Austrian Post revenues flat despite pandemic

Revenue for Austrian Post’s first half (H1) of the year were essentially stable at 0.1% growth to €981.9 million. However the postal operator’s business development was hit by the pandemic.

Commenting on the company’s performance, Austrian Post’s CEO Georg Polzl said: “The first half of 2020 presented major challenges for many companies across the globe, including Austrian Post. The company’s priorities were determined, on the one hand, by the COVID-19 pandemic and related safety and health protection measures, and on the other hand, by the negative economic impacts. In particular, the second quarter of 2020 brought about the most significant disruption of the last ten years due to lockdown and economic standstill in some industries.

“In spite of the considerably more difficult conditions, Austrian Post succeeded in maintaining the nationwide supply of mail, parcel and branch network services thanks to the tireless commitment of all employees, although the fulfilment of delivery obligations wasn’t necessarily profitable and government regulations and crisis measures produced extra costs.

“Upon initial review, our conclusion is that we managed to preserve the safety and health of employees and safeguard the performance capabilities of the company. This entailed considerable costs to ensure staff safety and resulted in extremely high capacity utilisation of the logistics infrastructure to handle the additional parcel volumes of up to 50% per week.”

Polzl said that, despite the COVID-19 backdrop, Austrian Post’s first half-year 2020 revenue “exceeded expectations” and “earnings were in line with current expectations”. The Parcel Division showed a significant increase of 30.0 %, compensating for the decline in the Mail and Retail & Bank divisions.