Parcels grow but mail down at Austrian Post

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Group revenue at Austrian Post increased 3.2% to €2bn (US$2.2bn) in 2019 with strong parcel growth offsetting declines in the mail division.

Revenue for the Parcel & Logistics Division increased 15.9% in Austria and by 8.7% in the southeast and eastern European subsidiaries.

The national and international parcel market growth was driven by the expansion of online shopping and is impacted by ongoing competition and price pressure.

Georg Poelzl, CEO of Austrian Post, said, “The partnership between Austrian Post and Deutsche Post DHL Group in Austria launched on August 1, 2019, has started off very well. From a logistics perspective, Austrian Post has effectively managed the major challenge of coping with increased daily delivery and transport volumes since then.”

Mail & Branch Network Division revenue declined by 0.8% as letters continue to face competition from electronic communications.

Letter mail was subject to a structural decline, and Austrian Post said it was negatively affected by General Data Protection Regulation uncertainty.

The new product and postage rate model, and special mailing and elections, had a positive impact on the division.

Austrian Post said earnings were good in 2019, with EBITDA (earnings before interest, tax, depreciation and amortization) improved 4.3% to €319m (US$355m).

Reported EBIT was down 4.9% to €200.6m (US$222m) due to one-off effects such as special provisions for data protection.

Sorting capacity was increased in 2019, with the Parcel Logistics Centre Lower Austria in Hagenbrunn being launched.

Capacity will continue to grow in 2020 with the launch of the Parcel Logistics Centre Styria in Kalsdorf and the Thalgau/Salzburg Delivery Base.

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