Postal service PostNL booked better than expected results despite delivering fewer letters and parcels in the first quarter of 2023.

The company’s turnover fell by 3% to €783 mln, while its profits were down year-on-year from €16 mln to €4 mln. It said rising costs triggered by inflation, including wages, had put pressure on its business.

However, analysts had predicted a loss of €2 mln and an 8% drop in the number of items handled by PostNL, compared to an actual decline of €6.5 mln.

Financial markets responded positively to the figures, with the company’s share price rising by 9% to €1.65 in morning trading.

PostNL CEO Herna Verhagen said a higher than expected volume of parcels in March had boosted the company’s revenues and predicted an end-of-year turnover in the range of €70 mln to €100 mln, compared to €84 mln last year.

The company is undergoing a restructuring that will see up to 300 jobs disappear at its headquarters in The Hague, with the aim of saving €25 mln a year.