Good first-quarter results for Norway Post
Norway Post has produced good first-quarter results. The logistics segment's revenue has grown and the Group's cost-cutting measures have had a positive effect.
The operating revenues came to NOK 6,288 million in Q1 2015, which is 3.6 per cent more than in Q1 2014. The earnings before non-recurring items and write-downs were NOK 231 million, a 20.9 per cent increase on the same period last year. In addition, the sale of Norway Post's stake in Evry ASA was completed in Q1 and produced a gain of NOK 219 million.
Both the mail and logistics segments have contributed to these improved results. The logistics segment is expanding strongly in both Norway and the Nordic region. The mail segment improved on its 2014 results despite the continued decline in the volume of addressed and unaddressed mail.
"This shows that Norway Post has made the right moves and restructured in time. Norway Post needs new framework conditions to be able to continue its restructuring work and adapt to new user needs in the future too. So we're looking forward to parliament dealing with the new Postal Act Bill before the summer," says Norway Post CEO Dag Mejdell.
E-commerce is increasing, while mail volumes continue to decline
The mail segment achieved earnings before non-recurring items and write-downs of NOK 325 million in Q1 2015, NOK 55 million more than in the corresponding period in 2014. This increase is due to the transition to Post in Shops and lower IT costs. The volume of addressed letters has fallen by 6.2 per cent over the past 12 months.
The logistics segment's earnings before non-recurring items and write-downs in Q1 2015 came to NOK 51 million, NOK 10 million more than in Q1 2014. This is a result of the increase in volume, growth in revenue and positive effect of cost cuts. Online shopping is continuing to grow and the Group's total e-commerce volume increased by 5 per cent in Q1.
"Norway Post is one of the Nordic region's leading e-commerce players. We see that our customers value a high-quality logistics partner with good solutions. As one of the world's most innovative mail and logistics companies, we will continue to help develop e-commerce for both online shops and consumers," says Mejdell.
A gradual transition to digital mail
In April, Norway Post's digital mailbox, Digipost, reached a milestone of more than 500,000 users and this number is expected to increase as more and more public-sector departments start to use this solution. The general rule is that the public sector must communicate digitally with the general population by the end of Q1 2016.
"In our experience, most of the population now know about Digipost and the opportunities that a safe digital mailbox entails. Many people prefer to gather their important documents - from the health authorities, local authority or Labour and Welfare Service - in a digital mailbox. Now this is at last possible using a safe and easy-to-use solution," says Mejdell.
Digipost is as safe as using an online bank and is free for the general population.
For further information, please contact:
John Eckhoff, Chief Press Officer
+47 913 97 071