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Post, mail accounts for only 28% of the business activity

The public operator continues its forced diversification to be less and less vulnerable to the fall of its historical activity. Mail accounted for 71% of the group's turnover in 1991.

With less than 10 billion bids processed in 2018, La Poste has never seen such a decline in the volume of traditional mail: – 7.3% compared to 2017. According to the company, which published its financial results 2018 on February 21, the most affected sectors were banking or telephone services as well as advertising mail.

For the first time, the price of the stamp exceeds one euro

This trend has led to a decrease in turnover of nearly 600 million euros on this activity compared to 2017. In addition, the company did not benefit from an "elections" effect as in the previous year where she distributed electoral propaganda, an impact of 94 million euros. The loss was only partially offset by the increase in postal rates and the growth of international mail flows.

Operating profit down by almost 12%

Overall, La Poste posts sales of 24.7 billion euros (+ 2.4%) for 2017, but operating profit down by almost 12% to 892 million euros and profit net down by 6.3% to 798 million euros. " The year 2018 has been difficult for all La Poste markets ", Said CEO Philippe Wahl, also reminding interest rates still at historically low levels, "Pressure on the margins" parcel activity or rising salary costs, especially to attract drivers …

However, Philippe Wahl also evokes a year 2018 « fruitful. " According to the latter, La Poste has indeed actively pursued its transformation into a business of multiple activities for " reduce vulnerability In the face of the decline of the letter. The numbers speak for themselves. In 1991, mail accounted for 71% of total turnover. It represents only 28%. " In 2020, our goal is that traditional mail weighs less than 20% of our turnover "Said Philippe Wahl.

Services related to aging

The group is therefore determined to surf the growth waves that it has identified as strategic, such as e-commerce, which drives the parcels business, but also the "silver economy", ie the services linked to in old age, and, by extension, the field of health.

This theme concerns one of the Factor Proximity Services launched in 2017: "Watching over my parents". It generated 6,000 contracts. Management recognizes that it expected much more but relies on time for the product, still poorly known in its view, to gain more notoriety. All of these new factors services, from paper recycling to the passage of the Highway Code, generated 252 million euros in sales.

On the side of La Banque Postale, the company mentions a " confirmed business dynamics »With loans outstandings up nearly 10%, driven by outstanding legal persons. La Poste's 2020 plan to merge with Caisse des Dépôts (CDC), which is one of the aspects of the Pact Law under discussion in Parliament, should also enable banking to develop life insurance. .

Swiss Post reinvents itself with a large public finance hub

This merger between La Poste and the Caisse des Dépôts, which, according to the government, is to create a major public financial center, is considered to be of major importance by the postal company. According to Philippe Wahl, this project could bring 6 billion euros of additional equity to a group that has 12.

Fighting the digital divide

It would also promote several programs such as an action plan against the territorial and digital divide, linked to a new extension of the number of service houses to the public. La Poste is considering, among other things, mobile teams that could move in the villages to help residents in their digital approaches …

As for the La Poste network, it is now composed of 48% of traditional post offices and 52% of points of contact, either in communal premises or in partnership with a business. A solution often chosen by mayors in rural areas to support the attendance of merchants, paid by La Poste to ensure universal postal service missions.

Michel Waintrop

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