Estonian postal operator Omniva, rebranded from Eesti Post last year, increased revenue by 7 per
cent to €59.9 million in 2014, with e-commerce related services being the main growth driver, and
made a net profit of €1.3 million.
The group’s logistics services grew by 15 per cent while revenues from advertisement
services rose by 11 per cent and periodical services increased by 3 per cent. In 2014, Omniva
processed over 11 million sales and purchases invoices. The percentage of e-invoices from all
invoices grew to 40 per cent.
“The revenue growth was most boosted by the increase in logistics services volumes, with the
expansion of the parcel terminal network in the Baltic states playing a crucial part including the
increase in the related services and e-commerce volumes,” Omniva’s chairman of the board Aavo
Kärmas said.
Last year, the company significantly expanded its parcel terminal network in Estonia and
Latvia resulting in 189 parcel machines in total, of which 98 are located in Estonia. The parcel
volumes processed via the terminals increased by 38 per cent in Estonia, by 198 per cent in Latvia
and by 177 per cent in Lithuania in 2014. “These numbers show that the customers have also embraced
Omniva’s new solutions,” Kärmas said.
In contrast to the booming parcels business, the letter volumes are steadily decreasing,
Omniva confirmed. In 2014, the domestic mail business revenues decreased by 8 per cent. According
to Kärmas, the ongoing trend on the market is that the business correspondence is moving towards
electronic channels. “Somewhat surprisingly, the incoming (19 per cent) and outgoing (23 per cent)
international mail volumes grew, where we might also see the effects of e-commerce,” Kärmas
commented.
According to the company chief, 2014 marks a turning point in the company’s history where
international letters and small parcels made up a larger part of turnover than domestic shipments. “
It can be said that the national postal company became an international logistics company during
the last year,” said Kärmas.
Small items arriving to Estonia from abroad come mainly from China, the United Kingdom,
Finland, Germany, Hong Kong and the United States. Shipment volumes from China, for instance,
increased by 70 per cent. The main destination countries from Estonia are Finland, Germany, Norway,
Sweden and the United States.
“We estimate an increase in both domestic and international e-commerce in 2015, therefore we
will be further developing the logistics solutions that will enable e-retailers to provide
comfortable and fast goods delivery possibilities to the consumers,” Kärmas added.
The company said the introduction of the new international brand Omniva in June 2014 had
also been a turnaround point in its history. The introduction of the new trademark is related to
the internationalisation of the company and the domestic market’s expansion from Estonia to Latvia
and Lithuania. Services being provided under the former logistics and e-services trademarks like
Post 24 parcel machines, ELS courier service, Kirjakeskus and eArvekeskus converged under the
Omniva trademark. Eesti Post is retaining its original name for domestic mail operations in
Estonia.
The group’s Latvian subsidiary SIA Omniva recorded a revenue growth of 240 per cent in 2014
while the Lithuanian subsidiary UAB Omniva LT’s sales revenue increased by 7 per cent compared to
2013. Volumes generated through parcel terminals increased significantly both in Latvia and
Lithuania last year. “A major goal in 2015 is the forceful expansion in Latvia and Lithuania and
also introducing new services in the markets there,” Omniva concluded.
