The Postal Services business group’s net sales decreased by 3.5% to EUR 742.3 (769.0) million. The decrease in net sales was attributable to a decline in domestic delivery product volumes. The volumes of addressed letters, newspapers and magazines decreased significantly compared to the previous year. The volumes of electronic letters and unaddressed deliveries grew. Posti has found new business by delivering items shipped to Russia by Chinese online stores.
The volumes of unaddressed deliveries increased as a result of Postinen, which was launched in March. Since the beginning of March 2015, households have received advertisements and other unaddressed items in a separate wrapped bundle twice a week. The aim of Postinen is to improve the competitiveness of paper communications and the profitability of delivery. Postinen makes the sorting more efficient and saves working hours when the bunching is done by machines. Postinen also acts as a new kind of marketing tool for the advertisers.
The business group’s operating result before non-recurring items declined and amounted to EUR 56.4 (66.0) million. Non-recurring items recognized during the period totaled EUR 0.9 (0.1) million. The strong result early in the year was supported by improvements in operational efficiency and the increases in postage fees that took effect at the beginning of 2015. Cost adaptation measures implemented during the year did not fully compensate for the decline in the volume of domestic delivery products. The decline in the volume of addressed domestic letters accelerated in the fourth quarter.
The operating result was EUR 57.3 (66.1) million.
The year-on-year development of mail delivery volumes was as follows:
- Addressed letters, -8% (-10%)
- Unaddressed direct marketing, +5% (-33%)
- Newspapers, -27% (-13%)
- Magazines, -9% (-10%)
- Electronic letters, +4% (+7%)
The volume of addressed letters declined by -8% (-10%). The volume of unaddressed deliveries increased as a result of Postinen, which was launched in March. Newspaper delivery volumes declined by -27% (-13%), largely due to the expiration of early-morning delivery agreements in 2014. Magazine delivery volumes declined by -9% (-10%).
The number of Netposti users increased by 8% year-on-year and stood at 636,000 at the end of the year. Netposti is an electronic mailbox provided by Posti.