La Poste reports half-year financial results

La Poste produced operating revenue of €11,905m for the half-year ended 30 June 2017, up 1.1% (0.6% at constant scope and exchange rates). The positive scope effect totalled €105m due to the 2016 and 2017 acquisitions made primarily by GeoPost and, to a lesser extent, by Services-Mail-Parcels, Digital Services and La Banque Postale. Exchange rate movements had a €40m unfavourable impact (for the most part in relation to the British pound).

Revenue for the Services-Mail-Parcels business unit was unchanged at €5,757m, with varying differences among the business units’ activities. The Services-Mail segment reported a small decline in revenue (-0.6%) to €4,927m. The decrease in addressed mail volumes (-6.8%), combined with a mild unfavourable mix/product effect was partially offset by several positive developments, including price increases and postal votes for French legislative and executive elections. Revenue for the Parcels segment (Colissimo) increased by 5.0% to €830m, driven by rising volumes (7.7%).

The Services-Mail-Parcels business unit’s operating profit posted a very slight increase of 0.6% (+0.9% at constant scope and exchange rates) to €507m. The structural decline in mail volumes was offset by the good performance of the parcels segment and of the subsidiaries, among other things.

The GeoPost business unit continued its strong growth with revenue up 9.7% to €3,256m (+8.1% at constant scope and exchange rates). This performance was driven by rising volumes (9.3% with 587m parcels delivered during the period). Price and fuel effects had a revenue impact of 0.7%. All countries saw an increase in organic revenue, including the UK (8.7%), Poland (18.6%), Germany (5.9%), Spain (7.7%) and Russia (15.9%).

GeoPost recorded a 22.1% decline in operating profit (-19.3% at constant scope and exchange rates) to €198m. This change includes, in the first half of 2016, the revaluation of securities in relation to GeoPost’s acquisition of the 50% that it did not already hold in Armadillo (Russia) for €60m. Adjusted for this non-recurring item and at constant scope and exchange rates, GeoPost posted a 6.7% increase in profit due to the combined effect of growing volumes and continued cost control, particularly in France, UK and Poland.

Source: La Poste