Feb 24 (Reuters) - Dutch postal operator PostNL

issued a subdued 2025 forecast for its two main

divisions on Monday, citing a challenging market and

unpredictable client concentration due to changing consumer

behaviour.

Its earlier plea for government support was rejected by the

Dutch Ministry of Economic Affairs on Friday, intensifying the

company's challenges after it already warned on 2024 profit in

January.

"The financial performance strongly underlines that the

current business model is no longer sustainable," CEO Herna

Verhagen said in a statement.

Traditional postal services in Europe, some of which are

facing financial pressures, are struggling to keep up with

competition from other parcel locker firms such as Poland's

InPost and Amazon ( AMZN ).

PostNL, which delivers parcels and letters across the

Netherlands, Belgium and Luxembourg, said it expected a volume

decline of 8% to 10% at its Dutch mail segment in 2025, while

aiming to achieve cost savings of between 40 million and 45

million euros ($42 million and $47 million).

The postal company sees growth of between 1% and 3% at its

parcel segment this year, lower than the assumed growth of 4% to

5% in the Dutch e-commerce market, it said.

For 2024, it reported an operating profit (EBIT) of 53

million euros, confirming the preliminary reading it gave in

January.

It proposed a dividend of 0.07 euros per share for the year.

($1 = 0.9513 euros)