Paris - December 17th, 2009
La Poste group targets for 2010
Revenue Stability and Maintenance of Operating Margin
The Board of Directors of La Poste, meeting today under the chairmanship of Jean-Paul Bailly, reviewed the earnings outlook for the end of FY 2009 and approved the Group’s 2010 budget.
For 2009, revenue is expected to decline by around -3% on 2008. As already indicated when releasing the interim results, this reduction in revenue stems from a fall-off in volumes at Mail (-5.8%) and Parcels/Express (-4.5%). La Banque Postale continues to break new ground, particularly in new home loan generation and in growing the number of products per customer, with the 4% plus growth in its net banking income helping to limit the fall-off in the Group’s consolidated revenue.
La Poste expects to achieve a consolidated operating margin of around 2.5% this year, under target on the back of a larger than anticipated decline in mail volumes. Operating profit is expected to be about €500 million. The various businesses have introduced cost cutting programmes that for the first time make it possible to target a reduction in La Poste’s expenses at constant scope and exchange rates by year-end compared to last year. This cost cutting comes hand-in-hand with the best delivery performance ever (over 84.5% for first‑class mail and over 93% for tracked parcels delivered in D+2).
A high-level of investment continued (close to €900 million) and remains covered by cash flows. La Poste contributed some €240 million to the economic stimulus plan.
2009’s results will be released on 11 March 2010.
For 2010, La Poste Group expects consolidated revenue to be almost unchanged, on the back of very mixed performances across its various businesses: a continued fall-off in volumes (-5%) and the development of new offerings allowing the decline in Mail revenue to be limited to -3%; renewed growth in Parcels and Express services, with revenue up +6.2%; and the continued sustained growth at La Banque Postale (+6% excluding the change in the home ownership savings provision).
In an uncertain economic and competitive environment, La Poste’s goal will be to keep its operating margin stable at 2009 levels. The cost cutting policy and the development of new businesses will continue in 2010. Investment targets continue to be high (€1.1 billion), reflecting La Poste’s ambitions against the background of the planned capital increase:
- Modernisation of Mail industrial centres;
- Modernisation of post offices;
- Maintenance of local coverage;
- Development of La Banque Postale;
- Acquisitions in Express and Mail growth areas; and
- Phase two of the contribution to the economic stimulus plan.
PRESS CONTACTS
Print media
David Lhote
Tel : +33 (0)1 55 44 22 42
david.lhote@laposte.fr
Broadcast media
Jacques Gourier
Tel : +33 (0)1 55 44 22 43
jacques.gourier@laposte.fr
