Birkenwerder, 2012-08-30

Francotyp-Postalia Holding AG, the first multi-channel provider for mail communication, today published its half-yearly report for 2012 in which it confirms the preliminary figures it published on 23 August 2012.

The revenue of the FP Group increased from EUR 80.9 million in the previous year to EUR 82.7 million in the first six months of the current year. Recurring revenue from the Mail Services and Software business and from service agreements, leasing, teleporto and the sale of consumables for approximately 250,000 franking machines worldwide increased significantly to EUR 65.8 million compared to a figure of EUR 62.5 million for the prior-year period. Mainly consolidation revenue improved by EUR 2.6 million to EUR 19.5 million.

The cost of materials amounted to EUR 35.4 million in the first half of 2012 after EUR 31.9 million in the prior-year period. In particular, the cost of purchased services increased due to the higher level of consolidated revenue. On a half-yearly basis, staff costs declined to EUR 28.4 million after EUR 34.4 million in the same period of the previous year, in which provisions were still recognised for the restructuring of production. Depreciation, amortisation and impairment losses also fell from EUR 7.4 million in the previous year to EUR 4.6 million in the first half of 2012.

EBITDA (earnings before interest, tax, depreciation and amortisation) increased to EUR 8.6 million as against EUR 3.9 million in the previous year. Before taxes, the FP Group generated a profit of EUR 1.7 million compared to a loss of EUR 4.2 million in the same period of the previous year, meaning that it increased all key revenue and earnings figures in the first half of 2012. However, two time-limited challenges meant that the company was unable to meet its targets in full: the temporary delays in the process and supply chain in production and the temporary difficulties affecting the German sales organisation, which resulted in weaker franking machine business.

As a result of these developments, the company adjusted its guidance for the year as a whole on 23 August 2012. The FP Group is now forecasting revenue of at least EUR 161 million, EBITDA of EUR 19-21 million and EBIT of 8-10 million.

Hans Szymanski, CEO & CFO of Francotyp-Postalia Holding AG: “The FP Group has now overcome the temporary challenges facing it; production is in a steady state and the German sales organisation has reported rising sales figures for franking machines since July. The new, innovative PostBase franking system is enjoying a good response on the market. The same applies for our De-Mail solution, where we have already succeeded in attracting the first customers. In light of these developments and our return to profitability in the first half of 2012, I am confident that the FP Group can further increase its earnings strength in the medium term.”