Israel Postal Service reported its results for the first half of 2016 today, with revenue down 2% to NIS 901 million, from NIS 921 million in the corresponding period in 2015. The decline in revenue is mainly due to an ongoing decrease in use of mail services, and the move to email and paying over the internet.
In the first half of 2016, revenue from mail services dropped 7% from the corresponding period in 2015. On the other hand, revenue from overseas packages and shipments jumped 32%, compared with the corresponding period, which nearly offset the decline in revenue from traditional services.
Overall, the company reported a net profit of NIS 19.5 million in the first half of the year, a rise from the corresponding period. EBITDA (with the deduction of retirement expenses from 2015) was NIS 98 million (10.9% of revenue), compared with NIS 97 million (10.6% from revenue) in the corresponding period.
In the second quarter of 2016, Israel Postal Company profits plummeted to NIS 4.25 million, compared with NIS 20.7 million in the second quarter of 2015. Revenue dropped to NIS 439.5 million.
Further data indicate that operational streamlining continued with a 470 job cut during the first half of 2016, as part of the Israel Postal Service recovery program conducted in cooperation with the workers' committee and the Ministry of Finance. The company also reported that waiting times have dropped 50% to an average of 9 minutes in the first half of 2016, without any days excluded, compared with a 18 minute wait in the corresponding period. During this period, a new, first-of-its-kind regional mail distribution center was opened in Rishon Lezion, which concentrates mail distribution operations in Rishon Lezion and Holon, enabling the company to save on real estate and operation expenses, while providing mailmen with better working conditions and reducing the time required to distribute mail to recipients.
The number of incoming overseas packages continued growing during the reported period due to increased overseas internet purchases, to 24 million packages, compared with 17.5 million in the corresponding period.
Published by Globes [online], Israel business news - www.globes-online.com - on August 31, 2016
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