Oesterreichische Post 2Q 20 - No short term benefits from online shopping boom
In contrast to the other European Postal operators reporting results this week Oesterreichische Post (Austrian Post) recorded a slump of operating earnings (operating profit -71% yoy in 2Q 20). However, the strong decline was about in line with RCB and market expectations. The main reasons for the different development vs. peer companies in our view are: 1) relatively smaller parcel operations as a share of group profits, so that strongly rising parcel volumes could not overcompensate the declining mail business, 2) ramp up costs for the build-up of the new financial services business and 3) additional expenses for logistics inefficiencies (integration of DHL volumes, Covid-19 related e-commerce boom).Austrian Post is a logistics and postal services provider in Austria. Its main business activities include the transport and delivery of letters, direct mail items, print media and parcels. Co.'s branch network offers postal, banking and telecommunications products and services to its customers throughout Austria. Co. is also represented by subsidiaries in 12 European markets, particularly in the parcel and logistics segment as well as in unaddressed direct mail items.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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