UPU cross-border tariff changes hit MaltaPost profits
MaltaPost has blamed changes in international mail tariffs made by the Universal Postal Union as it recorded a 32.3% drop in pre-tax profits over the past 12 months.
The designated postal operator for Malta said changes in the framework of inter-operator fees for international mail ended up costing it EUR 1.7m, as profits fell to EUR 2.06m for the year up to the end of September 2012.
Otherwise, the company said it achieved “satisfactory” results without compromising its quality and levels of service.
MaltaPost saw its turnover slip 1.3% during the year, to EUR 21.12m as the continuing decline in traditional mail volumes was partially offset by growth in the packets business, helped by ecommerce.
The higher cross-border tariffs for international mail meant the company’s overall expenses grew 2.6% during the year, to EUR 19.12m.
MaltaPost said looking ahead, it was expecting that changes to its pricing controls by Malta’s regulator should help to maintain the universal postal service, despite postal rates in Malta remaining the lowest in the European Union.
Postal rates went up last month at MaltaPost, jumping particularly sharply for bulk mail and registered mail.
New revenue sources
Next month sees the liberalisation of Malta’s postal market, which will see MaltaPost facing the prospect of competitors providing services in the area previously reserved for its monopoly – letters under 50g in weight. The rest of the Maltese postal market is already open to competition.
MaltaPost said as it contends with additional competition affecting its already-declining letters business, it is now in the process of looking into potential new sources of revenues.
One of these is a plan to enter the insurance market, likely through a new subsidiary.
The company also plans to increase its investment in areas like document management and hybrid mail.
“Both the Board of Directors as well as the management strongly believe that such services will ensure that MaltaPost maintains a leading edge in the postal industry while still continuing to provide a universal postal service and offer satisfactory benefits to all stakeholders,” the company said.
