NZ Post cheered by parcel rise
A record number of parcels at Christmas has lifted New Zealand Post’s revenue despite declining mail volumes.
The state-owned postal service, which owns Courier Post, has announced a profit after tax of $7 million for the six months ended on December 31, up from $6m a year earlier.
Revenue was $471m, up $19m on the same period in 2017.
The company said it delivered a record 14.5 million parcels over the November and December period and more growth was predicted over the next year.
However, the number of letters it handled continued to slow. It delivered 200 million letters in the second half of last year, 30 million fewer letters than a year earlier.
NZ Post chief executive David Walsh said it was confirmation that the company was right to focus on parcels.
‘‘We continue to work hard to find ways to offer a letter delivery service that meets customer needs and that we can cover the costs of.’’
NZ Post faced criticism late last year after it was revealed that the company planned to close 79 remaining standalone PostShop outlets, and offer them out as franchises.
The company’s profit was affected by a $15m warranty settlement made to ACC and the New Zealand Superannuation Fund relating to their purchase of 47 per cent of Kiwibank three years ago.
However, the improved performance of Kiwibank lifted NZ Post’s share of its earnings to $28m, which was $9m more than the previous year.
NZ Post still holds 53 per cent of Kiwibank.
ACC and the NZ Super Fund bought stakes in Kiwibank from NZ Post in late 2016, but shortly afterwards the bank recorded a loss of $101m on an informationtechnology project to upgrade its core banking system.