Posten Norge – which made a preliminary pre-tax profit for 2016 of NOK 230m, up NOK 79m from 2015 – has reported that it “is continuing to focus on measures to improve profitability”. The company’s operating revenues were down NOK 302m to NOK 24,772m, and EBITE was down NOK 41m to NOK 645m.

Much like its fellow Scandinavian postal operator PostNord (which announced its 2016 results last week), Posten Norge said that its biggest challenge was “the digitalisation of society”.

According to Posten Norge: “Digitalisation is leading to a sharp and escalating fall in the volume of addressed letters, which declined by a record-high 10.9 per cent in Norway in 2016. In the mail segment, the revenue fell by MNOK 230, but the adjusted result (EBITE) was only MNOK 16 weaker than in 2015. This is due to sharp cost cuts, mainly related to mail no longer being delivered on Saturdays.”

These “cost cuts” are an important feature of Posten Norge’s ongoing strategy.

Tone Wille, CEO of Posten Norge, commented: “The Group was prepared for a demanding year in 2016 and has implemented a number of cost-cutting measures. These have contributed to a result that is on a level with that for 2015. The decline in logistics revenue and great need to adapt the mail operations are putting a lot of pressure on our profitability. We have initiated strategy work to improve our profitability and focus our operations.”

On the upside, Wille said increasing digitalisation presents new opportunities as well as challenges – and Posten Norge to determined to tap into these markets.

“Increased e-commerce provides new business opportunities as well as growth in the volumes of parcels, freight and home deliveries. We have all it takes to succeed here,” claimed Wille.

Posten Norge also reported that its digital mailbox, Digipost, experienced “huge growth” in 2016. There were around 1.4 million users of the service at the end of 2016, compared to 600,000 at the end of 2015.