DGAP-News: Francotyp-Postalia Holding AG: Francotyp-Postalia Reports on 1st Quarter 2009

Francotyp-Postalia Holding AG / Quarter Results/Quarter Results

28.05.2009 

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- FP Group achieves revenues of 34.2 million euros
- Company reports EBITDA result of 5.3 million euros

Birkenwerder, 28th May 2009. Francotyp-Postalia Holding AG, a service
provider active worldwide in the outbound mail market, achieved revenue of
34.2 million euros for the first quarter of 2009. This compares with 36.8
million euros for the same period in 2008.

In its Mailroom segment, the FP Group faced an extremely difficult
environment. Yet despite this, the Company achieved revenue of 30.1 million
euros for the first three months of 2009, compared to 32.9 million euros in
the same period last year. This relatively moderate decline in revenue in
what is the most severe recession of the post-war era underlines the
inherent strength of the FP Group's business model. Two-thirds of revenue
is generated by repeat sales, mainly from service contracts covering over
267,000 franking machines currently in operation worldwide, all in regular
need of consumables, as well as from its rental business. Accounting for
20.8 million euros, after-sales business remained at the same level as in
Q1 2008.

The high level of after-sales business has proved a major stabilizing
factor, particularly in Germany, the Company's most important market. Here,
Mailroom sales for the first quarter of 2009 reached 11.3 million euros,
compared to 11.7 million euros for the same quarter of last year. The FP
Group has a market share of 44 percent, making it the clear leader in its
home market.

In its Mailstream segment, the FP Group experienced a slight improvement in
revenue in the first quarter of 2009, increasing to 4.1 million euros. This
compares with 3.9 million euros for the same period last year. In this
segment, the Company's subsidiary freesort accounted for 2.9 million euros,
while its subsidiary iab added a further 1.2 million euros. While business
with existing customers remained stable, freesort is reporting a noticeable
reluctance by customers to enter into new contacts, because of uncertainty
about the extent and length of the recession. 'The interest that customers
show remains high, because our solutions improve their overall cost
situation,' explained Andreas Drechsler of the FP Group's Management Board.
'But many potential customers are holding back and waiting for greater
clarity before investing. However, their interest shows that FP Group is
definitely on the right track following its strategy change to become a
provider of mail management services.'


 
Falling Costs in Research and Development and Personnel

The FP Group has now completed several areas of restructuring. Already in
the first quarter of 2009, streamlining its Research and Development
activities and administration have resulted in lower costs. Research and
Development costs fell by 0.6 million euros to 2.2 million euros, while
personnel expenses were down by 0.8 million euros to 13.6 million euros.
However, the decline in revenue during the first quarter of 2009 did have a
negative effect on results. EBITDA - earnings before interest, taxes,
depreciation and amortisation - came to 5.3 million euros in the first
quarter of 2009, compared to 6.8 million euros for the same period of the
previous year - in other words, down just 1.0 million on 2008. That means
that despite exceptionally difficult conditions, the FP Group still
achieved a double-digit profit margin. Consolidated net income remained
largely unchanged at -2.0 million euros, compared to -1.8 million euros for
the first quarter of 2008.


Company Planning Further Measures to Optimise Results

The global recession will determine operating conditions for the FP Group
during the quarters ahead, too. In particular, new business in both the
Mailroom and Mailstream segments is feeling the pinch. 'The positive
effects achieved through restructuring, the potential in our mail
management segment and the high level of after-sales business ensure that
the FP Group is well-prepared, even for a long period of recession,'
commented CFO Hans Szymanski. However, the uncertainty resulting from the
economic crisis makes it impossible to give an accurate forecast for the
whole financial year 2009. In view of the extremely difficult environment,
the Management Board is planning additional measures to further improve the
Company's results situation.


Further information available at: www.francotyp.com

Contact

Francotyp Postalia Holding AG
Investor Relations
Sabina Prüser
Tel: +49 (0)3303 525 410
Fax: +49 (0)3303 53707 410
E-mail:  s.prueser@francotyp.com


The FP Group in Brief

Francotyp-Postalia Holding AG (FP Group) is a leading manufacturer of
franking machines covering the whole value added chain in the outbound mail
market. Its products and services range from franking and inserting
machines to the collection, sorting and consolidation of outbound mail, as
well as electronic hybrid mail solutions offering 21st century mail
processing. With its headquarters in Birkenwerder near Berlin, the FP Group
offers businesses of all sizes individually tailored mail management
solutions. The FP Group has local branches in many industrialised countries
and currently holds over 9% of the worldwide franking machine market. With
a corporate history extending back over 85 years, today the FP Group is
profiting from the growing liberalisation of mail markets and the
increasing interest of businesses to delegate their outbound mail
operations to professional service providers. In financial 2008, the Group
employed around 1,100 people, with revenue of 142.4 million euros and an
EBITDA of 18.2 million euros.



Contact:
Francotyp-Postalia Holding AG
Media Relations 
Telefon:  +49 (0)3303 525 777
Telefax:  +49 (0)3303 53 70 77 77 
E-Mail:  pr@francotyp.com 



DGAP 28.05.2009 
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Language:     English
Issuer:       Francotyp-Postalia Holding AG
              Triftweg 21-26
              16547 Birkenwerder
              Deutschland
Phone:        +49 (0)3303 525 777
Fax:          +49 (0)3303 53 70 77 77
E-mail:       ir@francotyp.com
Internet:     www.francotyp.com
ISIN:         DE000FPH9000
WKN:          FPH900
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Stuttgart, München, Düsseldorf
 
End of News                                     DGAP News-Service
 
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