MAIL

Revenue slightly below prior-year level

Revenue in the first half of 2010, which had one additional working day, was €6,652 million and therefore slightly below the prior year’s figure of €6,695 million. The sharp declines in revenue resulting from the economic crisis are behind us. Exchange rate gains amounted to €9 million. 
 

Mail business revenue and volumes stable

Revenue in the Mail Communication business unit fell only slightly in the reporting period, from €2,872 million to €2,816 million. The increasing use of electronic means of communication is resulting in ongoing shrinkage of the market. Since the first quarter of 2010 the economy is no longer intensifying this trend. Indeed, sales volumes in the second quarter were at prior-year levels. 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 light of the poor economic conditions. 

Mail Communication: volumes
mail items (millions)
	H1 2009	H1 2010	+/– %	Q2 2009	Q2 2010	+/– %
Business customer letters	3,328	3,262	–2.0	1,544	1,536	–0.5
Private customer letters	606	594	–2.0	290	283	–2.4
Total	3,934	3,856	–2.0	1,834	1,819	–0.8

Customers still advertising less

In times of economic difficulty, customers change their advertising behaviour, a tendency that we continue to observe in the Dialogue Marketing business unit. Mail-order companies, in particular, are investing less in advertising. Overall volumes declined for both addressed and unaddressed advertising mail in the first half of 2010. Revenue fell from €1,295 million in 2009 to €1,264 million in 2010, a decrease of 2.4%. 

Dialogue Marketing: volumes
mail items (millions)
	H1 2009	H1 2010	+/– %	Q2 2009	Q2 2010	+/– %
Addressed advertising mail	3,034	2,964	–2.3	1,469	1,444	–1.7
Unaddressed advertising mail	2,239	2,086	–6.8	1,038	969	–6.6
Total	5,273	5,050	–4.2	2,507	2,413	–3.7

Newspaper and magazine market continues downward trend

Revenue in the Press Services business unit amounted to €402 million in the reporting period, 2.9% below the prior-year figure of €414 million. Falling circulations and the discontinuation of some publications could be observed in the declining newspaper and magazine market. By contrast, the average publication weights were stable.