MaltaPost plc - Interim Results

Wednesday, May 16th, 2018

On 16 May, MaltaPost plc published its interim results covering the six-month period ended 31 March 2018.

Performance Overview

During the first half of the current financial year, MaltaPost generated revenues of €24.2 million. This represents an increase of 37.3% over the previous comparable period and principally reflects continued growth in foreign mail activity, parcels business and document management services.

On the other hand, the overall increase in business led to a substantial rise in costs as these surged by nearly 45% to €23 million. As a result, EBITDA dropped by just over 22% to €1.65 million (H1 2016/17: €2.12 million) whilst operating profit declined by 31% to €1.21 million (H1 2016/17: €1.75 million). Moreover, profit margins tightened considerably, with the EBITDA and operating margins easing to 6.8% and 5% from 12% and 9.9% respectively.

After accounting for finance income of €0.09 million, the postal operator reported a pre-tax profit of €1.29 million. This is 29% lower than the figure of €1.82 million posted in previous comparable period. Similarly, after deducting a tax charge of €0.43 million, net profit for the period dropped by almost 28% to €0.86 million (H1 2016/17: €1.19 million). This translates into an earnings per share of €0.023 (H1 2016/17: €0.032).

The Statement of Financial Position shows that total assets grew by 23.6% to €51.3 million since the end of September 2017, largely reflecting the considerable increase in trade and other receivables (in line with the increase in foreign mail activity) which outweighed the drop in cash balances of almost 50%. Likewise, total liabilities grew by 58.4% to €28.3 million, reflecting higher levels of trade and other payables, whilst the company remained debt-free. Overall, shareholders’ funds decreased by 2.8% to just under €23 million. This translates into a net asset value per share of €0.61 (30 September 2016: €0.628).

Outlook

In their commentary, the Directors noted that local letter mail volumes continued to decline, thus rendering the whole delivery process less cost-effective. In this respect, MaltaPost explained that reasonable and timely pricing reviews have now become essential to ensure continued viability of its responsibilities under the Universal Service Obligations. On the other hand, the company explained that there exists scope of further potential growth in the packet and parcel business, although the competitive environment remains highly challenging.

Overall, the Directors expressed their confidence that MaltaPost will continue on the right track to render a quality service to its customers, as well as provide fair returns to its shareholders.

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MaltaPost plc – Interim Financial Statements for the six months ended 31 March 2018.

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