UPDATE 1-Austrian Post profit declines, outlook subdued

* Q2 EBIT 27.6 mln eur vs Reuters poll avg 28 mln eur

* Says expects mail volumes to continue declining in H2

(Adds details)

VIENNA, Aug 13 (Reuters) - Austrian state-owned mail operator Oesterreichische Post (POST.VI) reported a 14 percent decline in second quarter operating profit, in line with market expectations, and said the worst was not over for it yet.

Earnings before interest and tax (EBIT) dropped to 27.6 million euros ($38.99 million) as revenue fell 4.8 percent. Analysts polled by Reuters had expected 28 million euros in EBIT. [ID:nL6172212]

Austrian Post reiterated its bleak outlook from May, when it scrapped its guidance for stable revenue and profit and said that the economic crisis would weigh more on letter, parcel and direct mail volumes than previously expected.

"Mail volumes are expected to continue declining in the second half of 2009," Austrian Post said in a statement. "It is anticipated that the current state of affairs will persist and that the downward trend has probably not yet bottomed out."

Austrian Post's main listed European peers Deutsche Post (DPWGn.DE) and TNT TNT.AS gave similarly gloomy outlooks in their second quarter results. [ID:nLR113766] [ID:nLL430449]

Shares in Austrian Post have declined by 12 percent this year so far, closing at 20.70 euros on Wednesday. (Reporting by Boris Groendahl; Editing by Hans Peters)