Posten Norge reports record decline in third quarter mail volumes

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Norwegian postal service Posten Norge has reported revenue of Nkr5.6bn (US$670m) in the third quarter of 2018, representing a decline of 2.8% year-on-year. Adjusted operating profit in the third quarter amounted to Nkr126m (US$15m).

Posten Norge has attributed the decline in revenue to a record-high decline in mail volumes, with a 15.5% decrease for the quarter.

Tone Wille, CEO of Posten Norge, said, “Market developments are driving the need for further restructuring of the postal network. Each household on average is now receiving only three items of addressed mail a week. This level no longer justifies the need for daily mail distribution. Alternative solutions will have to be found for customers with special needs, such as newspapers.”

The logistics segment increased revenues by Nkr451m (US$54m) to Nkr12.6bn (US$1.5bn) for the year to date.

Adjusted operating profit for the logistics segment was Nkr87m (US$10.4m) in the third quarter, Nkr10m (US$1.2m) higher than the same period in 2017. The performance was affected by a weak start to the year.

“It is gratifying that in the third quarter we can begin to see the effects of the previously announced streamlining measures in several areas, and that the adjusted profit for the logistics segment has increased compared with the same quarter last year,” added Wille.

“However, the overall profit for the logistics area is still not satisfactory, and work on improvement measures continues.”

The Norwegian parcel and freight network is undergoing an extensive restructuring process that will continue until 2020.

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Dan joined Postal and Parcel Technology International in 2014 having spent the early years of his career in the recruitment industry. As assistant editor, he now produces daily content for the website and supports the editors with the publication of each exciting new issue. When he’s not reporting on the latest logistics news, Dan can be found apprehensively planning his next DIY project for his new home.

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