Austrian Post has published its financial results for the first six months of this year, achieving 17.2% year-on-year revenue growth to €1.5bn (US$1.6bn), a 28.1% rise in parcel and logistics revenues to €804.9m (US$878.2m) and an increase of 3.5% in mail and direct mail revenues to €619m (US$675m).
The growth in the mail division was characterized by the structural decline in addressed letter mail volumes due to electronic substitution, but also positively influenced by the rate adjustments of the previous year as well as the elections in the first half of 2024.
Meanwhile, the parcel business developed very positively in all regions with particularly strong revenue growth in Turkey due to high inflation and the comparatively favorable exchange rate of the Turkish lira.
Successful first half
“In view of the challenging market environment and inflation-related cost increases, the first half of 2024 was very successful with an increase in revenue and earnings,” explained Georg Pölzl, CEO of Austrian Post. “In particular, the major nationwide elections in Austria such as the Chamber of Labor elections and the European elections, brought the company an increase in revenue and earnings in the letter mail and direct mail business.
“The national parcel market also recorded strong development, driven by high volumes from European and Asian e-commerce retailers. In Turkey, business development is strongly influenced by high inflation and the exchange rate – with positive effects on the half-year figures.”
Austrian Post expects diverging trends to continue on the international mail and parcel markets in the coming quarters, with weak economic growth in many European countries and the associated cautious investment climate influencing the purchasing behavior of companies and private consumers. This is resulting in a reduced volume trend for letter and direct mail items and, at the same time, rising parcel volumes due to the continued growth in online retail.
Continued investment
Austrian Post has now completed a massive investment program to triple its sorting capacity across the country, and further investments in the coming years will focus on expanding the international logistics infrastructure and e-mobility. For example, the aim is to implement CO2-free delivery over the last mile in Austria by 2030.
“I would like to 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,” concluded Pölzl.