Japan Post has announced a fall in revenues for the six months ended September 30, 2016. Consolidated revenues for this period amounted to ¥6,557,792m (down ¥477,209m year-on-year) and consolidated net income amounted to ¥303,227m (down ¥170,151m year-on-year).
In the postal and domestic logistics business, revenues amounted to ¥887,081m (up ¥776m year-on-year) and net loss amounted to ¥40,834m. Operating income and net operating loss during the six months for this segment amounted to ¥884,576m and ¥42,923m, respectively.
Income in the postal and domestic logistics business grew as a result of the revision in postage fee discounts which increased income from mail. In addition to this, the expansion of the e-commerce market, which led to increased income from Yu-Pack, Yu-Mail and Letter Pack, also contributed towards the income growth.
Revenues in the international logistics business amounted to ¥308,929m and net income amounted to ¥809m. Operating income and net operating income (EBIT) for the six months amounted to ¥308,674m and ¥5,448m, respectively. Japan Post reported that usage in this segment declined in the domestic network businesses due to delayed economic recovery in Australia. Similarly, demand in international sea and air freight markets was also weak.
Revenues in the post office business amounted to ¥686,885m (up ¥10,534m year-on-year) and net income amounted to ¥25,295m (up ¥1,901m year-on-year). Operating income and EBIT for the six month period in the post office business amounted to ¥686,110m and ¥24,793m respectively.
Japan Post reported that income in the post office segment grew due to the promoting operating initiatives in cooperation with Japan Post Insurance, strong catalogue sales as part of merchandising business and improvement in third-party financial product agency services.
Japan Post’s other business segments, Banking and the Life Insurance, both reported falls in revenues to ¥934,221m and ¥4,333,877m respectively.
Source: Japan Post
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