Maltapost interim profits take 50% cut

MaltaPost plc published its interim results for the six months ended 31 March 2012, registering €11 million in revenue - a 3.1% increase over the same period in 2011, on the back of increased cross-border traffic and non-postal revenue.

The company, which is owned by Lombard Bank plc, said it was faced with a considerable increase in direct mail costs due to changes in tariffs regulated by the Universal Postal Union, impacting revnue streams.

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

This change in tariffs by the UPU also resulted in a considerable increase in direct mail costs which led to a 22.6% increase in other expenses to €4.4 million.

Maltapost registered a 2.3% increase in its wage bill to €5.3 million, as well as a 33% increase in depreciation to €580,000 following the acquisition of the company's head office in Marsa and other 'strategically located properties'.

Profit registered was €796,000, which was significantly lower than the €1.69 million reported in respect of the six months ended 31 March 2011.

Net finance income also dropped substantially to €36,000 (March 2011: €185,000) reflecting lower income from sale of investments as well as the increased interest costs arising from the debt used to finance part of the acquisition of the properties.