NZ Post reports NZ$35m increase in revenue

NZ Post increase in revenue

NZ Post has released financial results for the fiscal year ending June 30, 2019. Reported revenues totalled NZ$*912m, up 4.0% year-on-year from NZ$877m in 2018.

The company delivered over 78m parcels this financial year, which was shown by the increase in revenue. According to David Walsh, NZ Post Chief Executive “1.8m New Zealanders shopped online in 2018, spending a total of NZ$4.2bn. A significant proportion of this spending is on items that require delivery as parcels. NZ Post completes well over half of these deliveries.” Its parcel operations were equally helped by a record Christmas period, which saw over 14.5m parcels delivered during November and December.

Although revenue was up NZ$35m year-on-year, NZ Post saw a larger operating loss of NZ$21m compared to NZ$15m the year before. This was primarily due to the provisions for Holiday Act remediation, by which NZ Post wasn’t affected in FY 2017/18.

A net loss of NZ$121m was recorded for this financial year, a NZ$134m decrease year-on-year from a profit of NZ$13m in 2018. According to NZ Post this extreme decrease is due to the NZ$51m write down on mail assets, NZ$59m write down on tax assets and NZ$38m set aside to cover the cost of future payments in relation to the Holidays Act remediation.

According to NZ Post, operating income declined particularly due to the decrease in mail volumes. Mr Walsh states that “ten years ago, one billion letters each year were sent through our network – in the past 12 months we delivered just 380 million letters, and an unquantifiable reduction is set to continue”.

Source: NZ Post

*€ = NZ$1.69 / $ = NZ$1.51