MaltaPost has reported a pre-tax profit of €1.92 million for the six months ending on March 31, down from €2.60 million in the same period last year.

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

The company said that in the six months under review, turnover dropped by 4% over the same period last year to reach €10.5 million. This was mainly due to a decrease 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 e-substitution 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 intends to further diversify the business into low cost financial services and back office processes.