Posten, Norway’s state-owned postal operator, today announced that 2006 revenues had grown 18.4% toNOK 23.7 billion (EUR 2.94 billion) compared to 2005, fuelled by its expanding logistics and
express segments and growing foreign operations.Operating revenue from logistics increased by 70.5% to over NOK 6.9 billion (EUR 855 million)last year, mainly due to the acquisitions of Frigoscandia, HSD Transport AS and the Johs LundeGroup refrigerated transport companies, preliminary accounts showed.
Express sales rose 12.1% to NOK 4.24 billion (EUR 525.6 million). Total parcel volume was1.1% less than in 2005, although international parcel volume delivered by Posten’s PNL subsidiaryrose by 15.2%.
The share of Norway Post’s revenues from foreign operations more than doubled to 17.5% in2006, from 8.6% in 2005.
“The 2006 result shows that Norway Post has succeeded in its strategy of achieving profitablegrowth in the Nordic region. Acquisitions and the further development of our operations havestrengthened our market positions and services within all segments,” commented Norway Post chiefexecutive Dag Mejdell.
However, operating income (EBITDA) fell by almost a quarter to just over NOK 2 billion (EUR248 million), from NOK 2.7 billion (EUR 334.8 million) the year before, mainly due to thewithdrawal of government procurements and lower revenues from banking services.
EBIT rose slightly to NOK 1.3 billion (EUR 161.2 million) from NOK 1.25 billion (EUR 155million) in 2005, although operating margin fell to 5.5% from 6.3%.
The express segment’s operating income (EBITDA) came to NOK 392 million (EUR 48.6 million) in2006, compared to NOK 269 million (EUR 33.5 million) in 2005, earnings growth before tax of almost46%. EBITDA for logistics came to NOK 239 million (EUR 29.63 million), compared to NOK 219 million(EUR 27.15 million) in 2005, up over 9%.
Revenue from the post segment fell by 3.8% largely due to the fall in government procurementsand banking revenue, although Posten said it was well positioned for future growth here havingestablished CityMail in Denmark and expanded CityMail in Sweden.
Total letter volume rose by 4.1%, with unaddressed direct mail advertising increasing 8.8%.Addressed mail fell 1.6% in line with the European trend.
The delivery quality for mail in Norway, measured as the percentage of A-priority maildelivered overnight, was 82.4% in 2006. This is lower than the licence requirement of 85% and wasdue to changes to the distribution network and “workforce challenges” in Q4, Posten said.
