In This Article:
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Revenue Growth: 13.6% increase over the first nine months.
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Mail Segment Revenue Growth: 5.1% increase, supported by price increases and election year.
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Parcel & Logistics Segment Revenue Growth: 19.1% increase, with 14.2% growth outside Turkey.
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Retail & Bank Segment Revenue Growth: 23.1% increase, driven by bank99 and favorable interest rates.
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Group Earnings (EBIT): EUR144.7 million, a growth of 10.7%.
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Parcel & Logistics EBIT: EUR64.7 million, including a EUR9.6 million provision for a put option.
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Mail Segment EBIT: EUR115.2 million, supported by election-related mail voting.
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Retail & Bank Revenue: EUR146 million, up from EUR118.6 million last year.
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Self-Service Stations: Increased from 575 to 1,217, with a target of 1,500 by year-end.
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Operating Free Cash Flow: EUR209.3 million.
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CapEx Expectation: EUR140 million to EUR150 million for the full year.
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Full Year Revenue Outlook: Expected to reach around EUR3 billion.
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Full Year EBIT Outlook: Improvement of at least 5%, targeting slightly over EUR200 million.
Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Oesterreichische Post AG (OSTIY) reported strong revenue growth of 13.6% for the first nine months of 2024, with all three business segments showing positive growth.
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The Parcel & Logistics segment experienced robust double-digit growth of 19.1%, driven by strong e-commerce demand and market share gains, particularly from Chinese platforms.
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The Retail & Bank segment showed the strongest growth at 23.1%, supported by favorable interest rates and organic growth within bank99.
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The company has expanded its self-service network significantly, more than doubling the number of postal stations to 1,217, with plans to reach around 1,500 by year-end.
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Oesterreichische Post AG (OSTIY) maintains a solid balance sheet with low leverage and strong equity, alongside good cash flow generation and substantial investments in green transformation initiatives.
Negative Points
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The Mail business, although profitable, is structurally declining with a volume decline trend of around 6% due to electronic substitution.
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The challenging economic environment in Turkey, characterized by high inflation and currency volatility, affects revenue translation into euros.
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The company faces increased factor costs, including staff costs, which are expected to rise by 6.45% in 2025.
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Oesterreichische Post AG (OSTIY) anticipates a reduction in election-related revenues, which contributed over EUR30 million in 2024, impacting future revenue growth.
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The Retail & Bank segment continues to incur integration costs related to the migration of the core banking system, affecting profitability.