Spain’s state postal operator Correos is speeding up investment in modernisation of its postalservices and in development of diversified new products. The “ambitious” plans would enable the
post office to improve its quality standards and ensure job employment levels in the medium andlong term, company president José Damián Santiago told the Spanish Parliament recently.Correos will invest nearly 253 million euros next year on quality improvements, including itsnetwork and new automated sorting systems, Damián Santiago said. Some 135 million euros will bespent on modernisation of 334 postal outlets and 131 operational centres. A further 85 millioneuros will be spent on postal automation and information technology measures.
Under its budget for 2006, Correos aims to increase revenues by 3.1 per cent to 1.97 billioneuros and plans expenditure of 1.81 billion euros. Postal services would account for 92 per cent ofthese revenues. The post office aims for net profits of 58.7 million euros and pre-tax profits of115.4 million euros next year. These figures would give the Spanish postal operator a profit marginof about six per cent.
Correos aims to expand online services as well as offer more added-value services through itspost office network, Damián Santiago said. Non-postal services would grow faster than traditionalmail products. The Correos president warned that 2006 could be the last year of mail volume growthin Spain before a substitution effect generated by electronic communications impacted business.
