Russian Post’s revenues increased 6% to RUB 29.6 billion (€743 million) during the first quarterof 2012 but its net loss soared to RUB 2 billion (€50 million) compared to RUB 153 million (€3.8
million) during the same period last year.The Russian postal operator explained that the negative net result is due to the changed way inwhich the compensation from the federal budget for universal communication services is reflected inthe income composition reported in the Q1 financial report of the company. The company stressedthat this result was in line with its expectations with the first quarter of each year which aretraditionally unprofitable.
During the first quarter of 2012, Russian Post’s parcel volumes rose by 8% to 13.7 million itemswhich resulted in an increase of 11% in revenues from the parcel operations to RUB 2.8 billion(€70.4 million).
EMS Russian Post, the express subsidiary of the postal operator, performed even better withrevenue growth of 16% to RUB 720.5 million (€18 million) during the first three months of 2012.Compared to the same quarter last year, the express operator increased its EMS shipping volumesfrom distance-selling companies by 18%.
EMS Russian Post stressed that it is actively cooperating with distance-trade firms to expandits customer base. In line with this, its revenues from this customer group rose 20% during thefirst quarter of 2012, while services to large corporate clients in the field of e-commerceincreased by 26%. Total sales from distance trade companies using EMS Russian Post servicesexceeded RUB 1.1 billion (€27.6 million) in the first quarter. The unit expects the increase annualsales from this segment from RUB 3.7 billion (€93 million) in 2011 to RUB 4.6 billion (€115million) this year.
EMS shipments with products ordered via internet shops and mail-order catalogues amounted to190,000 items during the first quarter. Thereby, 70% of products ordered by Russian citizens viadistance-selling companies are paid upon receipt of the particular shipment.
For more customer convenience, EMS Russian Post is currently introducing a new service providingdelivery of EMS customer shipments to the recently installed parcel terminals. Thereby, itscustomers including online shoppers are now able to receive their shipment at a place and time mostconvenient for them. Currently, two terminals are deployed by EMS Russian Post in Moscow and St.Petersburg. In the near future, the company plans to install further terminals in 20 Russiancities.
Commenting on the Q1 results, Russian Post said: “Overall, the profitability and efficiency ofRussian Post reflect the specifics of the federal postal operator that carries a significant socialburden combining social mission with a large-scale modernisation of its own resources.”
To improve its delivery quality with the increasing popularity of distance trade, Russian Posthas expanded the capacity of its regional automated sorting centre in Moscow.
In addition to e-commerce, the growing trend in Russia goes towards mobile communication withRussian Post making it possible for each of its clients to purchase a mobile phone, including acontract with a mobile operator and put credit on the phone.
As part of its nationwide project “Mobile Post”, Russian Post sold more than 50,000 mobilephones at its post offices during the first quarter 2012 which represents a 40% increase comparedto the same period last year. Launched in 2010, the project has quickly gained in popularity withmore than 200,000 new mobile phones bought at post offices in 2011 and 315,000 people becomingmembers of leading mobile operators through Russian Post. Thereby, Russian Post is activelycooperating with telecommunications providers for the realisation of mobile contracts and prepaidcards.
