Integer.pl Group - excellent results after the first quarter of 2012
Cracow, May 16th 2012
Integer.pl Group – excellent results after the first quarter of 2012
Increase in sales: 31,7% and net profit: 26,2%
Integer.pl Group, the leading Polish postal group, an independent financial operator and the provider of innovative postal and courier solutions, and e-commerce services, demonstrated 75.71 m PLN in consolidated revenues after the first quarter of 2012, which indicates an increase by 32% in comparison with the analogous period of 2011. Net profit amounted to 6.09m PLN and is higher by 26,25% comparing to the one achieved in the previous year. The consolidated revenue per share (of Integer.pl) reached the level of 1.03 PLN.
Net profitability of the Integer.pl Group reached 8.05% in the first quarter of 2012. Simultaneously, Group has generated 6.22 million PLN of operating profit in the first quarter of 2012. Consolidated EBITDA amounted to 10.49 million PLN and increased by 2.47% in comparison with the analogous period of the previous year.
In February 2012 Integer.pl, with a score of 43.5%, came in the ninth place out of the companies with the highest rates of return in 2011 in the ranking of companies listed on the WSE, according to Gazeta Parkiet.
"The first quarter of 2012 was definitely successful. Good financial results of Integer.pl Group and its strong position in the capital market are the best examples of our development. We do our best to maintain the current growth. All our forces are currently redirected to develop easyPack by InPost services. This is the most prospective part of the postal and courier sector, which is why we intend to take advantage of the moment while rapid growth of e-commerce industry in Poland and international markets. This does not mean that easyPack by InPost machines are our last word. It's just only a part of our business – we also actively participate in the consolidation of the Polish market of unaddressed mail service, so our interest in this sector should increase significantly in subsequent years, bringing the Integer.pl Group further increase both at the level of profits, and profitability, "- declares Rafał Brzoska, CEO of the Integer.pl Group.
In the first quarter of 2012, Integer.pl Group has mainly focused on the international expansion of easyPack by In Post machines - apart from the expansion within the postal and the financial sector and activity concerning the consolidation of the distribution of unaddressed mail in Poland.
• The Contract with Nightline Couriers – the leader company on the courier market in Ireland, for the production, delivery, and installation of 100 easyPack by InPost up to the end of 2012 (the first stage of the contract). The contract value is estimated at 2.5 million euros / February 2012 /
• The Contract for the production, delivery, and installation of 29 easyPack machines in Latvia as part of the third stage of the Contract with Eesti Post /January 2012 /
As a result of some extraterritorial activities, Integer.pl Group in just 12 months (as of March 2012) has signed investment agreements with nine international partners which means that easyPack by InPost machines will be accessible – except Poland - from Estonia, Latvia and Lithuania, Russia, Cyprus and Spain, to Ireland, Saudi Arabia and Chile.
Continued international expansion of easyPack by InPost machines and the chain development on the Polish territory are the strategic objectives of Integer.pl Group. In 2012 - with the contract with of PineBridge Investments - the global private equity fund - the company will double the Polish easyPack by InPost machines network. The people of almost all European countries will have been able to use about 16 000 machines to send and collect parcels by the end of 2016. The investment amounting to 108 million EUR (453 million PLN) will be subject to approval by the UOKiK [Office of Competition and Customer Protection]. Within 2 years’ time, Integer.pl Group will raise capital and equity of 58 million EUR (243 million PLN) and PineBridge Investments will invest over 50 million EUR (210 million PLN). The EasyPack project will increase the availability of the easyPack by InPost machines in the another 12 European countries and the CIS, and its aim is to use the significant potential of the rapidly growing e-commerce sector in the world. By the end of 2016 easyPack by InPost shall have a network of up to 16,000 machines.
Integer.pl Group is planning to spend up from 40 to 80 million PLN on the development of easyPack by InPost machines service to the end of 2012, and the nearly five-year international expansion project is valued at 350 million EUR. The share of non-standard services (including electronic) will be at least 30% of Integer.pl Group revenue in the coming years. Through strategic investments – implemented on international markets – Integer.pl Group revenue from the foreign projects will reach over the next few years the level of 20-40 million EUR per year.
At the same time up to the end of 2012 Integer.pl Group plans to open 300 new branch offices in Poland. Simultaneously, the number of places where its services are provided will increase to 550 for individual customers, and 8000 for the institutional.
Moreover, Integer.pl Group's financial results in subsequent quarters in 2012 will be influenced by the implementation of postal automated terminals on the Polish and European market, replacing small postal offices. Integer.pl Group has already invested 5 million PLN in the preparation of the prototype. The company estimates that the market price of the equipment - for sale to external partners - will fluctuate within the limits of 150 - 200 thousand PLN for one machine.
In the first quarter of 2012 Integer.pl Group also intensified its actions in the unaddressed mail sector and at the same time was actively involved in the consolidation of that market. In May 2012 the Group sold the newly formed company, Kolportaż Rzetelny to Austrian company Post acht Beteiligungs. The effects of those activities can be seen in the Integer.pl Group financial results in the first half of 2012.
In the first quarter of 2012 winning public tenders, the Integer.pl Group through the intermediary of InPost Finanse, has also started the cooperation with:
• OPS Białołęka - the estimated value of the benefits in the scope of the agreement amounts to approximately PLN 280 million and covers 93 thousand postal orders per year.
• KRUS (Agricultural Social Insurance Fund) Warsaw - the estimated value of the benefits in the scope of the agreement amounts to approximately PLN 280 million and covers 93 thousand postal orders per year. The contract has been signed for a period of three years’ time.
• Town Hall of Tarnów – the estimated value of the benefits in the scope of the agreement amounts to approximately PLN 1 million and covers 300 money postal orders per month.
• MOPR Poznań (Social Welfare Centre) – the estimated value of the benefits in the scope of the agreement amounts to approximately PLN 2,6 million and covers 730 money postal orders per month
In the first quarter of 2012, the Group also continued cooperation with SMS Kredyt Holding SA, including the dynamic growth of ProfesKasa SA, acting on the micropayments market, where InPost Finanse is a shareholder.
Integer.pl Group plans for 2012-2013
• Increase in the market share of postal and courier services to 18-20% by the end of 2012
• A systematic increase in the number of letters delivered from 220-250 million of consignments in 2012 up to 280-300 million letters in 2013
• The development and expansion of Power Post / email hybrid clients’ portfolio, the service combining the traditional postal services with e-mail functionality
• Increasing the range of postal activities throughout Poland
• Implementation of the automated postal terminals onto the Polish and European markets
• A consistent building of a market leading position in Polish and international e-commerce sector, including the development of easyPack by Inpost service
- Launch of 16 thousand machines in 12 European countries and the CIS countries – reaching the position of international leader in terms of easyPack services
- The management of the Polish largest and the world’s second largest easyPack machines network in 2012
• Implementation of InPost Finanse contracts with public institutions
• Development of ProfesKasa S.A. acting on the micropayments market, where InPost Finanse is a shareholder.
• Gaining at least 300 agency contracts or 500 payment reception offices for ProfesKasa S.A. by InPost Finanse by the end of September 2012
• Development and customer acquisition of mobile payments and e-invoice services (InPost Finanse)
• Implementation of InPost Finanse contracts with public institutions
• Increasing the availability of financial services in key voivodeships and the conclusion of new strategic contracts, including the public and local government entities (InPost Finanse)
• Strengthening the market leading position in distribution of unaddressed mail, and expanding business activities in Ukraine (distribution and easyPack by InPost service)
• Active participation in the consolidation of Polish market of unaddressed mail