 million forthe corresponding period last year.
The IT subsidiary, ErgoGroup, increased external revenues by 30% to NOK 2,545 million due tonew contracts and acquisitions. Its EBIT rose to NOK 195 million, or NOK 127 million more than atthe same time last year.
