For the six months ended 31 March, MaltaPost registered a profit before taxation of e2.60 million, as compared to e1.01 million for the same period last year. This represents an increase of 157 per cent (e1.59 million) over the six months ended 31 March 2007. Earnings per share increased to e0.060 from e0.023 in 2007.

• Turnover increased by 13.41 per cent from e9.66 million to e10.96 million

• Cost-to-income ratio improved to 76.64 per cent from 89.65 per cent for the same period last year;

• The provision for liabilities and other charges registered a positive movement of e401k over last year. This provision relates to amounts concerning ex-government employees who had opted to become full-time employees of MaltaPost and who were entitled to rights that went beyond the National Insurance scheme.

The decrease in provision arose on the reversion of some such employees to government in the period under review.

Apart from an overall increase in business, performance during this period was enhanced by two events, viz. increased volumes during the General Election and philatelic/numismatic issues commemorating the introduction of the euro.

The postal services industry experiences seasonal fluctuations. In Malta, the first half of the financial year (October to March) is characterised by higher activity and volumes than the second half of the year. It is therefore reasonable not to expect the same level of performance in the second half of the financial year.

The outlook for MaltaPost is determined to a substantial degree by the effect that e-substitution has on traditional mail volumes which remain its main source of revenue.

Nevertheless, the board is cautiously confident that MaltaPost remains on track to achieve its targets for the financial year and this as a result of the dedication of its staff, the loyalty of its customers and the support of its

shareholders.