Posten Norge posts growth in challenging market

Posten Norge AS increased revenues by 3.4 percent and posted a profit of NOK 472 million in the third quarter of 2015. Logistics revenues increased despite a demanding market.

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Operating revenues in Q3 2015 amounted to NOK 18 451 million, an increase of NOK 599 million (3.4 percent) on the same period in 2014. Operating profit before non-recurring items (EBIT) was NOK 472 million in the third quarter, which is NOK 48 million lower than last year (9.2 percent).

Mail volumes have fallen by 5.5 percent so far this year. The logistics market is directly affected by the downturn in the oil industry and its repercussions for other areas of the market. This has led to profitability challenges in parts of the logistics business. In spite of this, the logistics segment saw sales grow by 3.6 percent in Q3, mainly from Nordic operations.

“We will continue to restructure our operations in line with new user needs and adjust our capacity to market fluctuations. Lower profitability means that we are taking measures to account for this trend,” says Dag Mejdell, CEO of Posten Norge.

Saturday deliveries to be discontinued
The new Postal Services Act comes into force in the New Year and the market will be open to competition. Then there will no longer be an obligation to deliver post six days a week. Posten Norge will discontinue Saturday deliveries of letters on 5 March 2016 to adjust operations and expenses to the sustained decline in letter volumes. Deliveries of newspapers on Saturdays will continue.   

“From March 2016, letters will arrive in mailboxes on Monday instead of Saturday. The opening hours of post offices and in-store postal services will not be affected and people will be able to use our services and pick up parcels as before at over 1400 locations countrywide - on Saturdays as well,” Mejdell emphasises.

Posten Norge had high delivery rates and fulfilled all licensing requirements in the third quarter of 2015. The delivery rate for overnight first class post was 87.3 percent, or 2.3 percentage points above the licensing requirement.   

The increase in online commerce is expected to continue and the group’s overall volume of e-commerce increased by 8 percent on Q3 last year.

More are using Digipost
More and more public organisations have decided to use a secure digital mailbox. Posten Norge’s Digipost had 540 000 users at the end of Q3. By the first quarter of 2016, public organisations will generally communicate digitally with citizens and the number of users is expected to increase rapidly. 

“We chose to be proactive in meeting digitisation and developed Digipost. This allows recipients to collect all important post from public institutions and private senders in one secure digital mailbox,” says Mejdell.

Record low absenteeism
Sick leave was at a record low of 5.6 percent in Q3 2015 - a reduction of 0.2 percentage points from the same period in 2014. Sick leave in the past 12 months was 6.1 percent, down 0.3 percentage points from the same period in 2014.

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