2007 Results

29/04/2008

An Post reports record operating profit and strong revenue growth. Mail volumes increase and quality improves

An Post has achieved a profit of €43.3m (after-tax) for 2007.    Operating profit doubled to €29.1m, up from €14.7m in 2006.  Reporting a profit for the fourth consecutive year, the company’s year-on-year profit margin almost doubled to 3.3 per cent from 1.8 per cent in 2006.

Turnover increased by €57m (up 7 per cent) to €876m.  The company grew its mail volume by 5.3 per cent, an increase driven by improved quality and reliability of service. 

An Post successfully handled a large amount of time-sensitive, national mailings generated by the 2007 General Election which, combined with 2.3 per cent growth in core mail volumes, resulted in year-on-year mails growth of 5.3 per cent.  

Domestic quality of service, and customer satisfaction, as measured by ComReg, improved significantly during 2007, as did the quality of service for inbound and outbound international mail.  The number of buildings to which An Post delivers mail increased by 96,000 last year and the number of individual addresses rose to 2.13 million.

Speaking after the company’s AGM at the GPO today, recently appointed Chairman, John Fitzgerald said he was pleased that one of his first duties was to report on the success of the first year of An Post’s five-year Transformation Plan:

“A record operating profit has been achieved on a very solid financial performance and quality of service in terms of next-day delivery steadily improved across the year. Most significantly, I believe the progress made in 2007 is due in no small measure to the improved industrial relations climate with the company; with management, staff and trade unions committed to the delivery of the Transformation Plan.  2007 is a year of which everyone in An Post can be proud, and this level of performance must be maintained if the company is to thrive in a fully liberalised market,” he added.

Chief Executive, Donal Connell said that the company’s strong revenue growth and success in implementing Change programmes, quality of service improvement and the launch of Postbank were particular highlights of 2007:

“We have made solid progress in positioning our mails and retail businesses to take advantage of commercial opportunities, and in preparing for full liberalisation of the postal market.  62 per cent of our mails market is already open to competition, and our mail volumes still continue to grow apace.  We are more flexible and customer-focused than ever before, and we can be confident about capitalising on our unique strengths – our customer base, and our industry expertise.”

Mr Connell went on to say that the drive to improve quality had been top priority:  “The achievement of 5 per cent quality improvement is very satisfying for everyone in An Post.  There’ll be no let up where quality is concerned.  We have increased our focus on the An Post brand through areas such as advertising and sponsorship, and we are reaping the benefits through increased turnover across the business, as well as a growing sense of  confidence and pride across the company,” he added.

Retail network revenue grew by 7 per cent last year, which also saw the successful launch of Postbank, the new joint venture bank established by An Post with global financial services company, Fortis.  Postbank has been very well received across the Post Office network and its customer base is growing steadily. 

Prize Bonds, BillPay, Passport Express, mobile phone top-ups and the suite of savings and investment products operated on behalf of the NTMA all continued to perform very strongly across the post office network.

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