May 22 (SeeNews) - The long-term goal of logistic and postal services provider Austrian Post is to have a fully-integrated network in Southeast Europe (SEE), where it expects to post over 10% growth in the parcel business in the coming years, the company's chief operating officer said.
"What we see in the region is very strong organic growth - depending on the countries, between 10 and 20% annually," Peter Umundum told SeeNews on the sidelines of an event organised by the Vienna Economic Forum in Sofia last week.
"We expect also 10% and more in the parcel business in the future, and we are also interested in inorganic growth through acquisitions," he added.
The company has been developing its network in the region for the past 15 years. At the moment, it has fully-owned subsidiaries in Croatia, Serbia, Bosnia and Herzegovina and Montenegro and holds a majority stake in Bulgaria's M&BM. All of its units are members of European logistics network Eurodis.
Turkey is of particular interest for Austrian Post, as the company is currently in talks to become the sole owner of a local operator, Umundum also said.
In 2013, Austrian Post bought a 25% stake in Turkish local parcel service provider Aras Kargo from local private equity firm Is Girisim Sermayesi Yatirim Ortakligi and Aras Kargo's founders, the Aras family, for a total of 50 million euro ($58.9 million), with a call option for the remainder.
"We bought these call options and at the moment there are negotiations how the deal should take place," the Austrian Post COO added.
However, the company is also contemplating acquisitions in other countries in the region, especially in places where it does not have its own network.
It all depends on the available options, the price that is being asked and the strategic fit, Umundum said.
Commenting on a planned concentration between Bulgarian express delivery company Speedy [BUL:0SP] and its local peer Rapido Express and Logistics for up to 12 million euro, Umundum said it opens up opportunities for Austrian Post.
"It is a very strong concentration for the market leader and I think the market needs alternatives. I think with M&BN we can provide alternatives and I think his is important for the whole market."
Austrian Post reported 2.3% rise in revenue to 1.939 billion euro in 2017, as the mail revenue decline of 2.1% was offset by parcel growth of 17.7%. Its earnings before interest and taxes (EBIT) increased by 2.7% to 207.8 million euro.
With respect to geographical segments, Austrian Post generated 91.8% of its group revenue in Austria in the 2017 financial year, whereas Southeast and Eastern Europe accounted for 5.7% and Germany for 2.5%, the company said in its annual financial report.
($=0.8478 euro)