Press releases, Press releases Mobility Solutions Ltd, Press releases Post Real Estate Management and Services Ltd

Swiss Post achieves stable result in third quarter

In the first three quarters of 2015 Swiss Post generated a Group profit* of 503 million francs (previous year: 494 million francs). At 640 million francs, operating profit* (EBIT) is on a par with the previous year’s level (632 million francs). The slight increase is due to higher operating profit on the financial services market despite the ongoing low interest rate situation. The other markets made lower contributions to the result year-on-year.

In the first nine months of the year, Group profit[1] stood at 503 million francs, which represents an increase of 9 million francs. At 640 million francs, operating profit[1] (EBIT) is 8 million francs up on the previous year’s figure. This is principally due to lower book losses on financial assets and significantly higher net trading income following the lifting of the minimum euro exchange rate. The number of addressed letters declined further – albeit at a slower rate. The logistics market continues to face intense competition.

In the communication market, Swiss Post recorded an operating profit[1] (EBIT) of 166 million francs in the first three quarters of 2015 (previous year: 188 million francs). The decline in income at PostMail and Post Offices & Sales, caused by slightly lower volumes, could not be offset, despite a reduction in expenses in all the units within this market and the higher contribution to the results from Swiss Post Solutions. The number of addressed letters fell by just 1.0 percent, while the number of unaddressed items actually rose by 1.2 percent.
In the logistics market, Swiss Post recorded an operating profit[1] (EBIT) of 95 million francs, which is around 2 million francs less than in the prior-year period. Declines in revenue from small consignment transport and warehousing, combined with lower income in the fuel business, were mostly offset by higher parcel volumes and optimized operating expenses. Parcel volumes were up 2.5 percent.
In the passenger transport market, Swiss Post recorded an operating profit[1] (EBIT) of 29 million francs (previous year: 36 million francs). While operating income remained in line with the previous year, operating expenses[1] rose year-on-year due to the higher headcount. The number of kilometres covered by PostBus increased by 1.0 percent.

PostFinance benefits from upturn in foreign exchange trading

PostFinance, which operates in the financial services market, achieved an operating profit[1] (EBIT) of 351 million francs, which represents an increase of 42 million francs year-on-year. Lower book losses on financial assets and higher transaction volumes on the currency markets following the lifting of the
minimum euro exchange rate made a substantial contribution to the improvement in results. However, net interest income before impairment was down year-on-year due to the ongoing very low, and in some cases negative, interest rates on the markets. As a result of targeted measures in connection with the introduction of negative interest rates by the Swiss National Bank, customer deposits have declined by 4.4 billion francs since the beginning of the year. During the same period, 13,000 new customers placed their trust in PostFinance.

Group profit affected by one-off items

In the first nine months of 2015, Swiss Post’s financial result includes one-off items with a total net value of 14 million francs in terms of Group profit. The non-consideration (normalization) of one-off items allows comparison with the previous year and provides an accurate representation of the current operating business performance.

Outlook

In light of the current position, Swiss Post expects to meet the financial goals of its owner again in 2015. Group profit[1] is likely to be slightly below the previous year’s level.

1  Normalized figure

Group key figures

Unit Q1 - Q3 2015 Q1 - Q3 2014 Full year 2014
Operating income CHF m 6,015 6,119 8,457
Operating profit (EBIT)[1] CHF m 640[2] 632 803
As a % of operating income (EBIT return) % 10.6 10.3 9.5
Group profit CHF m 503[2] 494 638
Total assets CHF m 119,974 123,949 124,671
Equity CHF m 5,297 5,431 5,010
Cash flow from investing activities CHF m -504 -528 -369
Headcount at Swiss Post Group FTEs[3] 44,032 44,687 44,681

1  The operating profit corresponds to the result before net non-operating financial income and taxes (EBIT).

2  Normalized figure

3  FTEs = Full-time equivalents. Average expressed in terms of full-time equivalents, excluding trainees.

PostFinance Ltd key figures

Unit[1] Q1 - Q3 2015 Q1 - Q3 2014 Full year 2014
Number of customers Thousands 2,951 2,928 2,938
Number of customer accounts Thousands 4,832 4,726 4,752
Inflow of new money[2] CHF m -4,409 1,010 2,839
Customer assets[2] CHF m 113,011 115,467 117,186
Customer assets in partner solutions[2] CHF m 7,466 6,825 7,125
Mortgages[3] CHF m 4,988 4,621 4,713
Loans to business customers taken up CHF m 8,097 7,926 8,165
E-finance users Thousands 1,672 1,607 1,624
Headcount FTEs[4] 3,571 3,443 3,466
Transactions processed Millions, cumulative 746 727 996

1  At end of period (unless otherwise stated)

2  Monthly average

3  In cooperation with partner banks

4  FTEs = full-time equivalents. Average expressed in terms of full-time equivalents. Headcount at PostFinance parent company

Selected key figures per segment (Group units)

30 September 2015 Operating income (CHF m)[1] Operating profit (CHF m)[1],[2],[6]
Communication market 3,383 166
PostMail 2,060 246
Swiss Post Solutions 456 10
Post Offices & Sales 1,122 -90
Logistics market PostLogistics 1,131 95
Financial services market PostFinance[3] 1,602 351
Passenger transport market PostBus[4] 627 29
Other[5] 704 -1
30 September 2014 Operating income (CHF m)[1] Operating profit (CHF m)[1],[2]
Communication market 3,500 188
PostMail 2,113 259
Swiss Post Solutions 483 8
Poststellen und Verkauf 1,168 -79
Logistics market PostLogistics 1,138 97
Financial services market PostFinance[3] 1,624 309
Passenger transport market PostBus[4] 627 36
Other[5] 650 2

1  Operating income and operating profit by segment are now reported before management, licence fee and net cost compensation.

2  Operating profit corresponds to earnings before net non-operating financial income/expenses and taxes (EBIT).

3  PostFinance Ltd also applies the ARB accounting rules for banks (Accounting rules for banks, securities dealers, financial groups and conglomerates – ARB). There are differences between the ARB and the IFRS results.

4  In the field of regional public transport, PostBus Switzerland Ltd is subject to the DETEC ordinance on the accounting of licensed businesses (RKV). There are differences between the RKV and the IFRS results.

5  Includes service units (Real Estate and Information Technology) and management units (e.g. Human Resources, Finance and Communication).

6  Normalized figures