Post Danmark achieved a net profit of DKK 355 Million in the first half of 2007

(27.08.2007) - Post Danmark achieved a net profit of DKK 355 million in the first half of 2007 againstDKK 665 million in the same period the year before. The operating profit amounted to DKK 436 million against DKK 741 million the year before, corresponding to a decline of 41 per cent. "BvDP"



The profit performance was clearly marked by stagnant revenue. One major cause to this situation was the implementation of changes from the beginning of this year in relation to the subsidy for the distribution of dailies etc. as a result of which it is now paid directly to the media.

A range of publishers have therefore decided to develop their own distribution network or to choose other distributors. In addition, revenue dropped for letters, magazine mail and unaddressed mail, says Helge Israelsen, CEO, Post Danmark.

Further to this development, growth was seen in expenses. The addition of Transportgruppen and the new collective agreements in spring led to higher payroll costs than expected. In addition, the profit was affected by strong growth in transport costs.

The profit moreover decreased as a result of the implementation as planned by the associate De Post – La Poste of a three-yearly voluntary early retirement programme where relating expenses were charged to the income statement in the first half-year. The resulting effect was just over DKK 130 million for Post Danmark. This non-recurring cost will be offset by future savings on wages, salaries etc. for De Post – La Poste. Post Danmark is pursuing a number of initiatives in relation to production, transport structure and distribution which must lead to a substantial improvement of the economy in the coming years.

Parcels accounted for a positive development in the first half-year with handsome growth in revenue and volume. In addition, properties were sold in connection with restructuring and relocation, and a net profit of DKK 61 million was realised on sales of property in the first half-year, explains Helge Israelsen.

We expect the overall profit for the full year to be significantly lower than in 2006. This was already clear after the financial statements for the first quarter, and these expectations remain unchanged in connection with the interim financial statements, says Helge Israelsen.