Pleasing Half-Year Profit For Swiss Post

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In the first half of 2010, Swiss Post generated Group profit of 484 million Swiss francs. That is an increase of 35 percent on the same period last year. Swiss Post posted good results in all four markets. The increase is primarily due to a rise in customer deposits, higher net interest income and the revival of the economy. Ongoing and completed cost reduction programmes in the areas of logistics and letter post also impacted positively on profit. In the same period the headcount increased by 562 full-time equivalents. From today’s standpoint, Swiss Post expects a good full-year result. The Group is continuing its efforts to generate results in line with the industry standard in all four markets.

From January to June 2010, Swiss Post generated Group profit of 484 million francs. That is 126 million francs or 35 percent more than in the same period last year (358 million francs). The increase was primarily attributable to a rise in customer deposits, considerably higher net interest income than in the first six months of the previous year, and the improved economic situation, one result of which was greater volumes of promotional mailings and parcels. Overall, operating income («sales») rose by 105 million to 4,311 million francs (previous year: 4,206 million). At the same time, expenditure fell, mainly due to efficiency gains – from the new letter centres and cost reductions in logistics – as well as currency effects. The Group headcount went up by 562 in comparison with the same period the previous year, to 45,098 full-time equivalents.

Successful in all four markets

All four markets in which Swiss Post is active contributed to the pleasing half-year result. In the communication market an operating result of 79 million francs was generated, mirroring that of the previous year. The decline in addressed letters continued, albeit at a slower pace; the volume of mail was 2.6 percent lower by the middle of the year than it was at the same time a year before. The price cuts introduced on 1 July 2009 and the assumption of VAT also had a negative impact on the figures. However, an increase in unaddressed promotional mailings and the effects of various cost-reduction measures stemmed the fall of the PostMail operating result; it was 109 million francs (previous year: 127 million). At Swiss Post International, the difficult economic environment in some countries affected the result, which was just below that of the year before at 27 million francs (29 million last year). Swiss Post Solutions generated a break-even result, thanks mainly to cost-reduction measures (previous year: minus 10 million francs). Post Offices & Sales improved its result by 10 million francs thanks to cost reductions and increased revenue from non-postal items, generating minus 57 million francs.

In the logistics market the result rose from 15 to 76 million francs. PostLogistics benefited from an increase in parcel volumes (+4.5%), thanks in part to the improved economic situation and electronic trade, as well as to considerable efficiency gains. The retail finance market (PostFinance) made the largest contribution to the Group result, 274 million francs (previous year: 198 million francs). Higher customer deposits and higher net interest were the main drivers of this increase. In the continually expanding market for public passenger transport, PostBus achieved an operating result of 17 million francs (previous year: 24 million francs). The decrease in comparison to the previous year is due to, among other factors, the enhancement of the PostBus offering.

Group result must remain broadly based

From today’s standpoint, Swiss Post expects a good full-year result and to achieve the financial targets it was set by the Federal Council. However, the economic situation and volume trends remain uncertain. In addition to this, too great a dependence on the retail finance market is risky. Swiss Post will therefore continue its efforts to keep costs in check and to safeguard its earnings and make them as broadly based as possible in the four markets in which it is active.