(Adds analyst, spokesman comments)
By Ludwig Burger and Marilyn Gerlach
FRANKFURT Nov 15 Deutsche Post, the
world's No.1 postal and logistics company, has asked regulators
to approve an increases in the price of stamps that would raise
the cost of sending a standard letter in its home market to 0.60
euros ($0.81) from 0.58.
The move could raise the group's pretax profit by around 50
million euros a year, estimated DZ Bank analyst Dirk Schlamp.
The group's Mail unit has been hit by a decline in letter
volumes, advertising expenditures among mail-order customers and
a fall in subscriptions for newspapers and magazines.
Mail managed to eke out a 3.6 percent increase in revenue
in the first nine months of the year, thanks to growth in
e-commerce business and an increase in prices of some stamps
A spokesman for the company said the Federal Network Agency
would make a decision within two weeks and once approved, the
price hikes would take effect next year. He declined to provide
its impact on revenue.
The spokesman said the new prices were based on the Agency's
new pricing formula that allowed a potential average increase of
1.6 percent for all types of letters for the next five years.
Deutsche Post said it had asked the Agency on Friday to
approve price increases of stamps for letters sent to
destinations within Germany and for those destined outside the
The proposal affects domestic letters weighing up to 20
gramms, with prices from 0.58 euros to be raised to 0.60 euros,
and those destined outside of Germany, weighing 1,000 to 2,000
gramms, from 16.90 euros to 17.00 euros.
($1 = 0.7430 euros)
(Editing by Christoph Steitz and David Holmes)