New Zealand Post annual profit up
State-owned mail agency New Zealand Post announced a 24% rise in after-tax profit to $27.1 million for the year ended June 30.
Operating revenue rose by 1.9% to $976.9 million compared with the previous year, expenses held steady at $922.8 million, and NZ Post paid a total dividend of $16.2 million to the Government, up from $13.1 million the previous year.
NZ Post was facing a trend of declining domestic mail volumes — by about 1% annually — but had seen a growth in business mail volumes.
The growth in business mail volumes was driven largely by retail, finance and utility companies using mail as a communications tool with customers.
International post volumes also fell, by 6%, although NZ Post said international mail revenue increased.
NZ Post chairman Jim Bolger said in a statement today that the company’s strong financial result allowed it to inject a further $40 million in its banking arm Kiwibank, and invest in its postal systems and its supporting infrastructure.
“It is one of the few postal organisations in the world that is being sustained by its core business, a particularly remarkable achievement given that it operates in an open deregulated market,” Mr Bolger said.
Service delivery — the independent measure of mail delivered on time — was 95.6 per cent for the year ending 30 June, one of the best results for service delivery in the world but below last year’s figure of 96.1 per cent, chief executive John Allen said.
“Our service performance remains world class, however it is no longer world-leading. We will continue to build a service culture that lifts on-time delivery of mail towards 100%,” he said.
On Tuesday Kiwibank reported an improved annual net loss of $8 million for the year to June, compared with its $10.2 million loss the previous year when it was launched in February 2002.
The bank said it was on track to becoming profitable some time in the next financial year.
