NZ Post reports lower half-year profit

New Zealand Post today reported a net profit of $34.7 million for the half year ended December 31, as domestic mail volumes continued to fall.

This compared to a $40.4 million net profit for the previous December half.

Chief executive John Allen said the difference partly reflected the $6 million gain on the sale of the Christchurch Mail in 2004, as well as the partial divestment of Express Couriers last year.

Operating revenue for the half year was $565.4 million, down from $618.0 million for same period in 2004. Operating expenditure also fell, to $519.9 million from $559.2 million last year.

The Government will receive a $16.7 million interim dividend.

Domestic mail volumes fell 1.8 per cent, which Mr Allen said reflected the growing use of email, customers consolidating their mail-outs and some businesses postponing their marketing due to the slowing economy.

New Zealand Post is looking to cut costs and improve efficiency in an effort to offset the falling volume, and is testing a new mail sorting machine at its Epuni mail centre in Wellington.

Mr Allen said the group's diversification was paying off with Kiwibank growing its net profit to from $2.5 million $5.4 million, and Datamail and Express Couriers also both putting in positive performances.

During the period the group sold its 33-store Books and More franchise to Paper Plus.

Mr Allen said despite the challenging economic environment and increased pressure on domestic mail he was confident New Zealand Post could improve on the underlying full year net profit posted last year.


- NZPA