PostNL reports solid Q3 2014 results

The Hague
Full press release

Financial highlights Q3 2014

  • Revenue increased to €988 million (Q3 2013: €969 million)
  • Underlying cash operating income increased to €34 million (Q3 2013: €17 million)
  • Tax payment of €65 million related to prior years (Q3 2013: €73 million refund) impacted net cash from operating and investing activities

Operational highlights Q3 2014

  • Addressed mail volume Mail in the Netherlands declined by 11.1%
  • High delivery quality at 97.1%
  • Smooth execution of restructuring plans resulted in cost savings of €25 million
  • Parcels volume grew by 8.1% driven by strong e-commerce market
  • New stamp rates 2015 announced

Outlook 2014*

PostNL remains on track for full year underlying cash operating income of between €260 million and €290 million
* Increased outlook 2014 was provided on 7 July 2014 and is excluding the result from the activities in the United Kingdom

CEO statement

Herna Verhagen, CEO of PostNL: “This quarter demonstrated the ongoing improvement in PostNL's operational performance. Our results improved mainly due to strong cost savings, price increases in Mail in the Netherlands and lower cash out for pensions and restructuring. Our addressed mail volumes in Mail in the Netherlands declined by 11.1%. Reduction of our cost level remains necessary to compensate for the ongoing volume decline in Mail in the Netherlands.

Parcels saw healthy growth of volumes and revenue. Further improved operational efficiencies were offset by higher subcontractor costs and initial costs for the expansion of our service offering, with innovations like the upcoming roll-out of nine parcel lockers. International showed revenue growth, but our results were impacted by the competitive environment in Germany; we are taking further measures to improve profitability.

Based on what we achieved this year so far and taking into account the usually strong fourth quarter, I remain confident that we are well on track to deliver our full year 2014 outlook of underlying cash operating income of between €260 million and €290 million.”