Slovenska Posta expects gross profit of SKK 260M in 2002
State-owned postal service company Slovenska Posta plans to close this year with gross earnings of SKK 260 million on revenues and expenditures in the range of about SKK 6 billion, finance director Jiri Vacek told a news conference on Wednesday. The estimate is based on results for the first ten months. As of October 31, Slovenska Posta reported revenues of SKK 4.95 billion, expenditures of SKK 4.54 billion and gross earnings at SKK 410 million. End-year results will be influenced by Christmas output, expenditures related to the annual financial statement and chiefly by end-year bonus payments to employees, since wage costs make up more than 60 percent of Slovenska Posta’s expenditures, said Mr. Vacek.
The planned introduction of 20-percent VAT on postal services will only apply to supplementary services beyond the universal service framework. However, consignments up to 2 kg, parcels up to 10 kg and express mail, defined as universal service, are free from VAT.
In early October Slovenska Posta submitted a proposal to the regulatory authority to increase domestic postal tariffs by 15 percent on average from January 1, 2003. However, the authority has not yet approved the proposal. Average growth is estimated at 12.5-15 percent depending on the kind of service. Prices of some services could even go down. Mr. Vacek confirmed estimates that the monthly price increase impact will be SKK 1.42 per capita, SKK 424 per organization partly or fully subsidized from the state budget, and SKK 48 per remaining entities. The price growth will chiefly hit non payers of VAT, such as social-security provider Socialna Poistovna.
The situation will be clear after the regulatory authority issues a postal license to Slovenska Posta. The license will strictly specify universal, i.e. non-taxed services. Slovenska Posta is currently completing the respective application. It will submit the application to the authority again soon so that it can operate on the basis of the postal license from January 1, 2003.
