Press Release

Interim results 2017: Swiss Post remains on track with good interim result

from

In the first half of 2017, Swiss Post generated Group profit of 394 million francs (previous year: 313 million francs). Operating profit (EBIT) rose to 547 million francs, representing an increase of 164 million francs. A large part of this – around 155 million francs – was due to the improved result in the financial services market. Efficiency measures, the restructuring of the post office network and the ongoing adjustment of our services to adapt to changing customer behaviour also contributed to the good result.

Profits are vital to be able to tap into new sources of income as well as to operate and modernize an affordable and needs-based infrastructure. They allow Swiss Post to invest in new parcel centers and new services for customers, and provide funding for the pension fund. “The fact that we are making good progress and have achieved a solid interim result will enable us to continually develop”, says Alex Glanzmann, Head of Finance at Swiss Post. “However, it can also clearly be seen that maintaining a stable operating result is still a major challenge for us”. The market environment continues to be difficult, and pressure remains high on all the Group units due to the digital transformation. Innovations are a key part of digital change, and Swiss Post wants to actively help shape the process in the interests of its customers

 

Markets’ contribution to profit

All the markets contributed to the generally positive interim result. In the communication market, the letter business recorded an operating profit of 186 million francs, which is 3 million francs more than in the prior-year period. However, the number of addressed letters was again down on the previous year (-2.8 percent). Although Post Offices & Sales recorded a loss of -88 million francs, the decline was reduced by 11 million francs. This is due to the restructuring of the post office network, which offset losses in over-the-counter transactions for letters, parcels and inpayments. The volume of inpayments and outpayments over the counter alone declined by 5.8 percent in the first half of the year. In the interests of its customers, Swiss Post will continue to invest significant amounts in new services and modern access points.

Swiss Post Solutions improved operating profit by 5 million to 15 million francs, considerably increasing its EBIT margin. The services offered by Swiss Post Solutions for the outsourcing of business processes and innovative services in document solutions are meeting with growing demand in Switzerland and abroad.

The logistics business posted operating profit of 58 million francs, which was 6 million francs higher than the prior-year figure. Parcel volumes rose sharply once again (+4.9 percent). With a market share of around 80 percent, Swiss Post remains the number one in the Swiss parcel market. However, pressure on margins remains high, partly due to competitors from outside the sector.

In the passenger transport market, PostBus, recorded an operating profit of 20 million francs. Despite increasing the number of kilometres covered, the result was one million francs down year-on-year. This was due to the non-recurring one-off item from the previous year (fuel reimbursement), higher fuel prices and a rise in employee benefit expenses

Lower value adjustments at PostFinance

PostFinance generated operating profit of 392 million francs in the first half of 2017. The 155 million franc rise is mainly due to the base effect on reversals of impairment on financial investments (14 million francs), whereas high value adjustments had been recognized the previous year (110 million francs). The encouraging level of net trading income (+27 million francs) and declining personnel expenses (-11 million francs) contributed to the improved result. PostFinance is still facing a difficult market environment due to persistently low interest rates and the competitive disadvantage in loans and mortgage lending. Net income from the interest differential business alone, our most important pillar, was down 38 million francs due to a lack of profitable investment opportunities.

Swiss Post wants to remain attractive to customers and employees

Der technologische Wandel und die daraus resultierenden Herausforderungen werden auch weiterhin in den einzelnen Märkten stark spürbar sein. Um diesen zu begegnen und die postalische Grundversorgung Technological change and the associated challenges will continue to be very noticeable in the individual markets. Swiss Post must register solid profits in order to meet these challenges and fulfil its obligation to provide a universal postal service in accordance with postal legislation. It attaches a great deal of importance to a high-quality service, which it provides in full. As part of the digital transformation, Swiss Post is investing in a modern infrastructure from its own resources, as well as funding basic and advanced training for its employees.

Swiss Post is adapting to the changes in the market and taking action early on. This will ensure that it can offer its customers first-class services in the long term, and remain attractive in the future as the third-largest employer in Switzerland. 

Information

Swiss Post Media Unit: 058 341 21 95

Group key figures
First half 2017
First half 2016
Full year 2016
Group key figures
Operating income (CHF million)
First half 2017
4'094
First half 2016
4'150
Full year 2016
8'188
Group key figures
Operating profit (EBIT) 1
First half 2017
547
First half 2016
383
Full year 2016
704
Group key figures
As a % of operating income (EBIT return)
First half 2017
13,4
First half 2016
9,2
Full year 2016
8,6
Group key figures
Group profit (CHF million)
First half 2017
394
First half 2016
313
Full year 2016
558
Group key figures
Total assets (CHF million)
First half 2017
127'270
First half 2016
127'889
Full year 2016
126'609
Group key figures
Equity (CHF million)
First half 2017
6'395
First half 2016
4'276
Full year 2016
4'881
Group key figures
Cash flow from investing activities (CHF million)
First half 2017
-203
First half 2016
-294
Full year 2016
-509
Group key figures
Headcount at Swiss Post Group (FTEs)  2
First half 2017
42'524
First half 2016
43'732
Full year 2016
43'485


1 The operating profit corresponds to the result before net non-operating financial income and taxes (EBIT)
2 FTEs = full-time equivalents. Average expressed in terms of full-time equivalents, excluding trainees

PostFinance Ltd key figures
First half 2017
First half 2016
Full year 2016
PostFinance Ltd key figures
Number of customers (in thousands)
First half 2017
2'934
First half 2016
2'944
Full year 2016
2'952
PostFinance Ltd key figures
Number of customer accounts (in thousands)
First half 2017
4'814
First half 2016
4'832
Full year 2016
4'845
PostFinance Ltd key figures
Customer assets (CHF million)
First half 2017
117'684
First half 2016
117'630
Full year 2016
119'436
PostFinance Ltd key figures
Customer assets in partner solutions (CHF million)
First half 2017
9'065
First half 2016
7'488
Full year 2016
8'246
PostFinance Ltd key figures
 Mortgages (CHF million)  1
First half 2017
5'504
First half 2016
5'174
Full year 2016
5'361
PostFinance Ltd key figures
Loans to business customers (CHF million)
First half 2017
10'080
First half 2016
9'374
Full year 2016
9'894
PostFinance Ltd key figures
E-finance users (in thousands)
First half 2017
1'752
First half 2016
1'717
Full year 2016
1'743
PostFinance Ltd key figures
Headcount (FTEs)  2
First half 2017
3'508
First half 2016
3'622
Full year 2016
3'599
PostFinance Ltd key figures
Processed transactions (million)
First half 2017
522
First half 2016
516
Full year 2016
1'044


1 In cooperation with partner banks.
2 FTEs = full-time equivalents. Average expressed in terms of full-time equivalents. Headcount at PostFinance parent company.

Selected key figures per segment

30. June 2017
Goup unit Operating income (CHF million)  Operating profit (CHF million) 1
30. June 2017
Communication Market
Goup unit
PostMail
Operating income (CHF million)
1'429
 Operating profit (CHF million) 1
186
30. June 2017
Communication Market
Goup unit
Swiss Post Solutions
Operating income (CHF million)
271
 Operating profit (CHF million) 1
15
30. June 2017
Communication Market
Goup unit
Post Offices & Sales
Operating income (CHF million)
538
 Operating profit (CHF million) 1
-88
30. June 2017
Logistics market
Goup unit
PostLogistics
Operating income (CHF million)
791
 Operating profit (CHF million) 1
58
30. June 2017
Financial services market
Goup unit
PostFinance
Operating income (CHF million)
1'111
 Operating profit (CHF million) 1
392
30. June 2017
Passenger transport market
Goup unit
PostBus
Operating income (CHF million)
464
 Operating profit (CHF million) 1
20
30. June 2016 Group unit Operating income (CHF million)
Operating profit (CHF million) 1
30. June 2016
Communication Market
Group unit
PostMail
Operating income (CHF million)
1'485
Operating profit (CHF million) 1
183
30. June 2016
Communication Market
Group unit
Swiss Post Solutions
Operating income (CHF million)
285
Operating profit (CHF million) 1
10
30. June 2016
Communication Market
Group unit
Post Offices & Sales
Operating income (CHF million)
576
Operating profit (CHF million) 1
-99
30. June 2016
Logistics market
Group unit
PostLogistics
Operating income (CHF million)
772
Operating profit (CHF million) 1
52
30. June 2016
Financial services market
Group unit
PostFinance
Operating income (CHF million)
1'126
Operating profit (CHF million) 1
237
30. June 2016
Passenger transport market
Group unit
PostBus
Operating income (CHF million)
457
Operating profit (CHF million) 1
21


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