Mal­ta­post wants stamp of ap­proval for new tar­iffs

The Malta Business Weekly - - NEWS -

Mal­ta­post is in talks with the au­thor­i­ties for a re­view of tar­iffs which have been frozen for years, mak­ing the cost of mail ser­vices in Malta the low­est in the EU but caus­ing the com­pany a slide in its prof­itabil­ity.

In a state­ment on Mon­day, Mal­ta­post said it made a pre-tax profit of €2.62 mil­lion in the year to Septem­ber, down from €3.05 mil­lion in the pre­vi­ous year.

It said growth of ser­vices re­lated to in­ter­na­tional mail, parcels busi­ness and doc­u­ment man­age­ment ser­vices con­trib­uted to higher rev­enue of €40.2 mil­lion from €38.4 mil­lion last year.

But costs rose to €37.7 mil­lion from €35.5 mil­lion.

“The com­pany’s postal ac­tiv­ity re­mains con­di­tioned by the strin­gent Uni­ver­sal Ser­vice Obli­ga­tion cou­pled with a postal tar­iff struc­ture that has not been re­vised since a num­ber of years and this de­spite year-on-year in­creases in over­all op­er­a­tional costs,” the com­pany said.

“The sig­nif­i­cant vol­ume growth in in­ter­na­tional mail ser­vices has been damp­ened by lower mar­gins due to in­creased com­pe­ti­tion in this sec­tor,” it added.

“Mal­ta­Post re­mains com­mit­ted to its Uni­ver­sal Ser­vice Obli­ga­tion within a re­vised tar­iff struc­ture and is work­ing with its reg­u­la­tor, the Malta Com­mu­ni­ca­tions Au­thor­ity to achieve this dur­ing the next fi­nan­cial year. In com­par­a­tive terms, tar­iffs for mail ser­vices in Malta re­main the low­est in the EU.

"While the com­pany strives to im­prove op­er­a­tional ef­fi­ciency and man­age costs, the timely in­tro­duc­tion of a re­vised tar­iff struc­ture is vi­tal given that this in­dus­try is labour and trans­ac­tion-in­ten­sive, which also ne­ces­si­tates an ex­ten­sive de­liv­ery and re­tail net­work so as to re­main ef­fi­cient. It also needs to be in a po­si­tion to in­vest so as to re­spond ef­fec­tively to the chal­lenges pre­sented by the mar­ket in gen­eral and those un­reg­u­lated op­er­a­tors in par­tic­u­lar,” it said.

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