PostNL's loss widens amid stand-off over Dutch mail delivery obligation (updated)
03/11/2025 07:33
Adds context and CEO comment on Dutch mail operations in paragraphs 1-2, 4-6, outlook in paragraph 7 By Olivier Cherfan Nov 3 (Reuters) - Dutch postal group PostNL PTNL.AS reported a wider than expected quarterly operating loss on Monday, flagging growing pressures in its domestic mail operations as volumes dwindle and most revenues concentrate on a small number of big customers. The company is in a stand-off with the Dutch government over the cost of nationwide letter delivery as the number of letters and parcels being sent declines. Its request for temporary support from the government and the subsequent appeal have been rejected. PostNL's normalised loss before interest and taxes widened to 21 million euros ($24.5 million) in the third quarter, from a loss of 18 million euros a year earlier. Analysts polled by the company were expecting a loss of 17 million euros on average. Minister of Economic Affairs Vincent Karremans said in October that PostNL would be allowed to extend personal mail delivery times in the Netherlands to three days from 2027, advancing a plan previously slated for 2028 or 2029. The two-day delivery scheme announced in June is set to start in July 2026. However, PostNL CEO Pim Berendsen said the proposal was insufficient to cover the costs of fulfilling the EU-mandated universal postal service in the country, repeating his call for an urgent change in the Dutch postal regulation. The company had asked to be released from the nationwide delivery obligation in early September after its latest bid for state aid was rejected. PostNL expects a decision on its funding appeal for 2025 and 2026 and Karremans' response to its withdrawal request soon, Berendsen said in the earnings statement. The group reiterated that it expects its annual normalised operating result to be in line with last year, when it reported a profit of 53 million euros. ($1 = 0.8575 euros) (Reporting by Olivier Cherfan in Gdansk, editing by Milla Nissi-Prussak) ((olivier.Cherfan@thomsonreuters.com;))