Spain’s public postal operator, Correos, yesterday reported net profits down by 30% last year toEUR 142.2 million from EUR 204.4 million in 2005.
A near 6% rise in personnel costs – due to salary increases and a rise in the number ofpermanent staff – dinted operating profit, although revenues rose 2.7% to EUR 2.025 billion fromEUR 1.972 billion the year before. Total operating expenses rose 4.8% to EUR 1.85 billion.
Correos said it invested over EUR 230 million in new infrastructure, equipment, products andservices in 2006 (EUR 143 million buying premises and land), and was planning to spend a furtherEUR 247.8 million in 2007, the fourth year of its 2004-2008, EUR 1 billion modernisation drive,which has seen it open 16 out of 17 new main mail hubs nationwide.
“These results confirm the positive tendency of recent years and consolidate Correos’leadership in the Spanish postal market,” the group said in a statement.
“Correos has gained economic solidity, has advanced in management flexibility and efficiency,and has implemented an ambitious plan to incorporate information and communication technologiesthat allow an agile response to new customer and client demands, offering a competitive service inthe face of full EU postal liberalisation,” it added.
The state-owned company made permanent the contracts of over 4,000 temporary workers at theend of last year and took on a further 669 new employees. It now has around 65,000 staff.
