DHL 1998 Annual Report Download - page 33

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Group revenue – LETTER SERVICES
in DM mil.
for 1998
29
divisionLETTER SERVICES
Rising revenue in growing markets
The ongoing growth seen in the physical and hybrid letter service market in
recent years continued through 1998. Despite increasingly tough competi-
tion, our Letter Service division was able to up its revenue in this area by a
total of 4.3 per cent for the year. This positive performance was buoyed by
our solid core business in the traditional letter service field, which firmly
held its own at a very high level despite a growing amount of competition,
generating a four-per cent increase in revenue over 1997.
The market’s positive overall development in 1998 owed much to the
above-average growth in direct marketing – which set another record with
its 9.5-per cent growth in 1998. Postal direct marketing media provided the
driving force behind this rapid growth by generating an 11-per cent increase
in revenue with both established and new products. An entirely new mar-
ket segment was developed with partially addressed products to serve the
medium price range of the direct mail market.
The Press Distribution field was able to slightly increase both sales and rev-
enue in the fiercely competitive press items market by 1.8 and four per cent
respectively. Marked growth in the customer magazine field was primarily
responsible for this rise.
New service and problem-solving products in value-added areas that center
on postal services have developed into a booming additional business for
the Letter Services division, with revenue climbing by 59 per cent last year
and double-digit growth rates forecast for the coming years.
Following several years of diminishing annual revenues, Deutsche Post’s
stamp collector market entered an upswing, with revenue increasing
sharply to DM 138.2 million thanks to the introduction of new products
developed for specific target groups.
The only provider to offer a complete portfolio of physical and hybrid letter
service products, Deutsche Post combines trustworthiness, reliability
and nationwide availability with innovation and operational efficiency at
an internationally unparalleled level.
Letter services – Communication with a future
Division revenue
LETTER
SERVICES
19,621
Group
revenue
28,689
* ) Excluding subsidiaries
* * ) Due to reorganization, growth rates calculated on a
comparable basis
Revenue – LETTER SERVICES*
in DM mil.
1995 1996 1997 1998
1.8% 2.8 % 3.0 %* *
18,872 19,210 19,757 19,295
20,000
17,500
15,000
12,500
10,000
Sales – LETTER SERVICES*
in units mil.
1995 1996 1997 1998
2.6 % 2.4 % 4.3 %* *
19,053 19,556 20,023 20,036
20,000
19,500
19,000
18,500
18,000
* ) Excluding subsidiaries
* * ) Due to reorganization, growth rates calculated on a
comparable basis