New Zealand Post said it achieved solid profits for the half-year ending December 31 thanks toIncreased profit from Kiwibank and good growth in international mail volumes.
The country’s national postal company recorded an unaudited net profit after tax of $34.7million (€18.2 million). This compares with $40.4 million profit after tax for the previouslyhalf-year. The difference in part reflects the 2004 gain on sale of $6 million from theChristchurch Mail, and the partial divestment in 2004 of Express Couriers Limited, which means thatNew Zealand Post now records only half of after tax profit for that business.
Operating revenue for the half year was $565.4 million, compared with $618.0 million for sameperiod in 2004. Operating expenditure was $519.9 million as opposed to $559.2 million last year.The New Zealand Post Board declared an interim dividend of $16.7 million for the six months toDecember 2005.
Chief Executive John Allen said that the result was a solid one for the Group and achieved in achallenging economic environment. “A tough six months for our Postal Services Group saw domesticmail volumes fall 1.8%. This is largely as a result of the changing mix of mail, electronicsubstitution, customers consolidating their communications and some customers postponing theirmarketing due to a flattening economy. However, it was pleasing to note that international outboundmail volumes increased 3.1% for the six months to 31 December 2005 when compared to the same periodin 2004.” Allen added: “To ensure the sustainability of the business and that we continue to meetour customers’ needs in the future we advised during the period that we would be installing newtechnology in our mail centres, redesigning roles and processes and updating postcodes. Thisprogramme is of critical importance for the Group.
Allen said that despite the challenging economic environment and increased pressure on the coreproduct – mail, the New Zealand Post Group was confident of a sound full year result. “It isimportant that over this second half year period, particularly in light of the flattening economy,that we continue to manage costs tightly, however we will look to progress growth opportunitiesthrough our banking and Datamail businesses as well as through the ECL joint venture with DHL.Additionally, a focus of the Postal Services business will be the continued implementation of newprocessing technology in sites around the country and the communication of new postcodes to NewZealanders later this year.”
