Posten Norge generated NOK 23 894 million in revenue in 2018, the company has announced.
Adjusted operating profit amounted to NOK 531 million, representing a decrease of NOK 172 million from 2017.
The decrease in revenue (-3.2 %) was mainly due to the selling of subsidiaries and the decline in mail volumes. The financial results are impacted by the increasing decline in addressed mail volumes, which reached 12.9% in 2018.
Commenting on the figures, CEO of Posten Norge Tone Wille, said: “We have had a lot to celebrate in 2018. Our customers have become more satisfied and the logistics market is growing. Previous customers have returned and we have won new ones. At the same time, this is a demanding market with tough competition and low margins. The mail segment is declining sharply as a result of digitalisation.”
In 2018, adjusted operating profit for the mail segment was NOK 657 million, representing a reduction of NOK 186 million compared with 2017. The mail segment is characterised by a dramatic decline in mail volumes and reduced profit, despite significant cost measures. The state’s procurement of universal service obligations that are commercially unprofitable amounted to NOK 536 million. This was NOK 193 million higher than the previous year and was mainly due to the additional cost of maintaining five-day postal distribution throughout the country.
“It has never been more important for Posten Norge to restructure its postal operations. The mail segment is characterised by a dramatic decline in mail volumes and reduced profit. The volume decline is increasing month by month. We must continue to restructure and develop our services. A transition to fewer fixed postal delivery days requires a political decision. “ says CEO Tone Wille.
The logistics segment increased its revenue by NOK 787 million in 2018. Adjusted operating profit was NOK 135 million, NOK 6 million higher than in 2017, showing a positive trend over the past six months. Organic growth was 5.9%. E-commerce for consumers, including home delivery services, showed good growth both in and outside Norway.
“An important success factor in the future is to succeed in e-commerce with industrial production and individual delivery. The logistics network in Norway is the engine of the Norwegian logistics business. When the remaining four terminals are completed in 2020, we will realise the full effect of new production processes and transport management systems, and can exploit the economies of scale,” said Wille.