The revenue decline rate for the quarter was an improvement compared to the second quarter, which was impacted by the enterprise business platform cut-over. Equipment sales declined 1 percent compared to prior year, returning to levels similar to the pre-go-live of the new platform. Recurring revenue streams declined at a high single-digit rate largely driven by lower financing-related fees and supplies revenues. EBIT margin was lower than prior year due to the decline in high margin recurring revenue streams.
International Mailing
Excluding the effects from currency and market exits, revenue declined at a low single-digit rate and equipment sales were flat to prior year. Equipment sales benefited from growth most notably in France, Italy and Japan, but were mostly offset by a decline in the UK. Recurring revenue streams declined largely driven by supplies and rental revenues. EBIT margin was relatively flat versus the prior year. The decline in high-margin recurring revenue streams was offset by lower operating expenses.
Enterprise Business Solutions Group
| ($ millions) | Third Quarter | ||||||||||||||||||
| Revenue |
2016 |
2015 |
Y/Y
|
Y/Y
|
Y/Y Ex Currency
|
||||||||||||||
| Production Mail | $ | 106 | $ | 102 | 5 | % | 5 | % | 11 | % | |||||||||
| Presort Services | 114 | 116 | (2 | %) | (2 | %) | (2 | %) | |||||||||||
| Enterprise Business Total | $ | 220 | $ | 218 | 1 | % | 2 | % | 4 | % | |||||||||
| EBIT | |||||||||||||||||||
| Production Mail | $ | 16 | $ | 12 | 27 | % | |||||||||||||
| Presort Services | 19 | 26 | (26 | %) | |||||||||||||||
| Enterprise Business Total | $ | 35 | $ | 38 | (9 | %) | |||||||||||||
| * Excluding $0.5 million related to the impacts of currency and $5.0 million related to the divested revenues resulting from the exit of direct operations in Mexico, South Africa and five markets in Asia |
