Integer.pl Group - good results after IIIQ 2012 and high growth potential in 2013
Cracow, 15th November, 2012
Integer.pl Group – good results after IIIQ 2012 and high growth potential in 2013
Integer.pl Group, the leading Polish postal group, a provider of innovative postal-courier solutions and e-commerce services maintains its high rate of growth. Despite the multi-million dollars investments, after three quarters of 2012, the Group recorded 49.69m PLN of net profit, which indicates an increase of 206% compared to the analogous period of the previous year. Consolidated revenues amounted to 199.54m PLN and are higher by 15% compared to the results achieved in the previous year.
As many as 67.75% of revenues, i.e. 135.2m PLN was recorded in the postal and easyPack services by the Integer.pl Group. The investment related to local and international expansion of easyPack by Inpost has a significant impact on these results.
In the third quarter of 2012, Integer.pl Group net profitability reached the level of 24.9%. Consolidated EBIDTA amounted to 68.4m PLN, which indicates an increase of 107%, while its operating profit amounted to 55.29m PLN, which indicates an increase of 144% compared to the analogous period of the previous year. Consolidated earnings per share increased by 205%, from 2.74 PLN to 8.37 PLN.
After three quarters of 2012, Integer.pl Group reported 67.38m PLN of consolidated revenue. The company made a net profit of PLN 3.67m, with net profitability of 5.4%. Consolidated EBIDTA amounted to PLN 7.95 million.
„The first three quarters of 2012 were a particularly active business period for the Integer.pl Group. The international expansion based on the development of the easyPack by InPost service within the EasyPack project was connected with huge investments. Nevertheless, we assume that our operations onto the foreign markets will generate a significant volume for the next few months, which will also be reflected in the Group financial results. In terms of technology, easyPacks by InPost are profitable form the start. However, in case of EasyPack project, the break-even is expected in 2013. This means, in 2014 the Group will start to earn on that investment as well”, says Rafał Brzoska, the CEO of Integer.pl Group.
The four-year international expansion project - carried out jointly with PineBridge Investments, a global private equity fund - is valued at approximately 300 million euros. By 2012, the Integer.pl Group plans to spend PLN 60m on the development of EASYPACK service, and in 2013 the investments shall reach a level of PLN 320m for that purpose. Through strategic investments - carried out onto international markets - Integer.pl Group revenue will reach the level of EUR 20-40 million per year within the next few years.
Mr. Brzoska adds: “The key issue is that each quarter of 2013 may bring some huge growth prospects for the Integer.pl Group. On the one hand, the profits from the EasyPack project, on the other hand, our growing share in the postal market.We assume that the liberalization of the postal market for the mail items weighing less than 50g will increase the InPost sales from 25% to 80%, after January 1st, 2013. We also expect some new contracts with the entities that have also been waiting for liberalization of the postal sector. Thus, we expect an increase to 16-17% at the end of 2012 from 14% in 2011, and even to 22% in 2013, despite the 7% overall decline in the postal market. The postal terminals presented to foreign operators in September shall be our main advantage. We are strongly convinced that our project based on the automated postal points will revolutionize global postal markets, such as easyPack by InPost before.”
Automated postal points have the potential to replace traditional offices. The only and pioneering Postal terminal combines the functionality of easyPack, letterbox and ATM. The project is implemented jointly with NCR, a global leader in ATMs. The first machines will be deployed in Estonia, Chile, Saudi Arabia and Slovakia within the pilotage project. Ultimately, the services offered by Integer.pl Group with the use of automated postal terminals can be available at about 700 thousand. post offices in the world, out of which - due to the currently applicable business model - as much as half of it is unprofitable.
According to Mr. Brzoska,”it is enough to gain 5% of that market for the Integer.pl Group. It means the implementation of 35 thousand machines, which soon be reflected in our financial results. The project will be developed together with the easyPacks. Currently, the product is ready, in 6 moths the pilotage process will end and then we expect some commercial contracts”.
Integer.pl Group development strategy for 2012-2013
- Increase the shares in the postal and courier services market to 16-17% by the end of 2012 and 22% in 2013
- Regular increase of delivered letters to the threshold of 280-300 m of letters in 2013
- Commercial start of the service based on automated postal terminals
- Increase of postal activities range in Poland
o By the end of 2013 Integer.pl Group intends to launch 500 new Customer Service Points. Moreover, the InPost network is estimated to cover 1600 offices within a year, which allows to deliver the correspondence for individuals in 750 locations, and for institutional customers in 10000 ones
o The development and expansion of Power Post / email hybrid clients’ portfolio, the service combining the traditional postal services with e-mail functionality
- A consistent building of a market leading position in Polish and international e-commerce sector, including the development of easyPack by InPost service:
o By the end of 2012, the company plans to deploy 1000 easyPack machines, including 300 in Poland, 375 in the UK, 200 in Russia, 50 in Ukraine, and over 100 in Czech Republic and Slovakia.
o Launch of 16 thousand machine throughout Europe by 2016 - reaching the position of international leader in terms of easyPack services
- 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)
- Development of ProfesKasa S.A. acting on the micropayments market, where InPost Finanse is a shareholder
- Development and customer acquisition of mobile payments and e-invoice services (InPost Finanse)
- Development of business activities in Ukraine based on Integer.ua company in terms of distribution of unaddressed mail and easyPack by InPost service