E-commerce parcels help Czech Post avoid a loss

Czech Post has reported a “positive” first half of 2011, achieving a small profit despite declining volumes in the traditional letter segment. The Post reported first half revenues of 10,490m CZK ($615m USD) and a 674,000 CZK ($39,543 USD) profit during the first six months of its 2011 year.

The company said the performance confirmed its assumption that its postal service would continue to be successful in 2011 under its new management.

Petr Zatloukal, who replaced Marcela Hrda as director general and CEO of Czech Post at the end of May, said overall sales improved by 350m CZK year-on-year in Q2.

Noticeably, he said the improvement was thanks to the Post’s key growth area, e-commerce shipments, which have been balancing out the revenues lost by the electronic substitution of letter mail.

“It’s a solid result given the fact that the Post Office’s mail revenues are steadily declining,” he said of the results.

“I consider it very positive that the decline was compensated for primarily by revenues from the parcel services segment – which corresponds to the current market development dynamics.”

Zatloukal added: “In the case of online retail, the Post Office is increasing its market share significantly more quickly. It is now clear that we will meet our economic target this year.”

The improved second quarter for Czech Post followed on from a better first quarter than last year. In Q1, 2011, the Post saw its revenues grow by 93m CZK, while its operating expenses were cut by 111m CZK.

New management

Zatloukal, who was appointed director general by Czech interior minister Jan Kubice on May 25, was previously Czech Post’s chief executive officer for operations and logistics.

He had been running the company in an acting role after former director general Hrda stepped down at the beginning of April.

Before joining Czech Post’s management executive in 2008, Zatkoukal had experience including roles as a board member for telecommunications company O2 and as a senior official in the Interior Ministry.

Taking the new job, Zatloukal was given key tasks to prepare Czech Post for transformation into a publicly listed corporation and for the liberalisation of the Czech postal market.

Czech Post is currently in the middle of a modernisation process that will include the adoption of new uniforms by staff and the introduction of new services later this year.