Integer.pl Group - financial results following Q3 2014
- Integer.pl Group noted consolidated revenue of PLN 436,73 million following Q3 2014, which represents an increase of 82%
- Consolidated EBITDA amounted to PLN 21,66 million
- Net profit attributable to parent company shareholders reached PLN 9,49 million
- The cost of the continued international expansion of the InPost automated parcel machine network by EasyPack significantly affected results for the Integer.pl Group
November 14 2014: Integer.pl Group – the owner of InPost, which operates the world’s largest network of automated parcel machines and is the largest private postal group in Poland – achieved consolidated revenue of PLN 436,73 million following the third quarter of 2014, which represents an increase of 82%. The company reported PLN 21,66 million of consolidated EBITDA and the net profit attributable to parent company shareholders reached PLN 9,49 million.
In Q3 2014, the Integer.pl Group has continued its dynamic expansion of the InPost automated parcel machine (APM) network – increasing its range in key European e-commerce markets, including: Great Britain and Italy. The company has also intensified its activity on other continents and has commenced installation of InPost APMs in: Asia, the Middle East and North America.
InPost automated parcel machines (APMs) have consolidated their position in the Polish post and parcel market. Most recently, through a partnership with Allegro – Poland’s largest e-commerce platform. Thanks to this cooperation every Allegro e-retailer can offer two special InPost delivery options: Allegro InPost for parcels and Allegro InPost for registered letters. These options provide the lowest-priced delivery options available via Allegro for both parcels and letters with the additional benefit of free returns.
The Integer.pl Group has also worked intensively on technical improvements for its automated parcel machines – now each APM allow customers to pay on collection by card or COD (cash on delivery). Moreover, over half of the APMs also accept payments from contactless cards. Nor did the company neglect the rapidly developing demand for services to return products – customers, can now do this free of charge at InPost APMs (via www.szybkiezwroty.pl).
Rafal Brzoska, CEO of the Integer.pl Group stated, “The expansion of the InPost automated parcel machine (APM) network is progressing in line with our strategy. Moreover, our development has exceeded our expectations – we now assume that break-even will be achieved even earlier. In Great Britain we already have over 1,000 APMs, but we have raised our target to 2,000 operational APMs by the end of 2015. We will soon achieve the same high level of penetration on other key markets, including: Italy, France and Malaysia. Despite being the world leader for APMs, we are ceaselessly working to improve our technology and establish further partnerships with e-commerce giants, such as Italian Banzai, British MetaPack or Polish Allegro”.
In Q3 2014 the Integer.pl Group announced the successful registration of new issue shares and finalization of the primary offering conducted in Q2 2014 indirectly as a private placement among Polish and foreign qualified investors. As a result of the transaction, the company raised approximately PLN 222m (EUR 53m) in new capital. The funds are to be used for the expansion of the InPost APM network in Europe, Asia and North America.
Key events in the Q3 2014:
- September 2014
• InPost’s achievements were recognised for a second consecutive year at the industry’s leading international event – at Post-Expo 2014 InPost won ‘Supplier of the Year’ for its dynamic worldwide expansion, partnerships with local postal companies and contribution to sector innovation.
• InPost announced a partnership with Repsol, owner of a petrol station network covering 29 countries, for the installation of InPost parcel machines in Italy. The agreement will extend the unique InPost solution to additional cities in Italy and strengthen the existing network in other major Italian cities. In total up to 1,000 InPost automated parcel machines will be deployed in Italy by the end of 2015.
- August 2014
• InPost signed an agreement with the MetaPack Group, the leading provider of e-commerce technology for delivery services. As a result, InPost’s automated parcel delivery service will be brought onto MetaPack’s Dynamic Delivery Options platform.
• The InPost automated parcel machine network continued its Asian expansion with key partners in Malaysia. Skynet, a leading national courier company, will provide logistic services and another key partner, the rapidly developing ISIS Logistic, will serve e-stores and e-commerce platforms. The first stage of the project will deploy 140 APMs across the Klang Valley by the end of 2014. The national network is expected to reach 350 terminals by 2016.
- July 2014
• On 24 July 2014 Integer.pl made its debut on the Catalyst market – an alternative transaction platform of the Warsaw Stock Exchange for trading and authorising corporate and local government bonds. Integer.pl SA issued 30,000 bearer bonds on the Alternative Trading System as series INT0617. The nominal value of bonds amounted to PLN 30 million. The issuing corporate bonds (and stocks) will be used for EasyPack’s project expansion.
• InPost signed an agreement and started the cooperation with online delivery experts P4D to provide a flexible delivery option for consumers and businesses.
• InPost installed an automated parcel machine at Victoria Coach Station, one of the busiest transport hubs in the UK. The new machine will offer flexible parcel collection and dispatch services to the 12 million passengers who travel through the station every year and are available for use by any retailer or seller.
In 2014, Integer.pl Group, as the business owner, continued its development on three key levels:
• the revolutionary InPost automated parcel machines
• the largest private post office in Poland- InPost
• an independent financial and insurance provider- InPost Finance
InPost automated parcel machines
Currently, Integer.pl Group continues the largest domestic and foreign expansion of InPost’s automated parcel machines (APMs) in its history, including:
• 1,100 InPost APMs made available on the Polish market since November 2013.
• A significant expansion of services in foreign markets- more than 3,500 APMs are available worldwide in various business models.
• The acquisition of approximately 6,000 new locations for further APMs.
In the next 3-4 years InPost APMs will also appear in the Americas and Asia. The company has already started identifying locations for the planned investment.
Key achievements in the international expansion of InPost automated parcel machines
- GREAT BRITAIN – InPost’s automated parcel machine (APM) network in the UK currently exceeds 1,000 terminals. InPost has:
• finalised an agreement with London’s transport authority, Transport for London (TfL), as a result of which has already:
• installed an InPost APM at Buckhurst Hill Station on the Central line,
• installed an APM at Victoria Coach Station- one of the busiest transport hubs in the UK.
• started to cooperate with VisualSoft – a British company specialising in a full range of e-commerce services,
• signed an agreement and started the cooperation with the British supermarket network Morrisons- the owner of 500 shops in the United Kingdom,
• signed a contract and started the cooperation with P4D – one of a few official resellers working in partnership with the largest courier networks in the world.
• signed an agreement and started the cooperation with MetaPack Group – the leading provider of e-commerce technology for delivery services
By the end of 2015, the InPost APM network in UK is set to comprise 2,000 machines.
- ITALY – InPost intends to launch 1,000 APMs in Italy by the end of 2015. The APMs will be launched in the northern and central regions of the country, and some major cities, including Rome, Milan and Turin. Eventually, the APMs will be available in most Italian provinces. To reach this target InPost has:
• started to cooperate with TNT Express Italy - one of the best global courier companies,
• signed an agreement with Carrefour Italy – one of the biggest retailers in this part of Europe,
• has signed agreements with Repsol Italty and TotalErg – the leading oil and petrol companies in Italy.
- FRANCE – InPost intends to launch 2,500 automated parcel machines within 2 years. Colis-Privé is the confirmed logistics partner.
- SPAIN – installation of InPost automated parcel machines is under way; partnership agreements, including logistics, locations and e-commerce are being signed.
- SCANDINAVIA – installation of InPost automated parcel machines is under way; partnership agreements, including logistics, locations and e-commerce are being signed.
- CENTRAL AND EASTERN EUROPE:
• RUSSIA – further dynamic develop of the automated parcel machine network under the "Qiwi Post" brand
• UKRAINE – currently an automated parcel machine network, under the POST24 brand, is available for customers in Kiev. Expansion in other regions has been suspended due to the nationwide crisis.
• CZECH REPUBLIC - 100 InPost automated parcel machines already installed
• SLOVAKIA – 50 InPost automated parcel machines already installed
• Other countries - installation of InPost automated parcel machines is under way; partnership agreements, including logistics, locations and e-commerce are being signed.
• Malaysia - in Q3 2014 Integer.pl Group announced that the InPost automated parcel machine (APM) network will continue its Asian expansion with key partners. Skynet, a leading national courier company, will provide logistic services and another key partner, the rapidly developing ISIS Logistic, will serve e-stores and e-commerce platforms. The rollout of InPost APMs will commence with installations in Kuala Lumpur at PETRONAS Mesra stations and at Tesco hypermarkets. The first stage will deploy 140 APMs across the Klang Valley by the end of 2014. The national network is expected to reach 350 APMs by 2016.
• Other countries – installation of InPost automated parcel machines is under way; partnership agreements, including logistics, locations and e-commerce are being signed.
- MIDDLE EAST – installation of InPost automated parcel machines (APMs) is under way; partnership agreements, including logistics, locations and e-commerce are being signed. In the first half of 2014 Integer.pl Group started to cooperate with Aramex, the leading global logistics and transportation solutions provider in the Middle East. The new partnership will create the first network of APMs in the Middle East North Africa (MENA) region. The official launch of InPost APM services in the region is at the end of 2014.
- NORTH AMERICA – installation of InPost automated parcel machines is under way; partnership agreements, including logistics, locations and e-commerce are being signed.
- AUSTRALIA – InPost has signed an agreement with Australia Post for service and delivery of automated parcel machines (APMs). It is the next step in a 2-year cooperation. From August 2014 InPost Australia provides services directly for the national operator. The ultimate goal is to join Australian terminals with other InPost APMs globally to provide cross-border deliveries.
InPost - the largest private post office in Poland is consistently consolidating its position on the Polish domestic market for postal and courier services:
• 8,300 Customer Service Points are available for clients across Poland.
• The company won the public tender for delivering parcels for KRUS (Agricultural Social Insurance Fund). The 2-year contract, starts on 1 January 2015 and is worth over PLN 22 million.
• InPost SA plans to actively participate in the consolidation of the Polish postal market. In 2013 the Antimonopoly Office approved the takeover of Inforsys S.A. and PGP SA. However, no final decisions have been made and Integer.pl Group has not committed to any further moves at this stage of the negotiations.
InPost Finance is an independent provider of financial and insurance services, enabling cash withdrawals, money transfers and payment of utility bills.
InPost Finance offers its services as a Polish Payment Institution, a status awarded by the KNF (Polish Financial Supervision Authority). As a result the company has started opening cashpoints in Polish Tax Offices.
InPost Finance provides services related to the provision of money transfers, regularly winning public tenders. The company delivers approximately 100,000 benefits payments per month. The following public entities cooperate with independent financial service providers: Agricultural Social Insurance Fund (KRUS), Town or City Councils, Municipal Social Welfare Centres
InPost Finance also offers:
• the option to both send and receive money transfers and support services (in cooperation with Western Union)
• electronic financial products: multi operator e-invoices and mobile payments
• wide range of insurance services, including: vehicle, property and corporate insurance. Currently, the company cooperates on a long-term basis with: Generali T.U., LINK4, Liberty Direct, Towarzystwo Ubezpieczeń Wzajemnych (mutual insurance company).