Austrian Post confirms cost-reduction measures to limit coronavirus revenue losses

Austrian Post coronavirus

Austrian Post confirmed that it maintained its business during the coronavirus spread but it anticipates revenue losses depending on the duration and consequences of the current restrictions.

It added that a solid balance sheet enhances its resilience, but from today’s perspective, the effect on earnings for the year 2020 cannot be estimated. Overall, cost reduction measures have been initiated alongside the postponement of not time-critical projects. These relates to staff costs, including partial short-time work and the reduction of unused vacation time, as well as material costs.

Austrian Post said that it expects a decline in letter mail and particularly in direct mail volumes with respect to its revenue development over the coming months, and thus, for the entire year 2020. With the exception of the retail food sector, advertising mail is strongly affected, the extent of which will depend on the duration of store closures. It further deems that the limited international movement of goods can also have a negative impact. According to the operator, the crisis sparked an increased demand in the private customer parcel (B2C) segment in Austria but has also had a negative impact due to the insufficient availability of products. In contrast, a negative volume development is expected at present in the business parcel (B2B) business.

Austrian Post confirmed that its branch offices and the majority of postal partners will remain open to the population where officially permitted. The delivery staff continues to visit four million households and companies on a daily basis, despite difficult conditions related to restrictions of public life and border closings. The employees at the distribution centres also continue to be deployed around the clock for the purpose of sorting letters and parcels.

Source: Austrian Post

 

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