The trends that have a strong impact on us include the dramatic transformation of the postal industry, the increase in e-commerce, the growing power of consumers, the period of slow economic growth in Europe and the challenging situation in Russia.
The overall economic situation remained weak in Finland and the exchange rate of the ruble declined substantially. Furthermore, there was intense competition in Scandinavia. The volumes of addressed letter items continued to decline and newspaper and magazine volumes decreased as well.
The market situation in logistics and retail is weak. Transport volumes in groupage logistics declined and the volume of heavy traffic has continued to decrease in Finland for nearly three consecutive years.
On the other hand, the increase in the overall demand for parcels and in e-commerce as well as the growth of the cloud services offered by OpusCapita offer new opportunities for us.
The Finnish Government issued a postal delivery license to three of Posti’s competitors. The postal delivery licenses that have been issued allow for competition in addressed deliveries, but competition did not yet have an impact on us in 2014. In our view, issuing the postal licenses with one-day delivery obligation reduces Posti’s opportunities to profitably provide services that fall under the universal service obligation in accordance with the Finnish Postal Act. For this reason, the decision increases the need for efficiency measures.