PostNL confirms guidance after posting surprise operating profit for Q2 (updated)
04/08/2025 06:37
PostNL launches appeal on Dutch subsidy decision Seeks prepayment of 30 million euros for 2025 Hopes to get court decision in September, CEO says No interim dividend, but full-year payout planned Adds company expectations for appeal timeline in paragraphs 2, 5 By Olivier Cherfan Aug 4 (Reuters) - PostNL PTNL.AS launched an appeal on Monday against the Dutch government's decision to reject the postal operator's request for financial aid, asking for a $35 million prepayment to help it provide public postal services this year. PostNL said it had filed for preliminary legal proceedings, hoping to get a day in court in August, as it faces mounting pressure to ensure the financial sustainability of those service obligations. "According to European legislation, a provider of a public service is entitled to compensation if the obligations impose a disproportionate financial burden," CEO Pim Berendsen said in an earnings statement. PostNL had previously asked the state for a temporary financial contribution to cover costs of 30 million euros ($34.7 million) in 2025 and 38 million in 2026. It confirmed on Monday it was still seeking those numbers. Berendsen told analysts the company was hoping to get a court decision during September, though the final timeline depended on the courts. PostNL also flagged a 40 million euro goodwill impairment on its Dutch mail business due to the government's decision. The services it is required to provide by law are projected to remain loss-making until at least 2029. "The market believes (PostNL) might have a strong case and thus a more than 50/50 outcome yes or no seems to be priced in," ING analyst Marc Zwartsenburg told Reuters. The shares were up 6% by 1109 GMT. PostNL said it would not distribute an interim dividend because of the uncertain situation, but it still intends to pay one for the financial year. It reiterated that it expects annual normalised operating profit to be in line with last year's, after it achieved planned cost savings for both Parcels and Dutch mail divisions and posted a surprise operating profit for the second quarter. The impairment announced on Monday does not affect the normalised result. ($1 = 0.8652 euros) (Reporting by Olivier Cherfan in Gdansk; editing by Milla Nissi-Prussak) ((olivier.cherfan@thomsonreuters.com))