Letter decline impacts New Zealand Post’s financial results

NZ Post increase in revenue

NZ Post reported revenues of NZ$*877m in the year ended June 30, 2018, but net profit after tax fell from NZ$93m to NZ$13m.

Compared to the previous financial year, NZ Post handled 63m fewer letters, which made the segment’s income decline by 11% respectively. However, the e-commerce segment performed well. The company delivered over 7m more parcels, (up 10%), which resulted in a 7% increase in revenues.

NZ Post Chief Executive David Walsh commented: “If the current rate of letter decline continues, in four years’ time we can expect to be delivering half of the volumes that we do today. We are responding to the reduction in demand in a number of ways, so this service can be maintained for communities and businesses alike.”

Source: New Zealand Post