An Post suffers pre-tax losses of €15.6m

An Post has released its annual report for the year ended December 31, 2016. Its revenues were down €0.4m to €825.7m and it made a pre-tax loss of €15.6m.

Its parcels and letters segment, which makes up the majority of its business, saw revenues fall 2.2% to €512.6m. This was partly as a result of a reduction in letter volumes by 5.2%. The decline in revenues in the year was halted somewhat by growth in general election mail revenue and by its agency, remittance and related services segment.

The Irish postal operator had net liabilities of €96.3m and net current liabilities of €48.5m at the end of the year. It said its net cash balance of €26.0m was considered to be insufficient for the company’s medium-term sustainability and its losses for 2017 had been projected at approximately €50m. The company subsequently applied to increase prices so it could fund its universal services obligations and this was accepted. Its 20% price increase has been in place since April 13, 2017.

Chief Executive Officer, David McRedmond, said: “The results for 2016 show that the direction of travel for An Post needs to change. The digital world is closing one door with e-substitution of mails and online banking, while opening another into the world’s largest industry of shopping through e-commerce.”

Source: An Post