Mail up, but NZ Post profit slips 28%
Anthrax scares failed to upset the mail market last year, with New Zealand Post reporting an increase in mail volumes of 1.3 per cent for the six months to December 31.
However, the increase in letters did not boost the performance, as NZ Post reported an after-tax profit of $16 million, down 28% on the previous first-half.
The result to December takes into account operating expenses of $5.7m for setting up Kiwibank.
Chief executive Elmar Toime said the increased letter volumes, due mainly to local body elections, was the highlight of the period.
“Letter volumes moved against recent trends during the period — a pleasing outcome in light of the anticipated downturn in mail volumes and the disruption caused to international mail networks from anthrax-related incidents in mid-October,” Mr Toime said.
Operating revenue for the six months was $506.2m compared with $520.1m in the previous first- half. Mr Toime said that NZ Post’s cost containment strategies continued to be successfully managed across all business areas.
“At $475.6m, operating expenditure was at the same level as the previous year but substantially improved on budgeted targets.
“If the current performance is maintained, NZ Post will meet its annual targets.”
