Post NL has announced its financial results for the second quarter of 2015. It reported revenue of €824m, a slight decline of 0.36% year-on-year. The company also recorded operating income of €77m, a fall of 7.23% compared to Q2 2014. Accordingly the company’s margin stood at 9.34%.
The company’s domestic mail business, Mail in the Netherlands, saw its addressed mail volumes decrease by 11.2% in Q2. The main reason for the volume decline continues to be substitution. Revenue decreased by 4.93% year-on-year as a result of volume decline and lower other revenue, partly offset by a positive price/mix effect.
Cost savings of €12m in Mail in the Netherlands and lower cash out for pensions and provisions €5m were more than offset by the negative volume, price and mix effects in addressed mail, autonomous cost increases and other effects, resulting in an underlying cash operating income for Mail in the Netherlands of €40m, down 16.67% on the prior comparable period of 2014.
In Post NL’s Parcels business unit volume increased by 7.1%. This was largely driven by growth in B2C volumes which followed the trend in the e-commerce market. The company also increased its international volumes, however it stated that it expects limited further growth of international volume in the remainder of 2015.
As a consequence of volume growth revenue grew by 8% to €221m. Increased volume and revenue, together with lower NLI implementation costs, some positive incidentals and the increase in subcontractor costs, resulted in underlying cash operating income of €24m, an increase of 14.29% year-on-year.
Revenue for the International segment increased by 8% to €233m in the quarter. Underlying cash operating income was €5m up from a zero profit result in Q2 2014. Both Germany and Italy contributed to the improvement of the results partly explained by positive incidentals. These numbers are note like for like as they exclude activities in the UK, which are reported as discontinued operations.
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