German business continues to be part of PostNL

The Hague, 14 April 2016 – Following the strategic review of the international activities of PostNL, that was announced in May 2015, PostNL has decided to continue to invest in its German operations (Postcon). This decision is based on the improved performance of the business. Postcon has growth potential in the German mail market. In order to fully realise the growth potential, PostNL has decided to sell the last mile operations in Frankfurt and buy out the minority shareholder of Postcon National. Both transactions are subject to the approval from the relevant authorities.

PostNL supports local management and expects that it will be able to improve Postcon’s profitability by growing its market share through expanding its customer base, improve pricing and implement further cost reductions. PostNL expects Postcon to be break-even in 2016 and to contribute to its cash profitability in the years thereafter. 

This decision will not impact the 2016 outlook for PostNL’s underlying cash operating income. The ambition for 2020 will be adjusted to between €285 million - €355 million, compared to €265 million - €335 million excluding the German activities. 

Strategic review international activities 

In May 2015 PostNL announced a strategic review of the international activities. The strategic review of the activities in the United Kingdom resulted at the end of July in an agreement on the main conditions of a management buy out of Whistl, that was completed on 23rd October 2015. On 2 October 2015, we announced the decision to continue to invest in the development of our Italian operations. 

Postcon key facts

€494 million turnover, 1 billion letters, 2,700 employees – 2,100 FTE
More than 20 million households, >4,000 clients, 118 locations