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Gov't Wants Sustainable Business Model for Magyar Posta

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The government expects state-owned postal company Magyar Posta to adopt a sustainable business model, advance its green and digital transition, and continue to ensure nationwide services, National Economy Minister Márton Nagy said at a press conference in Budapest on Friday, according to a report by state news wire MTI.

Magyar Posta will be necessary in future, too, as an operator of "essential infrastructure" allowing all citizens access to conventional and online postal services, Nagy said. The company's activities include support for residents of Hungary's smallest settlements, including cash withdrawals and other financial services, he added.

He said Magyar Posta's fleet of vehicles needed to be upgraded in line with Hungary's climate goals.

CEO Barnabás Balczó said Magyar Posta could become self-sustaining in five years, balancing out its conventional, but loss-making, services with profits from parcel delivery, fulfillment services and enhanced digital channels, while strengthening its financial services and expanding the banking, insurance, and lottery products it sells for partners through its own network.

Magyar Posta could add close to 400 partners to its network in the future, while the number of parcel lockers it operates could reach 700 by year-end, he added.

He said Magyar Posta could expand its services abroad, to markets in Bulgaria, Croatia, Serbia, Slovenia, and North Macedonia.

He noted that Magyar Posta delivered the monthly pensions, in cash, of about 850,000 Hungarians.

Magyar Posta had revenue of HUF 246 bln and profit of HUF 2 bln in 2023. It delivered 445 mln letters and over 29 mln packages. It also processed close to 139 mln postal cheques and facilitated around 1.8 mln retail government securities transactions. It has 561 partners in addition to 2,231 post offices and operates 550 parcel lockers.

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