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UPDATE 1-Deutsche Post seeks stamp price rise from 2014
November 15, 2013 / 9:36 AM / in 4 years

UPDATE 1-Deutsche Post seeks stamp price rise from 2014

(Adds analyst, spokesman comments)

By Ludwig Burger and Marilyn Gerlach

FRANKFURT, Nov 15 (Reuters) - 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 from January.

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 country.

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)

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