Posten Norge sees profits up across the board

Nordic postal operator Posten Norge has reported profits for both mail and logistics were up in Q1 of 2017.

Posten Norge said that the improvement was in a large part due to the fact that there were more business days in comparison to Q1 of 2015 but also added that it had made ‘significant cost reductions’ in its operations that ‘more than compensated’ for the negative financial impact of fewer addressed deliveries.

Revenue was down from NOK6,199m in Q1 2016 to NOK6,094m, but adjusted profit was up from NOK18m to NOK191m.

In addition Posten Norge’s logistics segment increased its profit (EBITE) in Q1 2017 by NOK73m compared with the same period in 2016.

According to Posten Norge: “This was mainly due to more business days, new sales, cost reductions and the phasing out of unprofitable freight operations in Sweden. High growth in online shopping volume and increased home delivery in Sweden and Denmark also contributed to profitability improvements. The Group’s e-commerce volume was up 15%.”

Posten Norge’s CEO Tone Wille commented: “Even though Q1 showed an improvement in financial results, we still need to increase profitability in the logistics segment. Furthermore, we’re preparing to step up the pace and momentum in our work on digital innovation based on new customer needs. The key focus here is digitalisation of work processes, tools and customer service.

Addressed mail volumes in Norway fell by 7.6% compared to Q1 2016, but when adjusted for number of business days the decline was 12%.

According to Wille: “The mail segment has delivered a good financial result in Q1 despite a significant decrease in volumes. In a digital era where customer needs change quickly, we need to restructure faster and more often. The postal service offering must be adapted to a dramatically changed market situation. This requires political decisions, and that Posten Norge is provided with a predictable framework for granted government procurements of commercially non-viable postal services.”
 
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