Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ Post 1H earnings saved by KiwiBank, courier services

NZ Post first-half earnings saved by KiwiBank, courier services as mail’s slide continues

Feb. 25 (BusinessDesk) – New Zealand Post Group, the state-owned postal service, posted a 68 percent jump in first-half profit as stronger earnings from KiwiBank and Express Couriers made up for the continued slide at its core postal service.

Profit rose to $59.6 million in the six months ended Dec. 31, from $35.4 million a year earlier, the Wellington-based company said in a statement. Sales rose 30 percent to $872.3 million while operating expenditure gained 26 percent to $793 million.

KiwiBank “performed well in a highly competitive market, particularly in the face of aggressive competition in the home loan environment,” said chief executive Brian Roche. Express Couriers turned in a “very encouraging” performance in the extremely competitive environment, he said.

For postal services, “tight cost management helped offset the declines in revenue,” he said “Thirty five million fewer pieces of mail in the network is a stark reminder of the need for change.” NZ Post “is confident it can maintain a viable and sustainable network if it is given the flexibility to make necessary changes in the future.”

The company will pay an interim dividend to the government of $2.5 million, unchanged from a year earlier.

Revenue from core postal services fell to $383 million in the first half from $404 million a year earlier, while earning tumbled to just $1.8 million from $12 million.

Banking services, the KiwiBank business, lifted sales to $227 million from $205 million, boosting profit to $58 million from $37.9 million.

Courier services revenue soared to $138.5 million from $4.58 million in the first period since NZ Post bought out the remaining 50 percent of Express Couriers. Profit at the courier business rose to $10.5 million from $4.58 million.

Investments generated $112 million of revenue and $3.68 million of profit in the latest period, up from $52 million and a loss of $4.4 million respectively a year earlier.

KiwiBank “has maintained strong levels of profitability, although further pressure is expected towards year end,” Roche said. “The mail business continues to manage the decline in letter volumes with operational changes to ensure the business remains viable while longer-term initiatives are implemented.”

The full-year financial outlook is expected to meet expectations, he said, without being specific.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:


Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news