Austrian Post forecasts stable 2019 earnings as parcels business grows

Oesterreichische Post AG

16/05/2019 09:15

VIENNA, May 16 (Reuters) - Austrian Post's  POST.VI 
operating earnings and revenue will hold steady this year, the
company said on Thursday, as speedy growth in its parcel
business offsets falling revenue at its much bigger mail and
branch division.
    The group, whose mail and branch arm delivering direct mail
like letters and advertising literature accounts for some 70% of
revenues, said earnings before interest and tax (EBIT) grew 1.3%
to 57.4 million euros ($64.3 million) in the first quarter. 
    Revenue edged up 0.4% to 492.5 million euros in the same
period.
    Austrian Post delivered more letters in the period as
insurance and service companies normally send their annual
statements at the beginning of the year, but fewer newspapers
and less advertising mail, a spokesman said. 
    While the mail and branch division saw a revenue decline of
1.4 percent, the parcel business grew 6.7 percent thanks to 
Austrian shoppers' ever-increasing appetite to buy online. 
    Although Amazon  AMZN.O  has established its own delivery
services in the Alpine country, Austrian Post forecasts further
strong growth in its parcels business, helped by an agreement it
struck with Deutsche Post  DPWGn.DE  in March.  urn:newsml:reuters.com:*:nL8N20Z1X7
    The group is expanding its parcel logistics and aims to
double transport and sorting capacities in the medium term.
    Austrian Post said regulatory checks had been initiated with
the European Central Bank (ECB) regarding its planned
acquisition of an 80% stake in Bruell Kallmus Bank AG, part of
Grawe Banking Group.  urn:newsml:reuters.com:*:nFWN21Q0LW    
    The company is planning a capital increase to finance the
buy and hopes to start offering new financial services in its
branches in the course of next year. 
    It had proved difficult for the mailing group to find a new
partner after BAWAG Group  BAWG.VI  decided last year to end its
agreement to offer bank services at Austrian Post branches at
the end of 2019.

($1 = 0.8924 euros)

 (Reporting by Kirsti Knolle; Editing by Jan Harvey)
 ((kirsti.knolle@thomsonreuters.com; +43 1 53112 255; Reuters
Messaging: kirsti.knolle.thomsonreuters.com@reuters.net    
www.reuters.com))