Scandinavian postal operator PostNord has published an interim report into its performance. The company stated that its performance data suggested that the operator is still on the right track but even with internal reforms, conditions are even more challenging than they were.

The postal operator, which runs Sweden’s and Denmark’s national postal operations, has seen a sharp decline in traditional mail, with a greater decline in Denmark than in Sweden. Mail volumes fell by 23% in Denmark where in Sweden they fell by 7%, with an overall average fall of 11% in both countries this quarter. Over the year volumes have fallen by 9% in both countries with the Danish share falling by 18%.

In order to survive as a universal postal operator both countries, PostNord has to successfully apply its internal reforms as quickly as possible, according to the interim report.

Sweden’s government has instituted an internal inquiry as to how to successfully enact the reforms. Once more, the government is to review its postal legislation to see what else can be done to help the Scandinavian postal operator to survive. This should be done by May 31, 2016.

In Denmark, customers have switched to non-priority mail in large numbers and the postal operator has increased the costs of priority mail in order to pay for what is now in effect an express delivery service in the country along the lines of DHL or TNT.

The interim report suggested that the postal operator needs to further adapt its delivery processes and redeploy its workforce in order to more properly reflect the demands of its customers, who are increasingly turning to digital communications instead of the traditional mail services. As with postal operators around the world, it will have to adapt much further to survive the ever greater threats and opportunities of the digital world.