Bpost plunges after media reports it could loose Belgian newspaper concession

Bpost SA

27/11/2023 09:21

** Shares in Belgian postal operator bpost  BPOST.BR  tumble
around 13% after media reports that the Belgian government could
opt for a competitor in public tender for the newspaper
distribution concession for 2024-28
    ** L'Echo and De Tijd reported on Friday citing sources that
the company had lost the tender and would not see its contract
to distribute daily newspapers renewed
        ** "bpost affirms it has not been informed of any
decision by the Belgian government, which, in turn, stated that
no decision had been made by the Council of Ministers," Bpost
said in a 
    statement
  
    ** KBC's Michiel Declercq estimates that if the rumors were
true, bpost could loose 260 mln euros in revenue at a margin of
up to 7.4%, or the equivalent of 19 mln euros EBIT impact per
year in the long run
    ** Declercq says that the short-term impact could even be
higher, as it will likely come with restructuring costs
    ** Jefferies analysts estimate that the loss of the
concession would likely lead to an expensive restructuring with
costs of about 100 mln euros
   

 (Reporting by Victor Goury-Laffont)
 ((Victor.goury-laffont@tr.com))