Austrian Post H1 revenue, profit up despite parcels loss

The first half of the 2008 financial year developed satisfactorily for Austrian Post. The 7.3% increase in revenue is not only related to the initial consolidation of the newly-acquired subsidiaries, but also includes organic growth. This development is even more gratifying in the light of the loss of two important mail order customers in the Austrian parcels segment since the beginning of 2008.
The resulting decline in parcels revenue could be more than compensated for. Total Group revenue climbed by 8.8% in the second quarter of 2008.
The Mail Division improved by 8.6% in the first half of 2008, whereas revenue of the Parcel & Logistics was up 7.1% and the Branch Network also registered a gain of 0.2%. Growth in the Mail Division was related to the initial consolidation of the new subsidiaries as well as to an operational increase. Revenue and earnings of Parcel & Logistics were negatively impacted by the loss of two parcels customers, but the newly-acquired subsidiaries could offset the resulting loss of revenue.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was EUR 139.8 mln in the first half of 2008, a rise of 7.4% compared to H1 2007. The EBITDA margin remained unchanged, at 11.7%. In particular, EBITDA in the second quarter of 2008 improved by 22.0%, to EUR 64.4 mln.
The earnings before interest and tax (EBIT) of Austrian Post rose 7.4%, to EUR 32.1 mln. As a consequence, EBIT for the first half of 2008 amounted to EUR 81.9 mln, which was only 3.6% below the comparable period of the preceding year.
Profit for the period of Austrian Post increased by 3.4% in the first half-year, to EUR 70.1 mln (including a rise of 12.4% in Q2 2008).
The average number of full-time employees at Austrian Post increased by 7.5%, or 1,879, compared to H1 2007, to 26,789 people due to the acquisition of subsidiaries.
All in all, Austrian Post expects a slight rise in total revenue for 2008. This includes the integration of the newly-acquired subsidiaries. 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.