Press Release

Q3 2016: Swiss Post’s profit declines in third quarter

In the first three quarters of 2016 Swiss Post generated a Group profit of 466 million francs (previous year: 503 million francs). Operating profit (EBIT) decreased from 640 million to 593 million francs. In the first nine months of 2016, Swiss Post generated Group profit of 466 million francs, 37 million francs less than in the prior-year period. The operating profit of 593 million francs was 47 million francs below the prior-year figure. This decrease was mainly due to the lower result from the communication and logistics markets; the decline in the volume of addressed letters was more pronounced and pressure on parcel margins remains high. At 6,039 million francs, operating income was on a par with the previous year (6,015 million francs).

In the communication market, Swiss Post recorded an operating profit of 94 million francs in the first three quarters of 2016 (previous year: 166 million francs). The decline in profit generated by Post Offices & Sales is principally due to the Group unit’s new internal cost allocation. Operating profit at PostMail fell by 11 million francs to 235 million francs, while Swiss Post Solutions increased its contribution to the result by 5 million to 15 million francs. The decline in the volume of addressed letters was more pronounced: the number fell by almost 4 percent.

In the logistics market, PostLogistics recorded an operating profit of 73 million francs (previous year: 95 million francs). The logistics market continues to be characterized by increasing competition and price pressure, both nationally and internationally. Despite additional income from the 5.6 percent rise in parcel volumes (previous year: + 2.5 percent) and increased demand for value logistics solutions, operating profit fell. This decline is due to modifications to the Group unit’s internal cost allocation.

In the passenger transport market, PostBus increased its operating profit by one million francs to 30 million francs thanks to the low price of fuel. As the budgets of the public entities which act as contracting bodies for transport services are squeezed, the pressure on prices continues to rise.

Sharp decline in interest income

Operating EBIT at PostFinance declined in the first nine months of 2016, principally as a result of the sharp decline in interest income (-93 million francs year-on-year). Thanks to non-recurring revenue from the sale of equity holdings and a participation, PostFinance nonetheless generated operating profit (EBIT) of 410 million francs (previous year: 351 million francs). Despite this, the negative trend in business operations will continue in the coming years, as it is increasingly difficult for PostFinance to find profitable investments for the customer deposits entrusted to it in the current negative interest rate environment due to the lending prohibition.

Outlook

Given the current tense market environment, it will become more and more difficult for Swiss Post to achieve the financial goals set by its owner. As things stand today, Swiss Post nonetheless expects to meet these goals in 2016. Group profit is likely to be below the previous year’s level.

Information:

Swiss Post Media Unit, 058 338 13 07

PostFinance Media Unit, 058 338 30 32

PostBus Media Unit, 058 338 57 00

Group key figures
Unit
Full year 2015 Q3 2015 Q3 2016
Group key figures
Operating income
Unit
CHF million
Full year 2015
8,224
Q3 2015
6,015
Q3 2016
6,039
Group key figures
Operating profit (EBIT) 1
Unit
CHF million
Full year 2015
823 2
Q3 2015
640 2
Q3 2016
593
Group key figures
as % of operating income
Unit
%
Full year 2015
10,0 2
Q3 2015
10,6 2
Q3 2016
9,8
Group key figures
Group profit
Unit
CHF million
Full year 2015
645 2
Q3 2015
503 2
Q3 2016
466
Group key figures
Total assets
Unit
CHF million
Full year 2015
120,327
Q3 2015
119,974
Q3 2016
128,943
Group key figures
Equity
Unit
CHF million
Full year 2015
4,385
Q3 2015
5,297
Q3 2016
4,409
Group key figures
Cash flow from investing activities
Unit
CHF million
Full year 2015
-325
Q3 2015
-504
Q3 2016
-427
Group key figures
Headcount at Swiss Post Group 
Unit
FTEs 3
Full year 2015
44,131
Q3 2015
44,032
Q3 2016
43,600


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

PostFinance Ltd key figures
Unit1 Full year 2015 Q3 2015 Q3 2016
PostFinance Ltd key figures
Number of customers
Unit1
In thousands
Full year 2015
2,951
Q3 2015
2,951
Q3 2016
2,951
PostFinance Ltd key figures
Number of customers accounts
Unit1
In thousands
Full year 2015
4,835
Q3 2015
4,832
Q3 2016
4,784
PostFinance Ltd key figures
Customer assets
Unit1
CHF million
Full year 2015
114,866
Q3 2015
113,011
Q3 2016
120,381
PostFinance Ltd key figures
Customer assets in partner solutions
Unit1
CHF million
Full year 2015
7,772
Q3 2015
7,466
Q3 2016
7,956
PostFinance Ltd key figures
Mortgages 2
Unit1
CHF million
Full year 2015
5,089
Q3 2015
4,988
Q3 2016
5,243
PostFinance Ltd key figures
Loans to business customers 
Unit1
CHF million
Full year 2015
9,063
Q3 2015
8,097
Q3 2016
9,372
PostFinance Ltd key figures
E-finance users
Unit1
In thousands
Full year 2015
1,683
Q3 2015
1,672
Q3 2016
1,736
PostFinance Ltd key figures
Headcount
Unit1
FTEs 3
Full year 2015
3,571
Q3 2015
3,550
Q3 2016
3,612
PostFinance Ltd key figures
Transactions processed
Unit1
In millions cumulative
Full year 2015
1,020
Q3 2015
746
Q3 2016
768


1 At end of period (unless otherwise stated).
2 In cooperation with partner banks.
3 FTEs = Full-time equivalents. Average expressed in terms of full-time equivalents.

Selected key figures per segment (Group units)

Operating income (CHF million)1 Group unit
30. Sept. 2015 30. Sept. 2016 Difference (CHF million)
Operating income (CHF million)1
Communication market
Group unit
PostMail
30. Sept. 2015
2,060
30. Sept. 2016
2,149 7
Difference (CHF million)
89
Operating income (CHF million)1
Communication market
Group unit
Swiss Post Solutions
30. Sept. 2015
456
30. Sept. 2016
416
Difference (CHF million)
-40
Operating income (CHF million)1
Communication market
Group unit
Post Offices & Sales
30. Sept. 2015
1,122
30. Sept. 2016
828 7
Difference (CHF million)
-294
Operating income (CHF million)1
Logistics market
Group unit
PostLogistics
30. Sept. 2015
1,131
30. Sept. 2016
1,144 7
Difference (CHF million)
13
Operating income (CHF million)1
Financial services market
Group unit
PostFinance 3
30. Sept. 2015
1,602
30. Sept. 2016
1,638
Difference (CHF million)
36
Operating income (CHF million)1
Passenger transport market
Group unit
PostBus 4
30. Sept. 2015
627
30. Sept. 2016
684
Difference (CHF million)
57
Operating income (CHF million)1
Other 5
Group unit
 
30. Sept. 2015
704
30. Sept. 2016
680
Difference (CHF million)
-24
Operating profit (CHF million) 1, 2
Group unit
30. Sept. 2015 6
30. Sept. 2016
Difference (Mio. CHF)
Communication market
PostMail
246
235 7
-11
Communication market
Swiss Post Solutions
10
15
5
Communication market
Post Offices & Sales
-90
-156 7
-66
Logistics market
PostLogistics
95
73 7
-22
Financial services market
PostFinance 3
351
410 7
59
Passenger transport market
PostBus 4
29
30
1
Other 5
 
-1
-14
-13


1 Operating income and operating profit (EBIT) by segment are reported before management, licence fees and net cost compensation.
2 The operating profit corresponds to the result before net non-operating financial income and taxes (EBIT). The sharper decline in Post Offices & Sales profit (EBIT) compared with the prior-year period is principally due to the new internal performance mandate of the Group unit or the transfer of responsibility for postal private customer products from Post Offices & Sales to PostMail and PostLogistics
3 PostFinance Ltd also applies the accounting rules for banks, securities dealers, financial groups and conglomerates (ARB). There are differences between the ARB and the IFRS results.
4 Within 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.
7 Figures affected by the new internal performance mandate for Post Offices & Sales.