Post Danmark not delivering

Postman Pat maybe headed for pension

Feb 20, 2015

State-owned provider of postal services, Post Danmark, didn't make a profit last year, Chairman of the Board Jens Moberg told Jyllands-Posten.

Known as PostNord, the postal company is owned by and operates in both Sweden and Denmark.

A source tells Jyllands-Posten that while PostNord's accounts show an operating profit, the Danish part of the business has a deficit of 200 million kroner.

The exact number will be revealed in March when PostDanmark publishes their annual report.

Moberg tells Jyllands-Posten the reason the Danish business isn't making money is due to the 'digitalisation'.

Snail mail fail

The amount of letters sent in Denmark in 2014 fell by 12 percent compared to 2013. During the fourth quarter snail mail was down 17 percent.

With packages taking up a larger share of the postal market, PostDanmark will have to compete against services such as GLS, DHL and UPS, many of whom have so-called parcel shops located around the country. Some even allow for pickups in local shops, making it easier for customers to receive their mail outside of post office opening hours.

READ MORE: Post Danmark laying off hundreds of employees

According to Jyllands-Posten, head of communication for PostDanmark, Morten O. Nielsen contends that distribution of packages is one of the most competitive markets worldwide which is reflected prices being squeezed globally.

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