Maltapost’s interim profits have been halved after the postaloperation was faced with considerable direct mail costs following changes in tariffs regulated by the Universal Postal Union.

The company reported pre-tax profits of €796,000 for the six months to March 31, down from €1.69 million in the corresponding period last year. It said the change in the tariff structure, as regulated by the UPU, also hit revenue streams.

“Maltapost, as the national regulated postal operator, is mindful of its obligations to provide an affordable universal service, even extending some of its core services at a loss in the short term as local letter tariffs continue to be the lowest in the EU,” the company said in its interim accounts statement.

“Maltapost is working closely with the regulator, the Malta Communications Authority, to ensure a fair regulatory approach which is appropriate and relevant to the challenging and dynamic competitive market in which it operates.”

In the meantime, Maltapost has concluded acquisitions of keyproperties, including its Marsahead office and other strategically located properties.

These were financed by a mixture of own funds and bank borrowings which impacted the interim results through a decrease in net finance income and an increase in depreciation and amortisation charges.

Turnover increased by 3.1 per cent to €11 million (up from2011’s €10.7 million. Traditional mail volumes are still on the decline, in line with worldwide trend.

However, this was compensated by an increase in weight ofcross-border traffic which registered an increase in revenue despitebeing negatively impacted by the change in tariff structure as determined by the UPU.

The board of directors expressed confidence Maltapost has thenecessary human, technical and financial resources to providethe best possible range ofservices to the community while continuing to deliver a fair return to its shareholders.