South Africa Post Office makes trading profit, but net loss
Defying all predictions the SA Post Office (SAPO) made a trading profit of R27 million this year, the postal services group said today.
This was remarkable not only because it was a turnaround from losses of hundreds of millions of rands in the last few years, but also because postal services internationally were in decline, Maanda Manyatshe, the chief executive, told reporters in Johannesburg.
However, although trading operations turned a profit, overall the group incurred a net loss of R74.7 million. This was due to the cost of post-retirement medical benefits, Manyatshe said. Manyatshe attributed the trading profit to the diversification of the services offered and a stricter control of operating expenses.
12 000 less staff than four years ago
He admitted that since the Post Office was privatised four years ago it had reduced its staff from 30 000 to 18 000. “In the future there will not be such an aggressive attack on numbers,” he promised. In a society where traditional postal services were becoming less and less important, the Post Office planned to use its “superb” infrastructure to provide a range of services, said Manyatshe.
These include banking, career and internet services. The group hoped to continue to improve its financial position. “We want to make more than R100 million profit next year.” – Sapa
