PostMaster estimates 10 percent increase in turnover to EUR 11 mln, plans EUR 1 mln investment

Romanian PostMaster, the largest private distributor of unaddressed mail and operator of private postal services, reported a net profit of RON 2.2 million (EUR 492 million) in 2011 and expects a similar result this year, while the turnover is expected to gain 10 percent to EUR 11 million in 2012.

The company plans to invest EUR 1 million for acquiring transportation vehicles, software and sorting equipment.

The distribution market for unaddressed mail (marketing and informative catalogs) is estimated to reach 800 million sent advertising materials and PostMaster’s market share in this segment exceeds 60 percent. Companies using this instrument are active in the retail, FMCG, financials services and DIY sectors.

The Romanian unaddressed mail market is polarized and split between PostMaster that controls 95 percent of the market and Inbox Marketing, a subsidiary of Mediapost Hit Mail, where the French Post has a stake. The Austrian Post bought a 26 percent stake in Post Master last year, with the option to acquire the remaining 74 percent stake within two years.

Romania will liberalize the postal services market starting 2013, which is currently dominated by the state-owned Romanian Post.

“We are ready to compete with the Romanian Post on approximately 80% of the territory, covering 95 percent of the population, ensuring more efficiency deliveries at competitive prices,” said Mihai Preotescu, managing partner at PostMaster. PostMaster has 47 distribution offices across Romania and employs 1900 people.

The postal services market in Romania is split between the distribution under 50 grams, where the Romanian Post has a monopoly and distribution over 50 grams, where there are specialized companies and courier firms.

The Romanian Post controls the market for regular mail and receipt confirmation mail. It stood at RON 560 million in 2010 and should expand by 5 percent this year. The telecom regulator ANCOM recently fined several companies for breaching the monopoly of the Romanian Post but this issue hasn’t been solved year, according to Mihai Balaj, managing partner at PostMaster.

“From our estimates, up to a volume of 3 to 4 mailed envelopes are already delivered through private postal operators that breach this monopoly,” explained Balaj. “If this trend continues and the authority (ANCOM) will not decide to really supervise and monitor this market, the Romanian Post may lose up to 50 percent in volume until market liberalization, in 2013.