Hong Kong postal service posts first profit in 6 years
The Sars outbreak has helped deliver Hongkong Post its first profit in six years.
Postmaster-General Allan Chiang Yam-wang said more online purchases and an increase in deliveries during the outbreak contributed to the service reaping a $17 million profit last financial year.
New revenue-raising measures and job cuts were also major factors in the turnaround.
The post office recorded revenue of $3.53 billion in 2003-04, an increase of $23 million from $3.51 billion in the previous year.
At the same time, it reduced expenditure by $47 million, from $3.56 billion in 2002-03 to $3.51 billion last year.
Mr Chiang said the Sars outbreak had boosted the use of postal services.
“Besides goods deliveries for online sales, there was a sudden surge in the demand for our speed-post services to deliver goods such as masks during the Sars outbreak,” he said.
Mr Chiang was optimistic about the financial prospects for Hongkong Post as online purchases and commercial business increased with the economic recovery. Postal mail is forecast to grow 3 per cent this financial year, despite an expected drop in the amount of personal mail sent due to people’s preference for sending e-mail.
Mr Chiang said his organisation was also exploring new service areas to expand its business operations.
On Monday, its money remittance services will be expanded from six countries to 200.
Hongkong Post has also entered a business partnership with bird’s nest and cosmetics retailers, to provide delivery services for their online sales from early next month.
It has formed a business partnership with one of the major e-commerce companies, providing a platform for small- and medium-sized enterprises.
Mr Chiang added that one of the major banks was also planning to use the post office’s e-certificate to protect its clients from internet fraud. He said details would soon be announced.
Cost-cutting measures last year included a 2 per cent reduction in permanent staff, from 5,676 in 2002-03 to 5,563.
