DHL 1999 Annual Report Download - page 44

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Solid growth
Our MAIL corporate division is roughly comprised of
the Mail Communication and Direct Marketing busi-
ness segments. The improved economy was one of
several factors generating an increase in the traditional
mail business in 1999. Communication in a number of
liberalized areas such as the telecommunications,
energy and financial services industries increased in
frequency and scale, a development that also helped
boost volumes for the year. Our Direct Marketing
business segment is seeing strong growth as a result of
the trend toward directly approaching sub-groups on
an individualized basis. Compared to traditional adver-
tising media,the direct approach offers greater efficiency.
Defending our market leadership
Building on its market leadership in the transport and
distribution of paper-bound communication,the MAIL
corporate division is redefining itself as a provider of
integrated solutions, offering customers a comprehen-
sive range of products and services. Special attention is
paid to tapping additional potential by growing our
systems and solutions businesses among existing cus-
tomers and new target groups,particularly in the small-
business customer segment. In terms of its strategic
orientation, the MAIL corporate division regards itself
as a mediator,manager and fiduciary of the content and
media-related communications needs of senders and
recipients.
Business development – Revenue growth on all
fronts
Our mail business was able to hold its own once again in
1999 as a robust growth market competing with primar-
ily electronic media in the marketplace. Backed by
innovative products and solutions, Deutsche Post suc-
cessfully dealt with a difficult environment that has
been further aggravated by the licensing of more than
500 rival postal services in Germany.
We increased our operating profit before amortization
of goodwill by 6.9 percent to EUR 1,008.7 million last
year. This positive performance was driven on the one
hand by the introduction of cost-reduction measures.
On the other hand, we were able to increase external
revenue by 2.9 percent to EUR 10.2 billion and volume
by approximately five percent to some 21 billion items
as a result of an increase in marketing and sales
activities. Income generated by ancillary activities such
as collection from the customers’premises, post office
box and forwarding address notification services devel-
oped extremely well, posting 93-percent growth.
Mail
47
The letter: prepared for the future
Corporate Division
“Deutsche Post is the only provider in Germany offering a product portfolio that covers all physical and
hybrid forms of mail that also couples trust,reliability and nationwide service with innovation and
operational efficiency at the top of the international quality scale.”
in EUR bn, 1999
Group revenue
22.4
Revenue
generated by the
MAIL corporate
division 10.2
External Revenue Group
MAIL corporate division