Adjusted profit (EBITE) amounted to NOK 247 million, an improvement of 12 per cent on the same period last year, despite falling mail volumes.

In the second quarter alone, Group earnings declined as a result of fewer business days, as Easter fell in April in 2017.

"The Group is committed to increasing profitability, through operational measures and organisational adjustments. This spring we have made several critical decisions and established a new service organisation that will ensure a clear customer focus. In addition, we are reducing costs in operations and administrative functions. We see that the measures we are implementing are already producing results," says Tone Wille, CEO of Posten Norge.

More logistics and e-commerce

The Logistics segment's revenue was NOK 126 million lower than last year, but the organic growth was positive.

In the Norwegian logistics business, freight, home delivery and consumer e-commerce contributed to growth. Sluggish economic growth in mainland Norway and less activity in the oil sector negatively affected business areas most sensitive to fluctuations in the economy.

This fall, new logistics centres will be completed in Trondheim and Oslo. 

"In the future our new logistics network will consist of 18 joint terminals for parcels and freight in Norway. This means cutting in half the number of terminals we previously had and paves the way for significantly improving efficiency in the logistics operation. These investments will help strengthen Posten Norge and Bring's competitiveness and provide customers with an even better service offering," says Wille.

Logistics operations in Sweden and Denmark showed markedly improved profitability due to strong growth in consumer e-commerce and increased home delivery, as well as the phasing out of unprofitable activities in Sweden.

The increase in consumer e-commerce contributed to a seven-per-cent growth in the Group's e-commerce volume.

Fewer letters

Addressed mail volumes in Norway dropped in the first half of 2017 by 10.4 per cent. The decrease for customers in the banking and finance sector was 28 per cent and for public sector customers 29 per cent.

In the first half year, revenue in the mail segment was reduced by NOK 156 million compared with 2016. The main reasons were the decline in addressed mail volume. 

Highlights first half year 2017 (first half year 2016)

• Revenue: 12 153 MNOK (12 406)
• Adjusted profit (EBITE): 247 MNOK (221)
• Operating profit (EBIT): 257 MNOK (283)
• Cash flow from operating activities: -54 MNOK (161)
• Return on invested capital (ROIC) as at 30 June 2017: 9.1 per cent (8.5)

Highlights Q2 2017 (Q2 2016)

• Revenue: MNOK 6 059 (6 208)
• Adjusted profit (EBITE): MNOK 56 (203)
• Operating profit (EBIT): MNOK 54 (258)
• Cash flow from operating activities: MNOK -181 (84)
• Return on invested capital (ROIC) as at 30 June 2017: 9.1 per cent (8.5)

Source: Posten Norge