Press Release

Quarterly result reflects challenges facing Swiss Post

Swiss Post generated a lower result in the first quarter of 2019 than in the prior-year period. At 130 million francs, Group profit was down 17 million francs year-on-year. At 172 million francs, operating profit (EBIT) was also 35 million lower than in the previous year. This decline was due to a drop in revenue in the core business in addition to persistently low interest income at PostFinance.

The challenges facing Swiss Post are reflected in the operating profit of 172 million francs. The financial services market suffered a decline compared to the previous year. This was due to market-related lower interest income. The downward trend in results comes as no surprise to Swiss Post. The influencing factors – declining letter volumes, price and margin pressure in logistics and persistently low interest rates – are well known and are becoming increasingly pronounced. Swiss Post nonetheless still has a solid financial basis.

The previous year’s figures were maintained overall in the communication and logistics market. This was partly due to efficiency measures, and partly due to rising parcel volumes. The result is also on a par with the previous year’s level in the passenger transport market. Operating income declined by 60 million francs from 1,996 million francs to 1,936 million francs, which is 3 percent down on the previous year.

Contributions to the results by the business units

In the first quarter of 2019, PostMail achieved a result of 109 million francs, down 8 million francs year-on-year. Customers are increasingly opting for digital services. This is leading to a decline in consignment volumes, and hence a 20 million franc drop in revenue from addressed letters. As in previous years, the decline in profit was offset thanks to constant optimization of internal processes and the positive development of international business.

PostalNetwork more than compensated for losses in over-the-counter transactions in letters and inpayments.  The operating result at PostalNetwork rose by 5 million francs due to the development of the postal network and efficiency improvements. It stood at −21 million francs in the first quarter of 2019.

The products offered by Swiss Post Solutions to help companies with the outsourcing of business processes and with services in document solutions are meeting with growing demand. SPS generated an operating profit of 10 million francs, up 3 million francs year-on-year (+43 percent). SPS succeeded in acquiring new customers in the US in particular.

Swiss Post delivers over 500,000 parcels in Switzerland each working day on average. Parcel volumes processed in Switzerland have grown year-on-year – as have import and export volumes. The overall increase stood at 7.4 percent. PostLogistics posted operating profit of 33 million francs in the first quarter of 2019, which was 1 million francs lower than the previous year’s level. The decline was mainly due to expenses for capacity expansion.

PostFinance is taking the current very low interest rates and changing customer requirements as an opportunity to consistently gear its strategy towards the transformation into a “digital powerhouse”. In the medium and long term, expansion of the investment business or innovations will not be sufficient to compensate for PostFinance’s competitive disadvantage in not being able to issue its own loans and mortgages, however. Operating profit at PostFinance stood at 80 million francs in the first quarter, 16 million francs down on the previous year. Interest income decreased by 42 million francs.

The reorganization is ensuring stability at PostBus. At 3 million francs, operating profit at PostBus remained virtually unchanged in relation to the previous year. During the first three months of the year, rising project costs and services provided to employees had a particularly marked impact on the result. The comprehensive range of services provided by PostBus continues to enjoy growing passenger demand.

Group key figures
Unit
Full year 2018
Q1 2018
Q1 2019
Group key figures
Operating income
Unit
CHF million
Full year 2018
7'691
Q1 2018
1'996
Q1 2019
1'936
Group key figures
Operating profit (EBIT)
Unit
CHF million
Full year 2018
501
Q1 2018
207
Q1 2019
172
Group key figures
Group profit
Unit
CHF million
Full year 2018
405
Q1 2018
147
Q1 2019
130
Group key figures
Total assets
Unit
CHF million
Full year 2018
124'202
Q1 2018
124'202
Q1 2019
125'944
Group key figures
Equity
Unit
CHF million
Full year 2018
6'732
Q1 2018
6'732
Q1 2019
7'044
Group key figures
Investments
Unit
CHF million
Full year 2018
412
Q1 2018
65
Q1 2019
82
Group key figures
Headcount at Swiss Post Group
Unit
FTEs
Full year 2018
41'632
Q1 2018
41'565
Q1 2019
41'076
PostFinance Ltd key figures
Unit
Full year 2018
Q1 2018
Q1 2019
PostFinance Ltd key figures
Number of customers
Unit
In thousands
Full year 2018
2'857
Q1 2018
2'882
Q1 2019
2'805
PostFinance Ltd key figures
Customer assets
Unit
CHF million
Full year 2018
118'943
Q1 2018
122'407
Q1 2019
118'712
PostFinance Ltd key figures
Customer assets in partner solutions
Unit
CHF million
Full year 2018
10'074
Q1 2018
10'025
Q1 2019
11'079
PostFinance Ltd key figures
Mortgages 
Unit
CHF million
Full year 2018
5'816
Q1 2018
5'712
Q1 2019
5'858
PostFinance Ltd key figures
Development of customer assets
Unit
CHF million
Full year 2018
-822
Q1 2018
2'538
Q1 2019
-232
PostFinance Ltd key figures
Headcount
Unit
FTEs
Full year 2018
3'325
Q1 2018
3'400
Q1 2019
3'235

Selected key figures per segment

Operating income (CHF million) Segment 31. 03. 2018 31. 03. 2019
Operating income (CHF million)
Communication market
Segment
PostMail
31. 03. 2018
718
31. 03. 2019
676
Operating income (CHF million)
Communication market
Segment
Swiss Post Solutions
31. 03. 2018
144
31. 03. 2019
155
Operating income (CHF million)
Communication market
Segment
PostalNetwork
31. 03. 2018
283
31. 03. 2019
256
Operating income (CHF million)
Logistics market
Segment
PostLogistics
31. 03. 2018
404
31. 03. 2019
418
Operating income (CHF million)
Financial services market
Segment
PostFinance
31. 03. 2018
454 
31. 03. 2019
432
Operating income (CHF million)
Passenger transport market
Segment
PostBus
31. 03. 2018
235
31. 03. 2019
234

 

Operating profit  (CHF million) Segmente 31. 03. 2018 31. 03. 2019
Operating profit  The operating profit corresponds to the result before net non-operating financial income and taxes (EBIT). (CHF million)
Communication market
Segmente
PostMail
31. 03. 2018
117
31. 03. 2019
109
Operating profit  The operating profit corresponds to the result before net non-operating financial income and taxes (EBIT). (CHF million)
Communication market
Segmente
Swiss Post Solutions
31. 03. 2018
7
31. 03. 2019
10
Operating profit  The operating profit corresponds to the result before net non-operating financial income and taxes (EBIT). (CHF million)
Communication market
Segmente
PostalNetwork
31. 03. 2018
-26
31. 03. 2019
-21
Operating profit  The operating profit corresponds to the result before net non-operating financial income and taxes (EBIT). (CHF million)
Logistics market
Segmente
PostLogistics
31. 03. 2018
34
31. 03. 2019
33
Operating profit  The operating profit corresponds to the result before net non-operating financial income and taxes (EBIT). (CHF million)
Financial services market
Segmente
PostFinance
31. 03. 2018
96
31. 03. 2019
80
Operating profit  The operating profit corresponds to the result before net non-operating financial income and taxes (EBIT). (CHF million)
Passenger transport market
Segmente
PostBus
31. 03. 2018
4
31. 03. 2019
3

Information

Jacqueline Bühlmann, Swiss Post Media Unit, 058 341 37 80, presse@swisspost.ch