I Wonder Why RM Put This Story on MYROYALMAIL.COM

[TrueBlueTerrier]

https://www.myroyalmail.com/news/nation ... cels-boost" onclick="window.open(this.href);return false;

Overall domestic mail volumes are down, but Deutsche Post’s parcels and international express businesses buoy first quarter results

Parcels growth has helped Deutsche Post DHL boost its first quarter revenues, despite fewer working days and the tough global economy.

The company posted first quarter revenue of EUR13.4bn, an increase of 0.6%. It also increased its operating profit by 2.9% to EUR711m.

Revenue gains from the German parcel business and the international express business were key growth drivers. The company’s domestic parcels business grew volume by 6.4% and revenue by 7%.

Profit improvements

In the DHL express division, daily volumes increased by over 9.5%, while revenue was up by 0.6% to EUR 3.03bn. Investment in operational improvements is now translating into profit improvements, with reported EBIT up 9.5% to EUR 254m.

In the mail division, the company’s overall domestic volumes declined by 3.4%. This was due to the discontinuation of a high-volume discounted mail service (“Infobrief”) and customers reducing their advertising spend on mail.

Analysts reacted favourably to the DP DHL results, with shares rising to a 5-year high on the day of the announcement.