MaltaPost this week announced that its interim profits after tax had fallen by 6.1 per cent to €1.1 million in the first half of the company’s fiscal year. Despite a 1.4 per cent increase in revenue to €10.7 million, the postal carrier witnessed a reduction in profits before tax of 9.3 per cent to €1.7 million.

According to the company, the main contributors to this performance, in comparison to the same period last year were:

The increase in revenue was principally due to increases in international inbound and outbound mail traffic volumes. These were partially set-off by the continued downward trend of traditional mail volumes. Other non-postal revenue streams steadily increased over last year;

Employee compensation and benefits increased marginally by 0.9% to €5.1m;

Other operating costs rose by 9.2 per cent to €3.7million. This is the result of higher mail costs, utility bills and information systems support costs;

Finance income increased by 24.2 per cent as a result of a gain on the sale of certain investments held in the company’s portfolio. This was, in part, set-off by lower interest income;

Property, plant and equipment increased by 41.7 per cent. A property was purchased to house a postal museum and additional improvements were made to the branch network as well as to the head office building.

Shareholders’ funds increased to €22.5 million from €21 million in the previous interim period, principally as a result of a good number of shareholders opting to take the 2010 dividend in shares rather than cash.

In line with global postal trends, the company experienced a reduction in volume of traditional letter mail. However, the number of ‘packets’ received remains positive, as a result of increased e-transactions.

MaltaPost said in a statement that it continues to strengthen its non-postal activities by the provision of enhanced services, but it will remain sensitive to its role as the country’s key postal operator by providing traditional postal services to the community, irrespective of their financial viability. In this regard, the company will continue with its branch upgrading programme, re-branding exercise and investment in the expansion of further non-core activities. These initiatives are bound to increase costs in the short term but will, of course, provide the necessary platform to meet future challenges.

The board of directors reported, therefore, that it is confident that, together with its management and staff, the ground lost during the first half of the year will, as far as possible, be gained in the coming months.