Russian Post moves into the black with profit in 2008

The company expects a net profit of EUR 11.59 million in 2008.

Russian Post is set to end years of losses with a small profit in 2008, according to CEO Andrej Kazmin.

The company expects a net profit of EUR 11.59 million in 2008 against a net loss of RUB 4 billion EUR 115.86 million in 2007 thanks to its three-year programme to reduce losses and to modernise infrastructure and services, he announced at the recent UBS investment conference in Moscow.

The state-owned postal operator anticipates revenues of RUB 78.6 billion (EUR 2.28 billion) in 2008 compared to RUB 69.7 billion (EUR 2.02 billion) in 2007. According to forecasts, revenues from financial services are likely to grow by 25 pct to RUB 39.5 billion (EUR 1.14 billion) while mail revenues are estimated to increase by 29 pct to RUB 4.2 billion (EUR 121.65 million) in 2008 compared to 2007.

The CEO, a former bank executive, attributes the progress largely to the start of the implementation of the company’s modernisation programme this year. It includes the reduction of expenses through more savings and cost optimisation, improving management systems, reducing risks, controlling the quality of the services provided, increasing efficiency of business processes and developing new and profitable services.

Kazmin emphasized, however, that the state-owned national postal operator is currently in a difficult financial situation despite its growing range of services, more than 40,000 postal offices countrywide and its developed logistics network. Unresolved problems from the last few decades had resulted in a lack of investment in basic equipment and technology. Moreover, increasing postal prices remains difficult, Kazmin explained. “Postal tariffs change with a greater delay than the tariffs for air and rail,” he commented.

In a next step, Russian Post plans to renew its material and technical base including the reconstruction and renovation of its postal offices as well as to purchase a new fleet along with rail transport. Furthermore, also on the top of the agenda are the development of the company’s IT infrastructure and the integrated automation of production processes, the modernisation of customer service infrastructure and financial services in particular, and additional professional training.

Relevant Directory Listings

Listing image

ZEBRA

Zebra Technologies is an innovator at the edge of the enterprise with solutions and partners that enable businesses to gain a performance edge. Zebra’s products, software, services, analytics and solutions are used to intelligently connect people, assets and data to help our customers in a […]

Find out more

Other Directory Listings

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What's the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



MER Magazine


The Mail & Express Review (MER) Magazine is our quarterly print publication. Packed with original content and thought-provoking features, MER is a must-read for those who want the inside track on the industry.

 

News Archive

Pin It on Pinterest

Post & Parcel
PHLPost to open more Next Day Delivery hubs this month
IPC: Online purchases from China are on the rise again, driven primarily by Temu
Austrian Post: This is an impressive confirmation of our international market presence
Ukrposhta joins forces with Temu to ensure Ukrainians have access to the items they need
New Executive Vice President to “drive Geopost’s ambitions in the strategic out-of-home segment”
PHLPost to open more Next Day Delivery hubs this month
IPC: Online purchases from China are on the rise again, driven primarily by Temu
Austrian Post: This is an impressive confirmation of our international market presence
Ukrposhta joins forces with Temu to ensure Ukrainians have access to the items they need
New Executive Vice President to “drive Geopost’s ambitions in the strategic out-of-home segment”
1
2
3
4
5
Listing image
Listing image
Listing image
Listing image
Applications for the World Post & Parcel Awards are open
UPS opens new Dutch “super hub” in Eindhoven
Russian Post to become a key logistics partner of Cainiao in Russia
Unite will push for general election over Brexit
Share This