Austrian Post: the first half of 2024 proceeded very successfully
The performance of Austrian Post in the first half-year 2024 was characterised by a solid operational business development and several favourable conditions.
This was reflected in the solid revenue and earnings increase. “Against the backdrop of a challenging environment and inflation-related cost increases, the first half of 2024 proceeded very successfully, resulting in an increase in revenue and earnings,” states Georg Pölzl, CEO of Austrian Post. In particular, the major nationwide elections in Austria such as the Chamber of Labour and the European Parliament elections, resulted in higher revenue and earnings for the company in the letter mail and direct mail business. The national parcel market showed a robust development, driven by high volumes from European and Asian e-commerce retailers. The business development in Türkiye was strongly impacted by the high inflation and the currency exchange rate, with a positive impact on half-year performance indicators.
Total Group revenue rose by 17.2 % in the first half of 2024 to EUR 1,505.2m. Revenue increase excluding Türkiye still amounted to 10.3 %. Revenue was up in all divisions in the first six months. Mail Division revenue was up by 3.5 % to EUR 619.0m and is impacted by the structural decline of addressed letter mail volumes as a result of electronic substitution but at the same time positively affected by postal rate adjustments in the previous year as well as by elections in the first half of 2024. Furthermore, a restrained advertising business related to the weak development in certain retail segments was noticeable. The Parcel & Logistics Division generated a revenue improvement of 28.1 % to EUR 804.9m in the reporting period. The parcel business developed very positively in all regions. Strong growth was reported particularly in Türkiye, which was impacted by high inflation and the comparatively favourable exchange rate of the Turkish Lira. Divisional revenue was up by 15.2 % even without including the parcel business in Türkiye. The Retail & Bank Division achieved revenue of EUR 95.7m (+25.0 %) in the first half-year 2024. The customer ramp-up of bank99 as well as the development of interest rates positively contributed to divisional revenue.
In terms of earnings, Austrian Post also generated solid business results in the first half-year. EBITDA increased by 11.9 % to EUR 211.5m and earnings before interest and taxes (EBIT) were up by 10.9 % to EUR 105.6m. Mail Division EBIT was EUR 83.0m in the first half-year of 2024, compared to EUR 77.6m in the prior-year period (+6.9 %). This improvement is related to both the adjustments to the letter mail product and pricing structure effective 1 September 2023 and the elections in the first half of 2024, as well as to price increases for direct mail and media post. The Parcel & Logistics Division’s EBIT amounted to EUR 47.3m compared to EUR 36.3m in the prior-year period (+30.1 %). The parcel business in Türkiye made a significant contribution to the earnings improvement. The Retail & Bank Division’s EBIT was minus EUR 5.3m in the first half of 2024 compared to a positive EUR 1.1m in the previous year. The decline is mainly attributable to special IT expenses related to the core banking system migration project of bank99. The profit for the period of Austrian Post Group totalled EUR 78.5m in the first half of 2024 (–0.2 %), after including the positive valuation effect in the financial result of the previous year. On that basis, earnings per share resulted in EUR 1.12 compared with EUR 1.13 in the first half of 2023 (–1.5 %).
Diverging trends continue to be expected on international mail and parcel markets in upcoming quarters. Weak economic growth in many European countries and the related restrained investment climate impact the purchasing behaviour of companies and private consumers. In turn, this results in a subdued volume development of letter mail and direct mail but simultaneously increasing parcel volumes as a result of the further growth of the online retail business. As was already evident in the first six months of the year, revenue growth in 2024 is being supported by favourable prevailing conditions. In line with current developments – and depending on the exchange rate of the Turkish lira by year end – a revenue increase at least in the upper single-digit range should be possible. Revenue growth on the one hand but also cost discipline and efficiency on the other hand are necessary to ensure the stability targeted by Austrian Post. Austrian Post expects an increase in earnings in 2024. Under the assumption of a continuously stable macro-economic environment in the markets the company operates in, a mid-single-digit EBIT growth is anticipated.
The massive investment programme in recent years, which has almost tripled sorting capacity in Austria, has been completed in the meantime. The investment focus in the coming years will be on expanding international logistics infrastructure and e-mobility. For example, the company aims to achieve CO₂-free last mile delivery in Austria by 2030. “I would like to sincerely thank all employees and customers for their great work and support which have made my 15 years as CEO of Austrian Post so successful and rewarding,” concludes Georg Pölzl.