Magyar Posta announces pre-tax profit of Ft3 billion
State-owned Magyar Posta Rt has announced a pre-tax profit of Ft3 billion (D14.56 million) for 2003, Ft1 billion (D4.85 million) higher than expected and a huge improvement from a Ft9.08 billion (D44 million) loss suffered in 2002, according to CEO Pál Szabó.
He added that operating profits were Ft5 billion (D24.27 million) versus 2002’s operating loss of Ft7.05 billion (D34.22 million).
“The favorable result is a consequence of our restructuring and cost-saving programs,” said Szabó, but he also admitted that the redundancy of 1,000 employees (from the company’s 42,000 workforce) had also taken place.
He added that efficient services and price hikes, permitted by the state, were also partly responsible.
Based on company information in 1999, Magyar Posta had more than 44,000 employees and in that year had a profit of Ft4.02 billion (D19.51 million) on a turnover of Ft86.59 billion (D420.33 million).
In 2003 Magyar Posta’s revenue was Ft139.5 billion (D677.18 million), up 10.7percent year-on-year, while for 2004 it forecasted a similar profit to 2003 and a 9percent increase in revenues.
Szabó explained that in the foreseeable future Magyar Posta is to invest Ft9.5 billion (D46.11 million) to boost output at its national logistics center in Budaörs (just west of Budapest).
Magyar Posta has Ft9 billion (D43.68 million) earmarked for new development projects including outlets and information technology.
The company is also investing Ft2 billion (D9.7 million) to modernize its vehicles fleet.
Szabó said, “The goal is to bring the company in line with EU service requirements and gear up to the full deregulation of the postal services as from January 1, 2009.”
But despite the high profits, Magyar Posta, on March 16, will on average increase domestic tariffs by 10percent.
However, the service will reduce the price of its express, now dubbed “priority”, letter service.
Magyar Posta, previously the key insurance distributor for multinational companies such as Generali-Providencia (in which Magyar Posta holds a 10% stake), has turned into a market competitor by launching general and life insurance subsidiaries last year, under the names Magyar Posta Biztosító Rt and Magyar Posta Életbiztosító Rt.
The company also prints stamps, handles investments, sells treasury bonds and newspaper subscriptions and offers money transfer services.
Magyar Posta dominates the Hungarian postal market with a 75percent market share and has a registered capital of Ft45.51 billion (D220.92 million).
