New Zealand Post Posts Profit
New Zealand Post announced a better than expected profit today of $22.4 million for the half year to 31 December 2000.
The unaudited net profit after tax result was $1.3 million more than the same period the year before and was a complete turnaround from a deficit of $3.8 million for the transitional quarter to June 2000.
New Zealand Post’s chief executive, Elmar Toime, said the improved profit reflected the company’s focus on efficiency in an environment of lower mail volumes, and the ongoing pursuit of global business opportunities.
This included the acquisition in July 2000 of Australian courier company Couriers Please and continued growth from New Zealand Post’s international subsidiary, Transend, formerly New Zealand Post International Limited, through its offshore consultancy work and increased sales of postal sorting equipment in Europe.
The company said the operating revenue of $520.1 million was up eight per cent on the same period last year, while operating expenses increased by 7.3 per cent to $475.7 million.
The 3.3 per cent decrease in total letter volumes from the same period for the previous year was put down to due to slower economic conditions, electronic substitution and increased competitor activity.
Mr Toime said NZ Post expected letter volumes to continue to decline and they had made significant changes to their operational network to continue to manage their costs tightly.
“The half year result also includes the expenses of preparing the banking business case. Following Shareholder approval, we are now working on the establishment of low-fee personal banking services throughout the retail network by early 2002,” he said.
Mr Toime said while the focus for the following year would be to build value through growth strategies in both the international and electronic business markets, NZ Post would still stay committed to providing an efficient traditional mail service to all New Zealanders.
© NewsRoom 2001
