DHL 2002 Annual Report Download - page 57

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56
Declining advertising spending impacts mail market
Despite the weak economy, the German market for mail communication was stable
in 2002 with revenue of €7.8 billion. Our market share is still solid at 94.3%, although
competition increased in individual segments. Our competitors were able to increase
market share in two areas in particular: local mail delivery by third parties (local post)
and the transport of mail not covered by the exclusive license (exceeding 200g). The
market shares for individual segments are shown in the diagram below.
A harmonized mail market does not currently exist in Europe; deregulation is
occurring in individual European countries in different ways and at differing speeds.
We are thus leveraging our opportunities to access interesting European mail markets.
Our first steps in this direction have led us to the UK and the Netherlands – two
countries that have already opened their mail markets, which are among Europe’s five
largest, to foreign competitors.
The German advertising market also suffered in the face of the weak economy
in 2002. This market recorded a forecast volume of €40.5 billion. The volume of
the narrower definition of the direct marketing segment, the segment consisting of
advertising mail, telemarketing and e-marketing that is relevant to our business,
remained close to its prior-year level with a volume of €13.3 billion; our share in this
market totals 15.7%.
The weak economy also caused decreases in circulation, particularly in the spe-
cialist financial press, which in turn led to an overall shrinking of the market for press
product distribution. This market recorded a forecast volume of 20.1 billion items in
the year under review, compared with approximately 21 billion items in the previous
year. We have an 11.0% share of this highly fragmented market.
Revenue remains stable
At €11,666 million, revenue in the MAIL Corporate Division remained at the prior-
year level (€11,707 million) in fiscal year 2002. Revenue per business day remained
at €47.0 million, while revenue per employee rose from €85,400 to €89,400.
Revenue in the Mail Communication Business Division remained stable at a
high level, totaling €7,280 million after €7,367 million in the previous year. Thanks to
our increased focus on our business customers, sales in this segment even increased
slightly by 0.8% despite the weak economic development. This increase is shown in
the second table on page 57.
Market share held by Mail Communication’s competitors in Germany
in %
2.7
3.5
1.1 1.1
0.6 0.8 0.6 0.3
Local post Letters>200g Re-mailingSelf-delivery
2001
2002
Source: Deutsche Post AG