Integer.pl Group - results for Q3 2013
Press release November 15th, 2013
Integer.pl Group - results for Q3 2013
Integer.pl Group - the second largest postal group in Poland, an independent financial and insurance operator and the owner of an international network of revolutionary InPost parcel machines – achieved in the Q3 2013, consolidated revenues from sales at the level of PLN 85,23 million, an increase of 26,5% comparing to the same period last year. The company reported PLN 7,27 million of consolidated net profit, which is above 98% more yoy.
Consolidated EBITDA in the Q3 2013 amounted to PLN 14,73 m, while EBIT operating profit PLN 9,25 m. After three quarters 2013, Integer.pl Group's revenues from sales amounted at PLN 239,71 million whereas the net profit reached PLN 17,33 million. The results reported in 2013 should be compared to the results in 2012 without one-off sale of the subsidiary Kolportaż Rzetelny Sp. z o.o. The value of the transaction amounted at PLN 52,75 m.
Comparison of the financial results without one-off transaction completed in 2012 (in thousands PLN)
The cost of the international expansion of easyPack by InPost machines have significantly affected the result of Integer.pl Group in the third quarter 2013. According to the Group, the revenues and profits from the country where the company started its activity, will appear after approximately 12 months. The monthly breakeven should be achieved at the end of 2014.
- The previous quarter was really fruitful in terms of our business, once again we have accelerated the process of installing Parcel lockers. We assumed that 1100 devices would be deployed in the Polish market by the end of the year, yet we have managed to do so as early as late October. The amazing pace of development was also bigger than our expectations. We have already started to develop the InPost parcel locker network in 15 new countries, and to acquire approximately 6,000 locations for another devices. Furthermore, We are also running parallel activities in order to enter the world's biggest markets - China and the United States. That’s the crucial information due to the incredible e-commerce boom in the global markets. Users of online stores love parcel lockers, as evidenced by the excellent results of one our partner - Eesti Post. As much as 50% parcels from the auction sites and e-shops are provided via our terminals used by the Estonian Post! We look forward for the winter and Christmas peak during the next quarter, when year after year we beat speed records – said Rafał Brzoska, CEO of the Integer.pl Group.
Key events in the Q3 2013:
- September 2013
- InPost began a cooperation with Stefczyk Finance – the operator of Kasy Stefczyka facilities, the largest savings and credit union in Poland. The partnership agreement is intended to lead to an increase of the InPost network with 400 new Customer Service Canters.
- InPost lockers are the winners of the ‘Ekomersy 201’ in the category ‘Best product / service supporting e-shop’. 39% e-votes and the jury enabled the company belonging to Integer.pl Group to beat the competition such as Sendit and Furgonetka.pl that were left behind.
- The Czech operator of automated postal terminals, Kouzelna Almara, started cooperation with IN TIME – the key player on the local courier market and InPost as strategic partner. The agreement provides the deployment of Inpost parcel machines in place of the KEBA terminals, that have been used by Kouzelna Almara so far.
- InPost Finanse won the tender to handle the remittances for the Kielce and Lodz KRUS funds. These agreement include the delivery of more than 40,000 cash benefits a month in both voivodeships and the estimated value of the delivered money transfers will amount to about PLN 1.2 billion.
- Integer.pl Group strengthened its internal structures due to the significant acceleration of the parcel locker network international expansion, and the dynamic development of the company in Poland.
- August 2013 - InPost Finanse introduced InPay24 services. New payment method for the e-commerce offers the lowest commission in the market in the amount of 1% of the transaction value.
In October 2013 Integer.pl won the international competition, ‘Postal Technology International Award’ in the ‘Retail Innovation of the Year’. The jury recognized the Modular parcel terminal of 5th Generation - a joint work of InPost and NCR for the 'Innovation of the Year'.
Furthermore, according to the ‘eCommerce 2013 report, published in the October 2013, in the latest ranking of the ‘logistics companies cooperating with e-sellers in 2012," InPost was on the fifth position in the general classification. More than 16% e-retailers declared that last year they offered to its customers a possibility to collect goods using the service of the largest private postal operator in Poland. This result is of almost 7 percentage points higher compared to 2011.
Number of deployed and operating machines at the end of Q3 2013
Between July and September 2013, Integer.pl Group continued its development on three key levels as the business owner:
- revolutionary InPost parcel machines
- the largest private post InPost
- an independent financial and insurance provider, InPost Finanse
InPost Parcel lockers
Currently, integer.pl Group continues the largest domestic and foreign expansion of InPost parcel machines in its history, including:
- 1100 InPost parcel lockers have been available in the Polish market since November 2013
- a significant expansion of services in foreign markets. About 2,750 parcel machines - available in various business models - will be operating worldwide by the end of 2013.
- an acquiring approximately 6,000 locations for the following devices. New parcel machines will be installed in 15 additional countries: France, Italy, Austria, Hungary, Turkey, Norway, Sweden, Finland, Denmark, the Netherlands, Switzerland, Romania and Bulgaria, Russia and Spain.
Over the next 4-5 years InPost parcel lockers will also appear in the Americas and in Asia. The company has started identifying locations for planned investment. In the United States, Integer.pl Group plans to launch 10,000 parcel lockers to the end of 2016 and in Asia the machines will be deployed in China - in Beijing and Shanghai. The entire project may eventually reach up to 1 billion euros.
InPost - the largest private post in Poland - consistently strengthening its position in the domestic market of postal and courier services:
- 1300 Customer Service Points are available for the clients.
- Plan for the end of 2013 assumes to have 2,000 Customer Service Points providing services to over 10 thousand for institutional clients, and 750 localities with offices for individual clients.
- In the Q3 2013 Integer.pl Group won 4 tenders for the services dedicated to the mass mail customers. The total value of them amounted to PLN 1.86m, while the number of shipments under contracts exceed 0.5 million units.
Some important dynamic changes that occurred after the partial deregulation of the postal market in Poland in January 2013, caused the appearance of the intensified consolidation trends. Integer.pl Group sees in that phenomenon a great opportunity for the development of the domestic market.
- We maintain our intentions to participate in the expected consolidation in the Polish postal and courier market. We believe that such trend is the best possible way to improve the quality of services. At the same time we are in talks with several potential partners because we are aware of the fact that such decisions require a detailed analysis of the market environment, added Rafał Brzoska.
InPost Finanse – an independent provider of financial and insurance services; the company enables massive cash withdrawals, sending money transfers and utility bills payment. In addition, the company offers credit services for mass customers, and provides support to perform operations on bank accounts.
InPost Finanse provides services relating to the provision of money transfers, regularly winning public tenders. The company delivers approximately 100 thousand benefits per month. The following public entities cooperate with independent financial service provider:
- Agricultural Social Insurance Fund (KRUS) branches in Warsaw, Lodz, Gdansk, Poznan, Białystok, Radom, Opole, and Kielce
- Town or City Councils in Tarnów, Bydgoszcz and Poznańskie Centrum Świadczeń in Poznan
- Municipal Social Welfare Centres in Łódź, Częstochowa, Tarnów, Bydgoszcz, Plock and numerous OPSs in Warsaw
InPost Finanse flagship services include electronic financial products: multi operator e-invoice and mobile payments, included in the portfolio of the company in 2010. InPost Finanse also offers a wide range of insurance services. Currently, the company cooperates on a long term basis with:
- Generali T.U. S.A. cooperation includes the sale of individual property insurance, NNW (accident insurance) and travel insurance, and a full range of communications products. Cooperation activities also include the sale of corporate insurance: property, liability and transportation.
- LINK4 cooperation includes the sale of motor insurance. Even in 2013, the cooperation between InPost Finanse Sp. z o.o. and LINK4 has been extended by the delivery of money transfers. It is also planned to start selling home insurance.
- Western Union in the field of sending and receiving money transfers and support services, such as payments and cash withdrawals.