Mail volumes rise as Russian Post records 15% sales increase

Russian Post has seen a 15% growth in its revenues during the first nine months of 2011, compared to the same period last year. The Post made RUB 87.5bn ($2.84bn USD) in revenues during its first three quarters, with a RUB 4.29bn ($139m USD) operating income, a tenfold increase on net income during the same period in 2010.

The particularly sharp rise in operating income was the result of changes to social service tariffs.

However, Russian Post did see good growth in its volumes, with letter volumes increasing by 2%, parcel volumes growing by 11% and express delivery shipments increasing by 29.5%.

Overall operating costs increased 16% thanks to increased transportation costs including higher fuel costs.

Efforts to improve service efficiency saw productivity per worker increasing 22% year-on-year, although a 16% wage inflation saw labour costs rising 7% year-on-year to RUB 56.5bn ($1.83bn USD) for the three quarters. Capital expenditure in the network increased by 15% to RUB 12bn ($390m USD).

Russian Post said its postal service revenues grew by 17% compared to the first three quarters of 2010, including a 23% increase in parcel revenues and 32% increase in express revenues.

Financial services brought in 16% more sales than the same period last year, thanks to a 25% increase in pension and benefit fees, as well as increased acceptance of utility payments, and a 6% increase in sale of financial products.

Russian Post, which has debts of RUB 12.55bn ($407m USD) at the moment, is now expecting a 650m ($21m USD) net profit at the end of the year, similar to that seen in 2010.