Danish postal service continues to lose money, but closer to breaking even
The Danish arm of the PostNord company is still loss-making but has come closer to profit during 2019.
The first nine months of 2019 have returned a loss of 80 million kroner, Ritzau writes.
That represents an improvement on the 307 million kroner loss in the same period last year, according to company results released on Friday.
PostNord’s total operations in Denmark, Norway, Finland and Sweden have resulted in an operational profit of 251 million kroner, compared to a 50 million korner loss for the same period in 2018.
Recent years have seen the company struggle to cope with huge falls in the volume of letters being sent, as digitalization has gradually taken over much of the post’s traditional functions.
PostNord took over Denmark’s post distribution after the partial privatization and selling off of national service Post Danmark.
Today, the company’s primary focus is to deliver parcels, a sector which is in growth due to the advent of online shopping.
Results for the company in Denmark are partly due to a major cost cutting plan implemented last year. Billions of kroner were spent by the company to release thousands of employees.
The company has also cut deliveries, raised prices and closed virtually all of Denmark's post offices over the last decade, replacing them with counters in supermarkets and convenience stores.
The Danish and Swedish states, which are joint owners of PostNord, injected funds to assist the company during the 2018 cost-cutting programme.
An EU commission opened in June this year will investigate whether state support of around two billion kroner from Denmark and Sweden breached EU rules.
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The first nine months of 2019 have returned a loss of 80 million kroner, Ritzau writes.
That represents an improvement on the 307 million kroner loss in the same period last year, according to company results released on Friday.
PostNord’s total operations in Denmark, Norway, Finland and Sweden have resulted in an operational profit of 251 million kroner, compared to a 50 million korner loss for the same period in 2018.
Recent years have seen the company struggle to cope with huge falls in the volume of letters being sent, as digitalization has gradually taken over much of the post’s traditional functions.
PostNord took over Denmark’s post distribution after the partial privatization and selling off of national service Post Danmark.
Today, the company’s primary focus is to deliver parcels, a sector which is in growth due to the advent of online shopping.
Results for the company in Denmark are partly due to a major cost cutting plan implemented last year. Billions of kroner were spent by the company to release thousands of employees.
The company has also cut deliveries, raised prices and closed virtually all of Denmark's post offices over the last decade, replacing them with counters in supermarkets and convenience stores.
The Danish and Swedish states, which are joint owners of PostNord, injected funds to assist the company during the 2018 cost-cutting programme.
An EU commission opened in June this year will investigate whether state support of around two billion kroner from Denmark and Sweden breached EU rules.
READ ALSO:
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