((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Adds shares to paragraph 2, comments on outlook to paragraphs 1 and 6, acquisition costs to paragraph 10) by Olivier Cherfan
Belgian postal operator Bpost BPOST.BR missed first-quarter profit expectations on Friday and said its full-year outlook was “on hold” as it hopes to conclude negotiations on the delivery of French-language newspapers by the end of May.
Bpost shares were down 2.3% at 1137 GMT.
The company has been put under pressure by speculation that the country’s government may choose other companies for the distribution of newspapers and periodicals.
Last week, Bpost signed a delivery agreement with Flemish newspaper publishers, covering around 75% of the volumes it currently delivers.
“We are doing everything we can to soon do the same with French-speaking publishers,” CEO Chris Peeters said in a statement, adding on a call with analysts that he hoped for a decision by the end of the month.
Bpost, which in March expected stable operating income in 2024 but did not give a profit forecast, said it would update those targets once negotiations were complete.
Underlying mail volumes in Belgium, Bpost’s main market, fell 6.7% during the quarter, while parcel volumes increased 2.9%.
Bpost – which also provides shipping services to e-commerce businesses in North America, Europe and Asia – reported a 20% drop in first-quarter adjusted operating profit compared to a year earlier , at 62.1 million euros ($66.6 million).
This result is lower than the consensus of 69.7 million euros established by analysts.
Bpost said profit was hit by costs of 7.7 million euros linked to the acquisition of French logistics company Staci, while difficult market conditions in North America weighed on its business logistics in this region.
Adjusted operating profit at its E-Logistics North America division fell 41.3% to 8.8 million euros due to lower parcel volumes, below expectations of 10.6 million euros.
Last month, the American parcel transport group UPS
UPS.N reported better-than-expected profits on the website as cost reductions offset continued weak demand for package delivery.
(1 dollar = 0.9319 euros)