NZ Post reports $40.4 million half year profit

NZ Post CEO John Allen

New Zealand Post today reported a net profit of $40.4 million for the half year ended December 31, up from $21.7 million for the previous corresponding period.

Operating revenue for the period was worth $618 million, up from $523.8 million, while operating expenditure rose to $559.2 million from $486.6 million.

An interim dividend of $19.2 million will be paid for the half year, up from $13 million for the same time last year.

NZ Post's chief executive John Allen said the higher earnings were largely due to an improved performance by the Express Couriers business, and a $6 million gain from the sale of the Christchurch Mail Centre.

Kiwibank was also a major contributor, having posted its first ever profit last month, when it announced a half year net profit of $2.5 million, up from a $1.5 million loss the same time the previous year.

NZ Post said its Letters Group continued to face challenges due to the changing mix of mail and increasing popularity of electronic mail. The division is seeking to improve its mail processing by improving the read capability of machinery.

During the half year NZ Post sold its shares in holding company Express Couriers, which owns Courier Post, Pace!, SkyRoad and Contract Logistics, to form a 50/50 courier joint venture with Deutsche Post-owned DHL. In January NZ Post valued Express Couriers at $160 million to $180 million.

- NZPA