KEY POINTS:
New Zealand Post, owner of Kiwibank, today reported a 10 per cent lift in its December half year net profit to $38.2 million.
Revenue rose 9 per cent to $616.7m and expenditure rose the same amount to $561.9m.
The Government's interim dividend will rise from $16.7m to $20.3m.
Chief executive John Allen said the result was largely driven by the continued strong performance of Kiwibank and Express Couriers Limited (ECL) -- the 50 per cent joint venture that was formed with DHL in 2005.
Innovation was helping grow revenue while traditional revenue such as mail services continued to fall, he said.
"New services like the Prezzy Card launched in PostShops in November, mobile banking through Kiwibank and our Real Aotearoa stores which stock collectables and stamps alongside quality New Zealand souvenirs are just some of the new ways we've continued to diversify our offerings over the past six months."
During the period, Kiwibank more than doubled its after-tax profit to $11.4m. The bank now had over half a million customers.
The amount of domestic mail sent continues to decrease -- down 2.9 per cent in the six months. This was partly been offset by growth in parcels, driving by growth in activity from online auction house Trade Me.
"This changing mail mix means delivering larger, heavier items to more mail boxes around the country and this continues to place pressure on the business to manage increasing costs while maintaining a high standard of mail delivery," Mr Allen said.
International mail was also continuing to grow.
The SOE was investing to modernise mail processing centres.
Mr Allen said the company expected strong competition across all parts of the business and ongoing pressure on mail volumes in the next six months.
"However, we will continue to explore growth opportunities and refine how we operate to keep pace with changing markets always with the goal of developing sustainable practices to meet the current and future needs of our customers."
- NZPA
