TNT’s new strategy appears to be paying dividends after its second quarter (Q2) revenues rose 6.2 per cent year on year (YOY) to 1.75 billion euros.

The express delivery firm says underlying revenue growth for the quarter was 4.1 per cent, which was driven by the continued growth of revenues from small medium-sized enterprises (SMEs).Operating income was 19 million euros, compared with three million euros in the second quarter of 2014.

TNT’s International Europe segment revenues increased 5.1 per cent YOY to 719 million euros, despite lower fuel surcharges. The revenue increase was driven by continued growth from SMEs and improvement of on-time delivery performance.

The International Asia, Middle East and Africa revenues rose 16.3 per cent in the second quarter to €257 million, because of stronger local currencies. The segment saw strong growth from SMEs in Q2. In the domestics segment, revenues increased 4 per cent year-on-year to €655 million.

During Q2, TNT says it continued to invest in sorting machinery, vehicles and IT. Next to investing in Liege, the company is completing new sorting facilities in Madrid, Eindhoven (Netherlands), Swindon (UK), Brisbane and Melbourne (both Australia), opening later this year.

TNT chief executive officer, Tex Gunning, says: “TNT’s turnaround is progressing well under our Outlook strategy. Service levels and customer satisfaction scores further improved. We are achieving good growth in the SME customer segment after years of decline.” Gunning expects 2015 will be a “transition” year in terms of bottom-line performance, as it continues to invest in the transforming the business.

“As for the macro economic backdrop, we have experienced some positive developments in Western Europe, but we remain cautious given the economic volatility in China, Brazil, Australia and Greece.During the quarter, FedEx announced its intention to acquire TNT. The management team believes this is a very positive development for all our stakeholders.”