Good growth and profit performance for Posten Norge

Both Posten Norge’s revenue and profit increased in Q3 2014. The Group has improved its delivery quality and reputation and its sickness absence rate is continuing to decline.

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As at 30 September 2014, the Group's operating revenues were MNOK 17 852 which is an increase of 4.3 per cent – or MNOK 731 – compared to the same period last year. The operating profit before non-recurring items and write-downs (EBITE) increased by 4.4 per cent to MNOK 520.

The higher profit is due to increased revenues and acquisitions as well as a positive effect from reorganisations and cost-cutting measures.

"The logistics sector is becoming increasingly important to the Group. We can see the results of our efforts to develop an increasingly better service for our customers. In the third quarter, a new terminal for parcels, goods and mail was completed in Molde, Norway, a new terminal was opened in Finland and construction work started on a new logistics centre in Oslo," says Posten Norge CEO Dag Mejdell.

The volume of addressed mail is continuing to fall and efficiency measures are no longer completely compensating for this. Addressed mail declined by 7.1 per cent compared to the same period last year. After the peak year for mail in Norway – 1999 – the number of addressed letters has fallen by approximately 45 per cent.

"Posten Norge has made great changes in order to adapt its operations to new user needs. The reorganisation from post offices to Post in Shops will soon be finished. The next major change will be to drop Saturday as an ordinary mail-distribution day. We're pleased that the Government is suggesting such a solution in the new draft Postal Services Act," says Mejdell.

Mail sent by the public sector has declined by 12 per cent. This trend is expected to strengthen as the public sector starts to use digital mail. Posten Norge’s digital mailbox, Digipost, has been chosen as one of the providers of secure digital mail in the future.

"Physical mail is declining and digitisation has come a long way in Norway. Posten Norge will offer both physical and digital mail in the future," says Mejdell.

As of 30 September 2014, the overnight delivery quality of Posten Norge’s A-mail was 86.6 per cent, which is 1.6 percentage points better than the licence requirement. The other five licence requirements were met by a good margin.

For the second year, Posten Norge improved its ranking in the Ipsos MMI reputation survey. The Group has climbed all of 28 places since 2012 and ended up in 11th position in this year's survey.

The Group's sickness absence rate is continuing to decline. So far in 2014, the sickness absence rate has been 6.4 per cent, a reduction of 0.2 percentage points compared to the same period in 2013. Norway Post was recently awarded the Working Environment Prize 2014 for its good HSE work and for having reduced its sickness absence rate by 30 per cent since 2006.

The number of employees in the Group has been reduced by 1,039 full-time equivalents during the past 12 months. Much of this reduction is due to the reorganisation of post offices into Post in Shops.

 

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