Data privacy fine to hit Austrian Post's 2019 profit

Oesterreichische Post AG

29/10/2019 14:02

VIENNA, Oct 29 (Reuters) - Austrian Post  POST.VI  said on
Tuesday a 18 million euros ($20 million) fine for illegally
using marketing data would weigh on its 2019 profit.
    The company, which is majority state owned, used customers'
data, such as ages and addresses, to calculate a probability of
which political party they might support and sold its findings.
    That violated data privacy rules, Austria's data protection
authority said in a separate statement, leading it to impose the
fine. 
    Austrian Post said it planned to appeal the decision.
    The group reiterated it expects operating earnings -
excluding a provision for the fine - to remain at last year's
level. 2018 earnings before interest and tax (EBIT) were at 211
million euros. 
    It also said it expected business to remain stable in 2020. 
    The company said it planned to offer new banking services
under a new brand from the second quarter of 2020 after lender
BAWAG  BAWG.VI  exits a partnership by the end of this year. 
    Total investments for setting up the new business will
amount to 40 million euros in 2020 and 2021, Austrian Post said.
It expects the new unit to contribute to earnings from 2023.
    ($1 = 0.9024 euros)

 (Reporting by Kirsti Knolle; Editing by Mark Potter)
 ((kirsti.knolle@thomsonreuters.com; +43 1 53 11 22 55;))