NZ Post boosts profit 34% on asset sales, Kiwibank
By Suze Metherell
Aug. 28 (BusinessDesk) - New Zealand Post Group lifted annual profit 34 percent, booking a one-off gain from the sale of its Australian business, Couriers Please, while at home its Kiwibank unit boosted earnings.
Tax-paid profit was $143 million in the 12 months ended June 30,which includes a $46 million gain from the sale of its Australian business for A$95 million. That compared with $107 million in the previous year, the government-owned mail business said. Revenue slipped 0.5 percent to $1.6 billion, while underlying profit rose 3 percent to $128 million. It paid an unchanged dividend of $5 million.
NZ Post's banking subsidiary, Kiwibank, increased profit 27 percent to $127 million in the year ended June 30, as revenue gained 17 percent to $560 million.
The SOE is two years into a five-year transformation plan as it contends with shrinking mail volumes in an increasingly digital world, laying off staff and reducing its physical store footprint. In July it pared back traditional letter-delivery services, moving to alternate day delivery for standard letters in urban areas. At the same time, the group has targeted earnings growth from Kiwibank, which was established 13 years ago.
Speaking at a media briefing, chief executive Brian Roche said NZ Post starts $30 million behind each year from the "structural decline" of the mail business. Last year mail volume declined 10 percent.
Stripping out sales from its finance and banking unit, sales declined to $700 million in the year, from $730 million the previous year. Its mail business reported an annual loss of $4 million.