Magyar Posta’s profit rises last year

Telco

Consolidated after-tax profit of Hungarian state-owned postal company Magyar Posta reached HUF 2.8 bln last year, almost tripling as compared to the previous year’s HUF 1.03 bln, the company said today.

The company noted that, although its letter and postal check business shrank, the package delivery business grew markedly, while demand also increased for investment and insurance products that the company sells.

Expenditures of the postal company last year exceeded HUF 15 bln,while revenue rose to HUF 189.5 bln from the previous year’s HUF 185.9, public records show. The company said that letter delivery generated about half of revenue, financial services 30% and package delivery and sales of newspapers and other products 20%.

Letters delivered by Magyar Posta declined by 3% as compared to the previous year, down to 700 mln. The post processed 220 million postal checks with a value of HUF 2.2 trillion. The number of packages the company delivered rose by 15%. reaching 13.5 million, reinforcing its dominant position in Hungary with a market share of more than 30%.

Magyar Postaʼs profit and loss statement posted on the Justice Ministryʼs company information portal shows it had an operating loss of HUF 4.6 bln last year, but a HUF 9.2 bln financial gain cushioned the impact on the bottom line, Hungarian news agency MTI said. A supplement to the statement shows Magyar Postaʼs revenue from factoring activities accounted for HUF 6.8 bln of overall financial revenue, up from nil in 2013, news agency MTI said, adding that the company also booked HUF 1.8 bln in proceeds from the sale of unspecified ownership stakes.

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