Mail delivery volumes kept declining during the first part of the year

21.06.2010

In January-May of this year, the volume of the addressed mail delivered by Itella was 3%, i.e. about 20 million items, lower than during the same period of the previous year. The volume of letters, magazines, addressed direct marketing messages and parcels delivered by Itella has been declining for more than 18 months. The volume of the addressed mail delivered has been decreasing by approximately 200 million items at the annual level.

- The decline in delivery volumes is affected by both the transition from paper to electronic communication, and the economic recession. Itella has been doing its best to adapt to the changes by means of efficient cost control. At Itella Mail Communication, the number of personnel has decreased by about 1,500 persons in less than two years. Despite this, the unit costs are rising because the universal service obligation - i.e. five-day delivery and an extensive outlet network - creates costs that cannot be easily adjusted according to the delivery volumes. At this point the mail volumes are not showing any clear signs of the improved economic situation, says Kari Kivikoski, Senior Vice President at Itella Mail Communication.

 

 

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Itella Group provides solutions for managing information and product flows. Itella operates in mail communication, information logistics and logistics in northern and central Europe, and in Russia. The Group employs some 30,000 staff and reported net sales of EUR 1,820 million in 2009. Corporate services are delivered under the Itella brand, while the Posti brand is used for services targeted at consumers in Finland. More information on the Group is available at www.itella.fi/group/english.