A good start to 2012
Norway Post has had a good start to 2012. The first quarter results show higher revenues and earnings.
The first quarter earnings before non-recurring items and write-downs came to NOK 271 million – 15.9 per cent higher than that reported for the same period last year. The increase is due to extensive efficiency improvement measures in the mail segment.
“I’m very pleased with the quarterly results. They show that we deliver both high quality and satisfactory financial results despite market challenges,” says Norway Post CEO Dag Mejdell.
The volume of addressed mail fell by 4.2 per cent during the first quarter and the decline was greatest for A-mail. The Group’s revenues nonetheless rose due to volume growth in the logistics segment and the acquisition of new companies. The first quarter operating revenue amounted to NOK 5,802 million, an increase of 1.4 per cent compared to the first quarter 2011.
The Group’s efficiency programme, Spinnaker, which started in 2008, has produced an accumulated effect of just over NOK 2.5 billion so far.
Last year, Norway Post launched a digital mailbox, Digipost, in order to participate in the changeover from physical to digital mail. More than 200,000 people have registered as users and around 50 companies have contracted to send mail using the digital mailbox. At the same time, the Norwegian government is considering whether the public sector should develop its own digital mailbox when all public mail is to be transferred from physical mailboxes to a digital mailbox.
“We know that people like things to be simple and to gather all their mail in one mailbox – both on the garden fence and online. Norway Post is striving to ensure that the public sector chooses Digipost to send digital mail in the future in the same way as Norway Post has sent physical mail for 365 years,” says Mr Mejdell.
In the White Paper on Norway Post which is to be discussed by parliament before the summer, the government states that Norway Post has succeeded in implementing major reorganisation measures over time and allows for the possibility that Norway Post can continue to reorganise and develop the Group.
“It’s gratifying that the Government recognises the changes Norway Post has implemented and also supports us in continuing to reorganise and develop the Group,” says Mr Mejdell.
Norway Post acquired Fredrikstad Transport & Spedisjon in April. This acquisition is part of the Group’s efforts to strengthen its positions in cross-border transport to and from Norway.
“Norway Post’s strategy is to strengthen and develop its mail operations with services that are adapted to new customer needs. New companies outside the traditional mail sector are intended to help improve the Group’s range of services and market positions and, over time, make a positive contribution to the results,” says Mr Mejdell.
Norway Post wants to be able to utilise attractive opportunities in the market when they arise. At the same time, it stipulates that individual Group companies must contribute to Group synergies and be independently profitable over time.