PostNL cuts 2024 profit forecast again, citing 'unsustainable' business model
20/01/2025 08:06
Jan 20 (Reuters) - Dutch postal operator PostNL
PTNL.AS cut its 2024 operating profit forecast for the second
time on Monday, with its top executive citing less seasonal mail
than expected in December and an "unsustainable" business model.
The Amsterdam-listed stock fell 3.2% in early trading.
Slow to expand their parcel networks and at times in
financial trouble, traditional postal services in Europe are
struggling to keep up with competition from other parcel locker
firms such as Poland's InPost INPST.AS and Amazon AMZN.O .
"Urgent action to adjust the USO obligations (universal
service obligations) as well as a financial contribution from
government are inevitable to safeguard a future-proof and
financially viable postal service," PostNL CEO Herna Verhagen
said in a statement.
One of the few European incumbent mail operators without any
state participation, PostNL now estimates its normalised
earnings before interest and taxes (EBIT) at around 53 million
euros ($54.64 million) for 2024.
The company, which delivers parcels and letters across
Belgium, the Netherlands and Luxembourg, had in November said it
expected normalised EBIT of around 80 million euros, at the
bottom of its previously given outlook range.
"4Q24 results disappointed due to an acceleration of
existing trends, with the key driver for the outlook miss being
the higher-than-expected client concentration at parcels in
4Q24," KBC analysts said in a note to clients.
PostNL also forecast free cash flow of about 12 million
euros, up from the previously expected break-even, citing
well-executed cash and balance sheet management.
($1 = 0.9700 euros)
(Reporting by Gianluca Lo Nostro and Alessandro Parodi; Editing
by Milla Nissi)
((Gianluca.lonostro@thomsonreuters.com;
Alessandro.Parodi@thomsonreuters.com))