AN POST will seek an increase in the price of a standard 55 cent stamp after operating profit more than halved last year to €2.2 million from €5.7 million in 2010.
The decline came as the volume of mail handled by the State-owned body fell by 7 per cent.
Despite the reduction in mail volumes, group turnover increased slightly, from €805 million to €807 million, as the State body diversified its revenue streams. Revenue from subsidiary companies, including One Direct, the Gift Voucher Shop and UK-based Air Business, which specialises in international periodical and direct mails distribution, rose by 24 per cent to €84 million, while its core retail business generated revenue of €171.6 million, in line with 2010.
The company also benefited from providing extra agency services for institutions such as Allied Irish Bank, National Irish Bank and other finance and utility providers.
Responding to the decline in mail “remains the biggest challenge facing the company in the year ahead”, An Post said, adding that the “unprecedented volume decline” of mail had resulted in a “serious and unsustainable shortfall in universal service obligation funding” for the company.
An Post has applied to the regulator, ComReg, for an increase in the current 55 cent stamp tariff later this year.
“In spite of significant cost reduction, the mail volume decline means that, without the necessary price adjustments, the situation will continue to deteriorate,” it said.
An Post made savings of €15.4 million in pay costs during the year due to voluntary redundancies, more efficient working arrangements and the increased use of automated mail, according to the company.
