Maltapost's interim profits down

Maltapost yesterday reported a pre-tax profit of €1.92 million for the six months ending on March 31, down from €2.6 million in the same period last year.

The company said last year's profitability was enhanced by two one-off events: increased volumes generated by the general election and the issue of philatelic material marking euro adoption.

The company said that in the six months under review, turnover dropped by four per cent over the same period last year to reach €10.5 million. This was mainly due to a drop in local mail volumes and philatelic material, which was partly offset by an increase in inbound mail.

Operating costs increased as a result of foreign letter mail volumes and indirect costs such as the water and electricity charges.

The company said its outlook continued to be determined by the effect of internet mail instead of traditional mail. However, the traditional internal mail market was being substituted by increases in international inbound mail as a result of growth in internet shopping.

The company said it planned to further diversify the business into low-cost financial services and back office processes.