Francotyp-Postalia Holding: Strong growth in Mailstream business
- freesort reaches the milestone figure of 10 million consolidated letters in one month
- Strong growth in Mailstream business set to continue in 2008
- FP Group expects moderate revenue growth in 2008
Birkenwerder, December 18, 2007, freesort GmbH, Düsseldorf, a subsidiary of Francotyp-Postalia Holding AG, achieved the milestone figure of 10 million consolidated letters for the first time in November 2007, thus increasing the number of letters by more than 200% within a year. Freesort, a company acquired at the end of 2006, currently operates 9 sorting centres throughout Germany and has become one of the leading providers for the consolidation of outbound mail in Germany. Francotyp-Postalia board member Manfred Schwarze explains: “We have achieved an important milestone with 10 million consolidated letters in a single month. These 10 million letters currently correspond to a run rate of 100 to 120 million consolidated letters”. In 2006, freesort consolidated around 35 million letters.
The positive development of the Mailstream business, which includes outsourcing of outbound mail and hybrid mail solutions in addition to consolidation, was recently confirmed by Francotyp-Postalia’s nine-month report. According to the report, revenues in this segment rose by 62% during the current fiscal year to € 6.0 million compared to € 3.7 million in the same period the year before. For the entire fiscal year 2007, Francotyp-Postalia is also expecting double-digit growth in this segment. “This growth is set to continue in 2008", explains Schwarze. “Thanks to the liberalisation of the postal markets, we benefit in particular from companies’ willingness to outsource their outbound mail to experts.” The entire FP group, is expecting a moderate revenue growth in a consolidated basis in 2008.
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About Francotyp-Postalia Holding AG
Francotyp-Postalia Holding AG can look back on a corporate history of over 80 years. The focus of business activities is developing, producing and selling franking machines and selling inserting machines. These activities in the mailroom business generate a high level of recurring income, which makes up more than 60 percent of group revenues. The engine of this revenues stability is the 248,000 electronic franking machines installed for customers which generate after-sales business. In Germany Francotyp-Postalia is the market leader in the franking machine business with a current market share of 45 percent. To the end of 2006, the global market share was approximately 9 percent. The most important markets for Francotyp-Postalia are Germany, the USA, the Netherlands and the UK.
In addition, in the mailstream business, postal services are provided. These include collection, sorting and consolidation of outgoing customer post and electronic hybrid mail, something which is gaining in importance. In the 2006 financial year (year end 31 December), with 939 employees, the Francotyp-Postalia Group generated consolidated revenues of approximately EUR 143 million* and EBITDA adjusted for non-recurring effects of approximately EUR 32.2 million*, representing an EBITDA margin of approximately 22 percent*.
(*) *In the 2005 annual financial statements reported as pro forma figures due to the first-time consolidation of the FP Group in its present form in 2005.
