MaltaPost plc - Interim Results

On 27 May, MaltaPost plc issued its interim results covering the six months up to 31 March 2009. The financial statements show a 4.3% decline in turnover to €10.5 million as the drop in revenue from local mail volumes and philatelic material was larger than the increase in inbound mail. Moreover the Company incurred operating costs of €3.4 million, 13.9% higher than the comparable period last year. This rise in expenses was mainly due to an increase in foreign mail volumes and indirect costs such as water and electricity bills. This resulted in a 26.2% drop in profitability to €1.9 million as last year’s one-offs, namely the revenue generated from general election mail and the issue of memorabilia in respect of the introduction of the euro, were not repeated this year.

MaltaPost stated that its operating environment continues to be determined mostly by the effect that e-substitution is having on traditional mail volumes. Although this is partly being offset by the growing international inbound mail, the Company intends to diversify its business into low cost financial services and back office processes. The Directors stated that they are confident that the Company will achieve the targets set at the beginning of the year. Furthermore, the Directors reiterated that MaltaPost has a strong balance sheet allowing it to move forward with its plans.

The Directors did not declare an interim dividend.

A copy of the Preliminary Profits Announcement can be downloaded from here.

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