Latvijas Pasts concludes its first year in open postal market with turnover of EUR 58 million and profit of EUR 4.5 million; quality increases

10.06.2014

Latvijas Pasts concludes its first year in open postal market with turnover of EUR 58 million and profit of EUR 4.5 million; quality increases

Latvijas Pasts has concluded 2013, its first year of operation in the open postal market, with a net turnover of EUR 58 million and a profit of EUR 4.5 million. This data is obtained from the company's financial report for 2013, which has been audited by the audit firm KPMG Baltics SIA. The largest increase in the company's revenue structure 2013 was contributed by express mail services, freight forwarding and delivery of letter-post items. In accordance with the Latvijas Pasts quality measurements carried out by international auditing companies, the quality of domestic andcross-bordermail deliveries performed by the company was very high in 2013: in more than 90% of the cases the delivery was ensured on the next working day.

Since January 1, 2013, in accordance with provisions of the Postal Law, Latvijas Pasts has been providing its services in a completely open postal market, and the company's positive financial results demonstrate its full readiness for the open market and a high degree of competitiveness. According to the data obtained from the Public Utilities Commission (PUC), there are 105 postal companies currently registered in Latvia.

In 2013, Latvijas Pasts recorded an increase in revenues from the service segments such as express mail services with a growth of more than EUR 0.5 million or just under 15%, freight forwarding - EUR 0.2 million or 34% and delivery of letter-post items - EUR 0.2 million or 1%, compared to 2012. The booming e-commerce trend gave a significant contribution to the revenue growth through reinforced cooperation of Latvijas Pasts with new international business customers, by increasing the number of small packages processed in 2013 by more than half a million units or 70% in comparison to 2012.

Arnis Salnājs, Chairman of the Board at Latvijas Pasts, points out: "2013 was a major challenge for Latvijas Pasts, as the main objective in that period was to strengthen and develop the competitiveness in a completely open postal market. This task has been completed, and the market share of Latvijas Pasts is now stable, but with a growing trend. In order to attract new customers and to provide ever better service and quality level, the company continues to improve the services rendered, to upgrade technology and places where services are supplied and to optimize the working tools and conditions required for the staff to perform their job. To achieve these goals, it is essential to cover the previous losses of Latvijas Pasts, which we can do gradually using the profits made."

As at the end of 2013, the losses of Latvijas Pasts accumulated over the preceding years were EUR 29 million. The company's profit (loss) trends for the past years can be viewed in the infographic.

The quality of Latvijas Pasts services measured in delivery time of domestic and cross-border shipments in 2013 exceeded the performance objectives set by the Public Utilities Commission and the EU Postal Directive for delivery of 90% of all Class A regular mail on the next working day after lodging of the shipment at an access point to postal services. In 2013, Latvijas Pasts managed to stand by that delivery standard in 91.8% of cases involving domestic shipments and 94.3% of cases involving cross-border shipments, as can be seen from the local and international measurements of the company's quality of deliveries carried out by independent research companies. The quality measurements of Latvijas Pasts domestic mail deliveries are regularly conducted by TNS Latvia, one of the leading market, social and media research agencies in Latvia. In turn, the quality measurements of the cross-border deliveries are provided within the framework of the International Post Corporation through the intermediary of the research companies TNS, Ipsos and Quotas.

In 2014, Latvijas Pasts continues its efforts to implement the long-term plan for the company's growth, providing for improved mail tracking system on the Internet (track&trace) and development of automated letter and parcel sorting project, upgrading a number of places where postal services are supplied and continuing to gradually renew the aging fleet to ensure efficient mail delivery.

About SJSC Latvijas Pasts

Latvijas Pasts ensures the widest availability of postal services throughout Latvia by maintaining more than 600 post offices. The primary function of the company is provision of the universal postal service; Latvijas Pasts also provides commercial transport, express mail, payment, press subscription, retail and philatelic services. Latvijas Pasts is a wholly State-owned company with more than 4,200 employees.

Additional information:
Gundega Vārpa
Head of the External Communications Department
Phone: +371 67608505
Mobile phone: +371 26628729
E-mail: gundega.varpa@pasts.lv
twitter.com/latvijas_pasts; facebook.com/latvijas.pasts