DHL 1997 Annual Report Download - page 10

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Business volume continues to grow
Net revenue rose by DM 434 million to DM 27,136 million.
As in past years, our Letter Mail division continued to generate the largest
share of total revenue. Revenue rose by 2.9 percent to DM 19,757 mil-
lion. Despite growing competition from electronic communications, the
Letter Mail segment booked DM 13,630 million in revenue for the year,
a gratifying 2.2 percent increase. The fast-growing segment “Infopost”
(printed matter and direct mail) recorded above-average growth once
again in 1997 with revenue rising by 5.5 percent to DM 4,635 million.
Revenue in the “Pressepost” (periodicals and newspapers shipped at
reduced rates) segment grew by 0.7 percent to DM 1,492 million.
We managed to stabilize revenue in the Freight Mail division by keeping
prices unchanged. Business generated by new customers was an impor-
tant factor in this accomplishment. However, we expect revenue – for us
at an unsatisfactory level – to improve as consumer demand picks up
again. The International Post division also reported stagnating revenue
as a result of pricing pressure and declining volume of mail from
private customers.
7
Management Report
Growing competition in non-restricted busi-
ness segments and stagnating sales in sectors
with intensive needs for postal services, such
as the mail-order industry, put a strain on
business environment for Deutsche Post during
1997. In spite of this, we were able to increase
net revenue and improve our results once
again. Profit on ordinary activities, positive
since 1994, rose for the third year in a row. As
a result, we have made good progress toward
achieving our goal of generating an adequate
return.
Deutsche Post in 1997:
improved results, progress
toward long-term goals
Breakdown of total turnover
by division