Postal ser­vices rev­enue drops $6m in first quar­ter

Chronicle (Zimbabwe) - - Business - Bianca Mlilo Busi­ness Reporter

THE postal and courier ser­vices sec­tor posted a 2,3 per­cent drop in rev­enue to $6 mil­lion in the first quar­ter of 2016 as it bat­tles fierce com­pe­ti­tion from mod­ern in­for­ma­tion com­mu­ni­ca­tion tech­nolo­gies, a re­port has shown.

Zim­babwe has 226 post of­fices with one post of­fice serv­ing 60 140 peo­ple, ac­cord­ing to the Postal and Telecom­mu­ni­ca­tions Reg­u­la­tory Au­thor­ity of Zim­babwe (Po­traz).

In its first quar­ter sec­tor per­for­mance re­port for the sec­tor, the reg­u­la­tory body noted a slight neg­a­tive change in fig­ures when com­pared to the same pe­riod last year.

“A to­tal of $5 955 158 was gen­er­ated by the postal and courier op­er­a­tors in the first quar­ter of 2016.

This rep­re­sents a 2,3 per­cent de­cline in rev­enues from $6 093155 gen­er­ated in the pre­vi­ous quar­ter,” said Po­traz.

Al­though the sec­tor gen­er­ated a size­able amount, the $137 997 de­cline in postal and courier rev­enue was at­trib­uted to the de­cline in postal and courier vol­umes.

Po­traz noted that traf­fic vol­umes for postal and courier ser­vices have been de­clin­ing as more peo­ple have turned to the use of telecom­mu­ni­ca­tion ser­vices such as email to send doc­u­ments lo­cally and in­ter­na­tion­ally.

The telecom­mu­ni­ca­tions reg­u­la­tory au­thor­ity said: “In­ter­na­tional in­com­ing postal and courier de­clined by 11,7per­cent to record 465 932 from 471 206 recorded in the pre­vi­ous quar­ter.

“In­ter­na­tional out­go­ing postal and courier also de­clined by 3,8 per­cent to record 249 013 from 258 830 recorded in the pre­vi­ous quar­ter”.

A to­tal of 1 521 649 do­mes­tic postal items were recorded in the first quar­ter with do­mes­tic let­ters con­sti­tut­ing 98 per­cent of that fig­ure.

“The postal and courier sub-sec­tor con­tin­ues to face stiff com­pe­ti­tion from telecom­mu­ni­ca­tion ser­vices.

“Growth in e-com­merce in the coun­try will present a prime op­por­tu­nity for the mar­ket to make a turn­around as courier ser­vices pro­vide the phys­i­cal de­liv­ery ser­vices for on­line pur­chases,” Po­traz con­cluded.

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