NZ Post have announced its financial results for the six months ended December 31, 2016. Changes in group structure over the previous few years had a major impact on the company’s statements. Revenue was down 9.0% to NZ$467m, whilst net profit decreased 5.4% to NZ$35m.
In 2016, NZ Post sold 47% of its banking, insurance and wealth brand, KGH. Furthermore, in late 2015, it sold its business process outsourcing subsidiary, Converga. KGH figures were not included in the financial statements or comparisons, but Converga’s results were.
NZ Post attributed the fall in revenue to the sale of Converga, as well as the decline in letter volumes which was not fully offset by the growth in its parcel business. It announced that its mail, parcels and logistics division saw a 7.5% increase in parcel volumes, whilst profit in this sector was up NZ$15m on the same period last year. Cost savings aided a group operating profit increase of NZ$19m to NZ$21m, though a decrease in wage expenditure from the sale of Converga was the main factor in this rise.
Chief Executive Brian Roche stated: “This is a strong first half result. Given we face the same challenge every year of having to combat the $20-30 million in revenue we lose annually due to the decline in letters, we are pleased that our strategy is delivering and putting the postal services business further in the black.”
Source: NZ Post