Norway Post has reported a good performance for the first six months of 2015 with turnover growing by 3% despite a continued decline in letter volumes. The growth has been attributed to the rise in parcel volumes as a result of increased online shopping activity.
Operating revenues in the first half of 2015 were Nkr12.4bn (US$1.5bn), an increase of 3%, or Nkr364m (US$43.9m), when compared to the same period in 2014. Operating profit before non-recurring items (EBIT) in the first half of the year amounted to Nkr314m (US$37.9m), which is Nkr2m (US$241,230) higher than at the same time last year. Developments in the mail segment were affected by the continued fall in letter volumes. Mail sent by the public sector accounted for the greatest decline in addressed mail (-9%) as a result of the transition to digital solutions. The logistics segment is influenced by the reduced activity in the oil industry, but managed to achieve a growth in operating revenues of 5.5%.
Dag Mejdell, CEO of Norway Post, said, “The postal and logistics industry is faced with significant challenges. Mail volumes declined as expected by about 6%, while cyclical fluctuations in the oil industry affect the entire economy. However, we have delivered a performance in line with last year, which I’m very pleased about.”
On June 9, the Norwegian parliament adopted a new Postal Services Act. One important change is that Norway Post’s remaining monopoly on letters under 50g has been terminated. Further more, Norway Post will no longer be required to distribute mail six days a week. The company will continue to restructure operations to meet new user needs and increased competition.
“Our biggest challenge is digitization, but full competition for postal services will further tighten the requirements,” added Mejdell. “I’m confident that Norway Post will succeed against the competition. We provide world-class postal services, we cover every household and company across the country, and we have 18,000 skilled employees.”
September 2, 2015
