Maltapost is in talks with the authorities for a review of tariffs which have been frozen for years, making the cost of mail services in Malta the lowest in the EU but causing the company a slide in its profitability.

In a statement on Monday, Maltapost said it made a pre-tax profit of €2.62 million in the year to September, down from €3.05 million in the previous year.

It said growth of services related to international mail, parcels business and document management services contributed to higher revenue of €40.2 million from €38.4 million last year.

But costs rose to €37.7 million from €35.5 million.

“The company’s postal activity remains conditioned by the stringent Universal Service Obligation coupled with a postal tariff structure that has not been revised since a number of years and this despite year-on-year increases in overall operational costs,” the company said.

“The significant volume growth in international mail services has been dampened by lower margins due to increased competition in this sector,” it added.

“MaltaPost remains committed to its Universal Service Obligation within a revised tariff structure and is working with its regulator, the Malta Communications Authority to achieve this during the next financial year. In comparative terms, tariffs for mail services in Malta remain the lowest in the EU.

"While the company strives to improve operational efficiency and manage costs, the timely introduction of a revised tariff structure is vital given that this industry is labour and transaction-intensive, which also necessitates an extensive delivery and retail network so as to remain efficient. It also needs to be in a position to invest so as to respond effectively to the challenges presented by the market in general and those unregulated operators in particular,” it said.