The annual turnover for POST in 2017 rose by 6% to €769.6 million.
On Friday 18 May 2018, the public company presented its results at its head office, rue de Reims. The turnover for the year 2017 rose by 6% to 769.6 million euros as a result of the integration of a new subsidiary into the Group (Elgon/Ainos) and due to the increase in turnover of each of the three core segments.
However, a very positive performance in terms of turnover has enabled the POST Luxembourg Group to stabilise its operational income. Several exceptional events, such as the sale of its stake in Eutelsat lead to a 59% increase in net income to €36.7 million (after tax - Group holding).
For the first time, POST's annual report included both its financial performance (profitability) and its extra-financial performance (linked to its sustainable development commitments). In its first integrated report, an improvement is evident in terms of accessibility of the sales outlets owing to the extended opening hours of Points POST (partner businesses) which has contributed to an increase (+47%) in the total number of opening hours of postal services outlets. Furthermore, the end-to-end fibres installed over several years by POST has reached 1.1 million km and the number of connectible households has now reached 61.8%.
Moreover, the elimination of roaming charges (“Roam like at home”) has weighed heavily on POST Telecom’s turnover: its impact has been estimated at approximately €8 million (which represents €5-6 million in net income). POST also managed to stabilise the downturn in telecom income in a market environment which is characterised by an explosion in mobile data, a need to invest in higher-performance networks, binding regulations and strict pressure on prices.
Meanwhile, the domestic mail activity continued to fall: in 2017, the volume of letters decreased by 4.2% year-on-year, which represents about 22 million letters in 4 years. This decline was only partially offset by parcel volumes, which increased by 15% (1.3 million more parcels as compared to 4 years ago). The postal financial services continue to suffer as a result of historically low interest rates. The tariff reform implemented beginning of 2017 aimed to improve the profitability of the CCP and encourage our customers to consume less paper for their bank statements and to promote the use of our services via digital platforms (CCP Connect and CCP Mobile) or self-banking (ATM).
Finally, 2017 was a year of changes for POST Luxembourg Group, from the re-sale of its TNT shareholding and welcoming Elgon/Ainos into the Group to the disposal of its stake in Eutelsat with the subsequent acquisition of a stake in Encevo beginning 2018, as well as the takeover of Join in December 2017. The parent company now oversees a total of 24 subsidiaries that constitute the scope of consolidation of the 2017 integrated report. Their objective is to boost innovation in key market segments of the Group and to improve customer service. On average, these companies employed 4,371 people in 2017, consisting of 43 nationalities.
With 379 new employees in 2017, 576 trainees and students welcomed and partnerships formed with leading schools, the POST Luxembourg Group is relying heavily on those who can foster the digitalisation of its activities.