Austrian Post Reports Revenue and Earnings Growth

The business performance of Austrian Post in the first half of 2024 was characterized by solid operational development and some positive framework conditions. This was reflected in the pleasing increase in both revenue and earnings. The national parcel market showed strong development, driven by high volumes from European and Asian e-commerce merchants.

(Wien) “Given the challenging market environment and inflation-related cost increases, the first half of 2024 was very successful with an increase in revenue and earnings,” says Georg Pölzl, CEO of Austrian Post. In particular, the major nationwide elections in Austria, such as the Chamber of Labor election and the European election, provided the company with a revenue and earnings boost in the mail and advertising business. The national parcel market also showed strong development, driven by high volumes from European and Asian e-commerce merchants. In Turkey, business development is heavily influenced by high inflation and the exchange rate – with positive effects on the half-year figures.

The revenue of the postal group increased by 17.2% in the first half of 2024 to EUR 1,505.2 million. Even excluding revenue from Turkey, the revenue increase was 10.3%. All divisions recorded an increase in the first six months: The revenue of the Mail & Advertising division rose by 3.5% to EUR 619.0 million and is characterized by the structural decline in addressed mail volume due to electronic substitution, but also positively influenced by last year’s tariff adjustments and the elections in the first half of 2024. Furthermore, a subdued advertising business can be observed, due to weak development in certain trade segments. The Parcel & Logistics division generated an increase in revenue of 28.1% to EUR 804.9 million during the reporting period. The parcel business developed very positively in all regions. Particularly in Turkey, a strong revenue growth was recorded, influenced by high inflation and the comparatively favorable exchange rate of the Turkish lira. Even excluding the parcel business in Turkey, revenue increased by 15.2%. The Branch & Bank division achieved revenue of EUR 95.7 million in the first half of 2024 (+25.0%). The ramp-up of customers at bank99 and the development of the interest rate landscape in recent months contributed positively to the division’s revenue.

Price Adjustments and Elections Drive Increase in Mail

Austrian Post also recorded an improved first half in terms of earnings. EBITDA increased by 11.9% to EUR 211.5 million, and earnings before interest and taxes (EBIT) rose by 10.9% to EUR 105.6 million. The Mail & Advertising division generated EBIT of EUR 83.0 million in the first half of 2024, up from EUR 77.6 million the previous year (+6.9%). This increase is attributed to adjustments in the product and price structure of mail effective September 1, 2023, as well as the elections in the first half of 2024, but also to price increases in advertising and media mail. In the Parcel & Logistics division, EBIT of EUR 47.3 million was achieved in the first half of 2024, compared to EUR 36.3 million (+30.1%) the previous year. The parcel business in Turkey significantly contributed to the increase in earnings. The Branch & Bank division recorded EBIT of minus EUR 5.3 million in the first half of 2024, down from plus EUR 1.1 million the previous year. The decline is mainly due to IT special expenses related to the migration of the core banking systems of bank99. The net income for the first half of 2024 was EUR 78.5 million (–0.2%), after a positive valuation effect in the financial result was included in the previous year. This results in earnings per share of EUR 1.12 compared to EUR 1.13 in the previous year (–1.5%).

Revenue Growth Favored by Positive Framework Conditions

For the coming quarters, diverging trends are expected in the international mail and parcel markets. Weak economic growth in many European countries and the associated cautious investment climate influence the purchasing behavior of companies and private consumers. This results in a reduced volume development in mail and advertising shipments while simultaneously increasing parcel volumes due to the continuing growth of online commerce. As already evident in the first six months of the year, revenue growth in 2024 will be favored by positive framework conditions. According to current developments, depending on the exchange rate of the Turkish lira at the end of the year, a revenue increase of at least in the upper single-digit range should be possible. Revenue growth on one hand, but also cost discipline and efficiency on the other hand, are necessary to ensure the targeted stability of Austrian Post. Austrian Post expects an increase in earnings for 2024. In a persistently stable macroeconomic environment in the company’s markets, an EBIT improvement in the mid-single-digit range is to be expected.

Massive Investment Program Completed

The massive investment program of recent years – in Austria, sorting capacity has nearly tripled – has now been completed. The focus of investments in the coming years will be the expansion of international logistics infrastructure and e-mobility. By 2030, for example, CO2-free delivery on the last mile in Austria is to be implemented. “I would like to sincerely thank all employees and customers for the great work and support that have made my 15 years as CEO of Austrian Post so successful and enriching,” concludes Georg Pölzl.

Photo: © Austrian Post