NZ Post mail volume falls further

JAMES WEIR
Last updated 11:25 25/02/2013

Relevant offers

Industries

Meridian gives Tiwai smelter month extension on power decision Realestate.co.nz figures show sellers continue expect more for their houses Z Energy's $785m Caltex mega-deal heads to Commerce Commission Freeview launches new online TV streaming service Spark's campaign for cheaper internet gathers support Oddfellows not going anywhere: Allen's Business confidence slips into the red - ANZ Business Outlook Benjamin Mugisho and Beatrice Faumuina captivate Kea Inspire audience Tiwai decision on Meridian Energy power contract too close to call Angry firms unable to protect images from NZ Small Business Assistance Centre

New Zealand Post has revealed that total mail volumes slumped more than 8 per cent, a drop of 35 million items in the past six months, compared with a year ago.

NZ Post posted an after tax profit of $59.6 million for the half year to the end of December, up from $35.4 million in the corresponding period in 2011.

The profit was boosted by Kiwibank and the group's financial services businesses.

But NZ Post chief executive Brian Roche said "challenges remain for the mail business".

Tight cost management helped offset the declines in revenue, he said.

"Thirty five million fewer pieces of mail.. is a stark reminder of the need to change," Roche said.

NZ Post was confident it could maintain a "viable and sustainable" mail network if it was given the flexibility to make the changes it needed to.

The changes could be made in a "measured and planned" manner, in the best interests of the community and business.

But the latest mail volume figures showed they needed to make decisions now, rather than putting it off.

During the half year, NZ Post sold its shareholding in Datacom which would result in a one off gain on sale.

It had also sold two buildings in Auckland and Wellington.

All of that would free up capital for both the bank and continued changes in the logistics and mail business.

During the half year, NZ Post took full control of the courier business, Express Couriers, buying the balance of 50 per cent in June last year.

For the half year to the end of December 2012, NZ Post recorded revenues of $872.3 million, up from $670.2m in the same period the year before.

Ad Feedback

- BusinessDay.co.nz

Comments

Special offers

Featured Promotions

Sponsored Content