German business continues to be part of PostNL
PostNL has also stated that in order to fully realise the growth potential, the company has decided to sell the last mile operations in Frankfurt and buy out the minority shareholder of Postcon National. Both transactions are subject to the approval from the relevant authorities.
PostNL expects to improve Postcon’s profitability by growing its market share through expanding its customer base, improve pricing and implement further cost reductions. PostNL expects Postcon to be break-even in 2016 and to contribute to its cash profitability in the years thereafter.
The company also announced the decision is not expected to impact the 2016 outlook for PostNL’s underlying cash operating income. The ambition for 2020 will be adjusted to between €285m – €355m, compared to €265m – €335m excluding the German activities.
In May 2015, PostNL announced a strategic review of the international activities. The strategic review of the activities in the United Kingdom resulted at the end of July in an agreement on the main conditions of a management buyout of Whistl, that was completed on 23rd October 2015. On 2 October 2015, PostNL announced the decision to continue to invest in the development of its Italian operations.