Equipment sales grew 27 percent over prior year on higher sorter, inserter and print equipment placements due to a number of larger client installations in the quarter. Support services revenue declined as a result of a continuing trend in the shift from in-house mail production to third party service bureaus who tend to self-service, as well as reduced service revenue associated with the market exits. EBIT margin improved from prior year driven by service delivery cost management initiatives and lower sales and marketing costs.
Presort Services
The average revenue per piece of mail processed declined as a result of the rate change earlier this year and some recently signed lower-margin deals, impacting both revenue and EBIT margin. The segment experienced higher labor costs, which also impacted EBIT margin in the quarter.
Digital Commerce Solutions Group
| ($ millions) | Third Quarter | |||||||||||||||
| Revenue |
2016 |
2015 |
Y/Y
|
Y/Y
|
||||||||||||
| Software Solutions | $ | 89 | $ | 98 | (9 | %) | (6 | %) | ||||||||
| Global Ecommerce | 104 | 97 | 8 | % | 10 | % | ||||||||||
| Digital Commerce Total | $ | 193 | $ | 194 | (1 | %) | 2 | % | ||||||||
| EBIT | ||||||||||||||||
| Software Solutions | $ | 10 | $ | 15 | (29 | %) | ||||||||||
| Global Ecommerce | 4 | (1 | ) |
>100 |
% | |||||||||||
| Digital Commerce Total | $ | 15 | $ | 13 | 10 | % | ||||||||||
