Norway Post’s revenues rose to NOK 6.72 billion (EUR 827.4 million) in the first quarter of thisyear, 17.1% up on the same period in 2006.
Growth was mainly due to acquisitions in the Nordic market and higher industrial activity,said the group. Operations in Sweden, Denmark and Finland brought in over NOK 1.42 billion (EUR175.7 million), 50% more than in Q1 2006, and the share of revenue from the group’s foreigncompanies grew to 21.2% from 16.6%.
The group said it would continue to consolidate in the Nordic postal and logistics markets,which it saw as a prerequisite to being a profitable leader in the region, increasingly a targetfor global players.
Norway Post bought three Swedish companies during the quarter, which it said helped increaseoperating revenues by NOK 651 million (EUR 80.15 million). They were logistics company Transflex,customer communications company Customer View and IT service provider ErgoGroup.
“(We) have strengthened (our) market positions outside Norway during the first quarter,” saysNorway Post’s CEO Dag Mejdell.
“In Norway, the Group has focused on improving the overnight delivery quality of A-prioritymail and managed to comply once more with the licence requirement of 85 per cent in March.”
“Future profit developments will continue to be affected by a fall in the market forA-priority and B-economy letters, fewer banking transactions, a shift towards products with lowermargins and increasing competition,” Mejdell added.
Earnings before taxes (EBIT) during the quarter came to NOK 841 million (EUR 103.5 million),compared to NOK 349 million for the first quarter last year. The earnings were affected by a gainof NOK 623 million on the sale of property at its main letter-sorting centre.
EBIT margin for the first quarter – including the property sale – was 12.5%, compared to 6.1%for the equivalent period last year. After taking account of non-recurring effects, earnings beforetax came to NOK 219 million, a reduction of NOK 133 million compared to the first quarter of 2006.
This decline was mainly due to increased costs relating to quality, service, the start-up ofCityMail in Denmark and human resources, Norway Post said.
