Swiss Post reports steady Q3 results

Swiss Post Group reported Q3 profits that were slightly up compared to the same time in 2014, which is down to improving financial services by the Swiss national postal operator. The operating profit was SF503 million for the first three quarters of the year.

The company statement suggested that the SF8 million increase in operating profits were because of, “higher operating profit on the financial services market despite the ongoing low interest rate situation”.

Though some parts of the business were doing well, the mail side has shown decline as every other postal service around the world seems to be facing. However in Switzerland this decline seems to be slowing – the company statement suggested, “the number of addressed letters declined further – albeit at a slower rate”. However with direct mailings shown to have a positive impact for advertisers, non addressed mail saw an increase from last year. The company stated, “The number of addressed letters fell by just 1.0%, while the number of unaddressed items actually rose by 1.2%.”

One of the Group’s main businesses is in logistics, but this has seen intense competition from rival companies in the market, with profits falling SF2 million year on year to SF95 million. This has reduced the overall operating profit for the company. In communications, Swiss Post has also seen a fall in profits, with a fall of SF22 million from last year’s SF188 million.

As with so many national postal operators, the parcel market seems to be gaining strength, with an annual increase of 2.5%. Recently online e-commerce giant Amazon said that Swiss customers would be able to get free delivery from neighbouring countries on orders over €50 and this in turn should impact the national postal operator’s business in the coming year.

Swiss Post’s management are upbeat about the future, saying it, “expects to meet the financial goals of its owner again in 2015.”