New Zealand Post has reported a profit of $169.7 million for the year to June 30, turning around a loss of $35.6m last year.
However the improvement was largely due to a stellar performance by Kiwibank and a $96.2m one off accounting gain resulting from buying out DHL's 50 per cent stake in the Express Couriers joint venture.
Kiwibank this week reported a profit of $79.1m after tax, up from $21.2m.
There were also $6.3m of other restructuring costs.
Excluding one off adjustments the group profit after tax would have been $79.8m compared to $41.7m last year.
The core postal business continued its decline in both revenue and volume with 54 million fewer letters sent in the last year and revenue falling by $17m.
NZ Post chief executive Brian Roche said changes to postal products and services had provided some benefits.
"However, we have exhausted these short-term fixes. The continuing volume and revenue decline in our traditional core business is further evidence we must proceed with fundamental change," Roche said.
Buying the remaining half of Express Couriers from joint venture partner DHL had given NZ Post as 100 per cent owned courier and logistics company to take advantage of the growing parcels and logistics markets, Roche said.
The joint venture was originally established in 2005.
Roche said it was imperative that the Government lifts regulations that restrict New Zealand Post's to service requirements and network design that pre-date the digital age.
- © Fairfax NZ News