MAIL

Revenue declines in cyclical business units

In the first half of 2009, revenue decreased by 5.6% to €6,695 million (previous year: €7,089 million), in part from 2.4 fewer working days in the period. In areas sensitive to economic developments, revenue remained below the prior-year figures in line with expectations. Exchange rate gains amounted to €16 million.

Business customers posting fewer letters

Revenue in the Mail Communication Business Unit declined from €3,000 million to €2,872 million. The market is shrinking steadily as a result of increasing use of electronic means of communication. The economic crisis is exacerbating this trend, which is now evident amongst business customers as well. This customer group posted fewer letters in the second quarter in particular. In the regulated mail sector, we kept prices stable although the inflation rate underlying the price cap procedure increased. We retained and regained quality-conscious customers; however, some of our customers turned to competitors as a consequence of a higher sensitivity to prices in the wake of the current economic crisis.

Mail Communication: volumes
mail items (millions)
	H1 2008	H1 2009	+/– %	Q2 2008	Q2 2009	+/– %
Business customer letters	3,456	3,328	–3.7	1,662	1,544	–7.1
Private customer letters	626	606	–3.2	298	290	–2.7
Total	4,082	3,934	–3.6	1,960	1,834	–6.4

Customers advertise more moderately

In a tough economy, customers change their advertising behaviour – a tendency that is becoming apparent in the Dialogue Marketing Business Unit. Mail-order companies, in particular, are investing less in advertising. As a result, volumes declined for both addressed and unaddressed advertising mail. Half-yearly revenue fell from €1,376 million in the first half of 2008 to €1,295 million in the first half of 2009, a decrease of 5.9%.

Dialogue Marketing: volumes
mail items (millions)
	H1 2008	H1 2009	+/– %	Q2 2008	Q2 2009	+/– %
Addressed advertising mail	3,278	3,034	–7.4	1,586	1,469	–7.4
Unaddressed advertising mail	2,471	2,239	–9.4	1,189	1,038	–12.7
Total	5,749	5,273	–8.3	2,775	2,507	–9.7

Newspapers and magazines have fewer pages and less weight

Revenue in the Press Services Business Unit amounted to €414 million, 4.2% below the prior-year figure of €432 million. Both the number of pages and the weight of newspapers and magazines have decreased due to diminishing advertising content. The average prices for distributing these items have therefore dropped.

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