Posten Norge – operating revenues down 1.8pc

Norwegian postal operator Posten Norge saw a fall in revenues in Q3 of this year but has said it believes that the combination of cost saving measures and investment in new logistics will help boost the group’s longer term prospects.

EBIT for Q3 2016 was MNOK157, which is MNOK2 lower than the same quarter in 2015. Operating revenues were MNOK5934 and are down 1.8% on the same time last year.

“The group is now experiencing a strong steady decline in mail volumes. We have covered much of the decline in revenue with major cost-saving measures in 2016, but we will need to implement further new measures to adapt to developments,” commented Posten Norge’s CEO Tone Wille.

Mail volumes are declining for Posten Norge, but the rate of decline is also increasing. Over the first nine months of 2016 the company saw addressed mail volumes fall by 11.7% in Norway while the annual decline in recent years has been around 7%.

Operating revenue in the mail segment so far this year was MNOK181 lower than in 2015 and EBITE was MNOK87 lower.

However, Wille said that: “Significant cost-saving measures have been implemented to adapt operations to the weaker market. We believe that many of the measures now taken will have a positive effect on the Group’s operating result.  To strengthen competitiveness in the long term, we are making a significant investment in a new logistics network with 18 terminals in Norway.”

One bright spot for Posten Norge has been the continuing increase in e-commerce activity:  the Group’s overall e-commerce volume grew by 13% in the year to date.

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