NZ Post lifts net profit 38 percent
Fri, 24 Aug 2012 10:36a.m.
Record earnings from Kiwibank helped push New Zealand Post's underlying net profit after tax up 38 percent to $79.8 million in the year to June 30.
But postal revenues still fell $17m as the trend away from posting letters continued.
"Kiwis posted 54 million fewer letters in the past year," said chief executive Brian Roche, who said this was "further evidence we must proceed with fundamental change".
"Our postal business is benefiting from improvements to product and service offerings, careful management of costs and continued improvements to our operations model," he said in a statement.
"However, we have exhausted these short term fixes."
The postal operator is bound by delivery service obligations negotiated with the government before the advent of email and other digital communications, and Mr Roche said NZ Post is now working through changes to those regulations with its government owner.
"Much work lies ahead to achieve the design of a sustainable, viable physical network, and improved service delivery network."
Top-line net profit results showed NZ Post bouncing back from a $3.6m loss in the 2011 financial year to a $169.7m profit, but both years included one-off items.
Some $96.2m of this year's profit figure related to the non-cash addition impact of Post's purchase during the year of the 50 percent share of the Express Courier previously owned by the global courier firm DHL.
Total revenues for the NZ Post group, which includes Kiwibank, came to $1.31 billion, compared with $1.27b in the previous year.
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29/08/2012 5:44:22 p.m.
ERM: So they can increase the pace of decline and eventually fire all the delivery workforce...then give the remaining work to the self-contracting couriers.
Brian Roche got the job for a reason. ;
24/08/2012 10:52:38 a.m.
SO why have they just put their prices up again?
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