The business of Austrian Post proceeded favourably in 2007. Total revenue increased by 33.3% to EUR 2,315.7 mln. A major contribution to the growth in revenues (about EUR 500 mln) was the initial consolidation of trans-o-flex (Parcel & Logistics Division), acquired at the end of 2006.
On balance, revenues from the Mail Division were up 5.3%, and the Parcel & Logistics Division improved by 225.3%. In contrast, the Branch Network Division posted a decline in revenues of 1.2%.
With the acquisition of ten companies, Austrian Post continued its international expansion, establishing a foothold in new markets or new niche segments. In the meantime, 27% of Austrian Post’s total revenue is generated abroad, compared to less than 3% in 2006. Austrian Post invested a total of EUR 72 mln in 2007 for these acquisitions.
The cash flow from investing activities was minus EUR 142.4mln, encompassing the purchase of property, plant and equipment amounting to EUR 96.8 mln, the acquisition of new subsidiaries totalling EUR 71.9 mln (Weber Escal, Scanpoint, meiller, ST Media, Scherubl, Road Parcel, Merland Expressz, DDS, VOP, City Express) as well as the purchase of a 5% stake in the consortium acquiring BAWAG PSK.
The average number of full-time employees at Austrian Post rose by 5.3% compared to the previous year, to the current level of 25,764. This increase is related to the acquisition of new subsidiaries and shareholdings.
All in all, Austrian Post expects a stable development to a slight increase (up to 3%) in its total revenue for the year 2008. This includes the integration of the new subsidiaries acquired in 2007. This forecast is based on the assumption of a largely stable development in letter mail and direct mail volumes, an increase in Austrian Post’s international parcels business as well as a lower volume in the company’s Austrian parcels business due to the loss of major mail order customers. Customer losses in the parcels segment are being counteracted by a repositioning and corresponding restructuring of the Parcel & Logistics Division in
Despite these adverse effects on parcels business, the company anticipates that earnings before interest and tax (EBIT) in 2008 will only be slightly below the level achieved in the year 2007, and will then rise in subsequent years.
