Japan Post Group have announced its financial results for the nine months ending December 31, 2016. The group made consolidated revenues of ¥9,990bn, down 7.5% year-over-year. Net ordinary income was down 25.9% year-over-year to ¥581bn. Poor headline figures were largely due to its life insurance income, which make up the majority of groups sales.
Postal business income was ¥1,888bn for the group in the nine months ended December 31, 2016, an increase of 5.1% year-over-year. Postal business income made up 18.9% of total revenues for the group in this period.
Total operating income for Japan Post Company totalled ¥2,826bn. Logistics related revenue came from its postal service sector, which were up 0.3% to ¥1,433bn and its international logistics sector which made ¥479bn. The remaining income sources arises from banking and life insurance. Net operating income for the company was down 11.1% to ¥34bn.
Year-over-year revenue comparisons for the company are ambiguous due to changes in the company structure over the year. Its international logistics business derives revenue from Toll Group, which was acquired by Japan Post in 2015. In the nine months ended December 31, 2015, sales were only counted in Japan Post’s accounts from July onwards. Pro forma, the revenue for the nine months to December 31, 2016 for Toll were down 17.7%, due to a decline in usage in the Australian domestic network and weak demand in international sea and air freight markets.
Japan Post saw an overall increase in mail handled as well as an increase in income for Yu-Pack and Yu-Mail. However, there was a decrease in income from special mail, new year’s postcards and international mail.
Source: Japan Post