Swiss Post today announced higher profits for the first quarter of 2011 thanks mostly to itsstrongly-growing financial services business.
The Swiss postal group increased operating profits by 15% to CHF 318 million in January-March2011 and net profits went up by 16% to CHF 319 million. The operating profit margin rose by twopercentage points to 14.4% as revenues dropped back fractionally by 0.6% to CHF 2,214 million. Therevenue decline was mainly attributable to lower revenue from real estate disposals and foreigncurrency effects, the company said.
The increase in profits was primarily due to an increase in new customers and customer depositsat PostFinance, the financial services business. The unit’s operating profit soared 40% to CHF 184million and revenues were 9.3% higher at CHF 607 million.
The core mail business, Post Mail, improved operating profits by 9% to CHF 73 million despite a1.6% revenue decline to CHF 669 million in the first quarter of this year. The Post Office retailbusiness, however, dropped more heavily into the red with a 50% slump to an operating loss of CHF36million and its revenues were 3% lower at CHF 445 million.
Swiss Post International improved its operating profit by 26% to CHF 19 million on revenues ofCHF 220 million, which were up by 7.3%. Swiss Post Solutions moved out of the red with a smalloperating profit of CHF 2 million but its revenues dropped back 14% to CHF 139 million.PostLogistics increased its profit just over 2% to CHF 43 million but its revenues were down by4.8% to CHF 359 million.
Swiss Post did not provide any more detailed information about its business units. It noted thatgroup investments rose slightly to CHF 62 million in the first quarter.
