Austrian Post revenue up 7.0%, not impacted by financial crisis

The first nine months of the 2008 financial year developed relatively well for Austrian Post. Total revenues increased by 7.0%, which relates to the initial consolidation of the newly-acquired subsidiaries as well as organic growth.
Austrian Post had several challenges to overcome during the first three quarters of 2008: the changing competitive situation in the Austrian parcels market, higher costs due to increasing prices for fuel and transport as well as the integration of new subsidiaries.
Up until now, Austrian Post has been spared the consequences of the current financial crisis with a high equity ratio, and no external borrowing requirements. The investment policy is distinctively conservative, financed by the current operating cash flow. This stability has resulted in a solid share price performance in 2008. Whilst the DJ Euro Stoxx Transportation index has declined by 47.9% since the beginning of the year, the Austrian Post share has only receded in value by 3.7% as at the end of October.
Austrian Post confirmed its outlook for 2008 in terms of a forecast increase in total revenue of about 5%, including the consolidation of the recently acquired subsidiaries. Despite the change in the Austrian parcels business, Austrian Post expects its earnings before interest and tax (EBIT) to match the level achieved in the preceding year while rising in 2009.
Total revenue increased by 7.0% in the first three quarters of 2008 year, to EUR 1,784.6 mln, primarily attributed to the initial consolidation of the new subsidiaries (plus EUR 102.8 mln), as well as organic growth (plus EUR 14.5 mln). Revenues of the Mail division were up 7.7% and the Parcel & Logistics division expanded by 8.2%.
Despite the ongoing trend towards electronic substitution, business in the Letter Mail business area remained virtually constant, whereas the Infomail business area (addressed and unaddressed advertising) and the Media Post business area achieved solid organic growth. Revenue of the Parcel & Logistics division climbed 8.2%, to EUR 575.2 mln, which is due to the growth of the premium parcel segment (parcel delivery within 24 hours) both in Austria and abroad, as well as acquisition-related growth.
Profits for Austrian Post for the period amounted to EUR 87.5 mln.