ITELLA CORPORATION STOCK EXCHANGE RELEASE APRIL 29, 2011, AT 12:00 NOON
- The long anticipated revolution in postal sector can now be seen in Itella’s financial results, as delivery volumes experienced the most significant drop seen thus far. With regard to profitability, the 11% decline in first class letters, as well as the decline in newspaper and magazine delivery volumes was significant. In Finland we are now following, with a slight delay, the development which has already occurred in many of our neighboring countries as a result of the breakthrough of e-invoicing and electronic communications.
We were not able to reduce fixed costs as required by the declining volumes. This will contribute to our price development in the near future. We have also launched a substantial cost savings program, which will help ensure a moderate price level. A clear improvement in productivity will also be necessary because of the new competitive situation created by the postal services legislation.
Under the new Postal Services Act, which will enter into force at the beginning of June, the definition of universal service products is clarified and the products are given VAT exempt status. The key principles of the universal service obligation (USO) will mainly remain unchanged. The Ministry of Transport and Communications has assigned a task force to address issues relating to the financing of the universal service.
Itella’s full Interim Report (pdf)
Tuija Soanjärvi, CFO, tel. +358 20 45 20907, firstname.lastname@example.org
NASDAQ OMX Helsinki
FINANCIAL CALENDAR 2011
Interim Report Q2 on Wednesday, July 27
Interim Report Q3 on Wednesday, October 26
PHOTOGRAPHS AND LOGOS
Itella Group provides solutions for managing information and product flows. Itella operates in mail communication, information logistics and logistics in Europe and Russia. Net sales in 2010 amounted to EUR 1,842 million. Itella employs approximately 28,000 personnel. Corporate services are delivered under the Itella brand, while the Posti brand is used for services targeted at consumers in Finland. More information is available online at www.itella.com/aboutus.