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12.08.2020
In 2019 the net turnover of Latvijas Pasts amounted to 96.2 million euro, thus exceeding the historically highest turnover indicator of the company for the third year in a row, according to the annual report of Latvijas Pasts for 2019, audited by the auditing company KPMG Baltics AS. Growth in modern consumption segments contributed to the most substantial increase in the revenue of Latvijas Pasts in 2019.
The net turnover of Latvijas Pasts in 2019 makes up the highest figure in its history: 96.2 million euro, and it is 7.1 million euro or 7.9% more than in 2018. Latvijas Pasts net turnover has been increasing for the third year in a row, starting from 2017, when it exceeded the previous historically highest turnover level of Latvijas Pasts for the first time – 67 million euro in 2008. In its turn, the net profit of Latvijas Pasts in the reporting period reaches 1.49 million euro.
“Latvijas Pasts made significant investments in strengthening future long-term development prospects and modernising services in the reporting period based on the current consumption trends. We see a partial return on these investments, for example, in the parcel locker services segment, already in 2020, when the turnover of Latvijas Pasts parcel locker network increased by an average of 40% in three months. Thus we have both diversified our services in accordance with the needs of our customers and at the same time demonstrated our readiness for market fluctuations caused by critical global situations,” Mārcis Vilcāns, Chairman of the Board of Latvijas Pasts, points out.
The most substantial increase in revenue of Latvijas Pasts in 2019 compared to 2018 is observed mainly in modern service segments: postal parcel items – by 28.6% or 6.5 million euro, express mail – by 5.4% or 0.3 million euro and the Postal Settlement System services – by 3.4% or 0.15 million euro.
During the reporting period the volume of Latvijas Pasts transit services, which are ensured by Latvijas Pasts delivering items of the world’s second largest trading platform Alibaba from China to various recipient countries, has also increased. In 2019 Latvijas Pasts handled 50 transit cargo aircraft. After the end of the reporting period, in January 2020, Latvijas Pasts accepted already the 100th postal item transit cargo charter aircraft. The inbound postal item transit cargo of Latvijas Pasts in the structure of the cargo handled by Riga International Airport accounted for 6.7% in 2019, thus positively influencing the overall transit structure in Latvia.
2019 was an essential turning point in the development of Latvijas Pasts, marked by taking a decisive step towards modern business and becoming the widest and most branched item delivery network at the Baltic scale. In Q3 2019 Latvijas Pasts purchased a network of 61 postal terminals, significantly expanding the service options of Latvijas Pasts and providing item delivery to customers at post offices, by postmen and couriers, at Circle-K fuel stations as well as through parcel lockers across Latvia. The year 2019 and the time after the end of the reporting period have involved active work to improve the service and technological capabilities of the parcel locker network, and to expand the capacity of the lockers and modernise them. Since March 2020 the demand for Latvijas Pasts parcel locker services has increased significantly, growing by 40% on average.
A significant prerequisite for the further development of Latvijas Pasts is also the draft amendments in the tariff structure of the universal postal service approved by the Public Utilities Commission in Q4 2019, which improves the provision of postal services based on moderns requirements and simplifies tariffs. According to this decision made in the reporting period, as of the 1st of January 2020 Latvijas Pasts introduced a simplified system where only three factors affect the tariff of any item to be sent: the item weight, whether the item is ordinary, registered or insured, and the geographical zone to which the item must be delivered. In addition, if the customer processes the item himself or herself at the self-service website of Latvijas Pasts https://new.manspasts.lv/, the tariffs for sending registered and insured items are lower.
In 2019 Latvijas Pasts was actively making efforts to improve the convenience, customer care and accessibility of services, as well as to create a service offer corresponding to modern consumption. Latvijas Pasts started offering redirection of registered – signed for or insured – postal items to another address using the mobile app of Latvijas Pasts. Customers – both private persons and legal entities – can remotely redirect any registered postal item using their mobile gadget to another destination of their choice within the Republic of Latvia, changing the original delivery address indicated on the item. Already after the end of the reporting period, in January 2020, Latvijas Pasts expanded the functionality of its mobile app even further, offering to forward the item to any of Latvijas Pasts parcel lockers in accordance with the current range of services.
Ensuring the provision of a significant part of customer services in the digital environment, while avoiding duplication of functions and waste of paper resources, Latvijas Pasts also delivers invitations for the receipt of items to customers in the form of mobile text messages. At the end of 2019 invitations delivered as mobile text messages to Latvijas Pasts customers accounted for 67% of the total number of invitations for receipt of registered items. In the spring of 2019 Latvijas Pasts completed an extensive technological modernisation project of the postal network, equipping all post offices with modern cash register systems, new payment card terminals and devices which ensure the electronic signature of customers for receiving registered items. With the new systems, the overall speed of service provision and data processing has improved several times, at the same time ensuring higher protection against external risks. In turn, the latest generation payment card terminals in all post offices allow making payments with contactless payment cards not only in cities, but also in the most remote regional post offices, creating equal service for all customers, regardless of location.
Eksprespasts of Latvijas Pasts was once again recognised as the best express mail service in the world in 2019 among 198 competing member countries of the Express Mail Service (EMS) Cooperative of the Universal Postal Union. It was awarded the gold level quality assessment and the first place. The performance of express mail delivery services in the EMS companies worldwide is evaluated on an annual basis by the international auditing firm PriceWaterhouseCoopers, and Eksprespasts of Latvijas Pasts received the highest ranking across all quality indicators analysed.
Setting up a modern Customer Centre with customer-friendly service principles and a contemporary infrastructure, in Q2 2019 Latvijas Pasts made a transition to a single infoline phone number, ensuring identical customer service standards across the country, comprehensive identification of customer problems and issues, as well as their record-keeping and analysis. Along with the modernisation of the Customer Centre, remote customer service tools – phone calls and mobile text messages, e-mails and social network messages – are serviced in one place, thus enabling the understanding of the issues related to postal services which are essential to customers throughout Latvia, finding and assessing the causes of deficiencies and providing proper assistance to customers.
In 2019 Latvijas Pasts obtained a licence for operation as a payment institution from the Finance and Capital Market Commission. During the reporting period Latvijas Pasts managed to attract new customers to its financial services – nearly 10,000 new accounts were opened in the company's Postal Settlement System during this period. The accounts are used to receive salaries, pensions and other payments, to make transfers to accounts open with post offices or credit institutions in Latvia and abroad, to deposit and withdraw cash from one’s account and to pay bills.
After the end of the reporting period, in order to contribute to the prevention of infection by COVID-19, international passenger transport between most countries was suspended or restricted in Q1 2020, significantly delaying further exchange of postal items with foreign countries and prolonging route planning and delivery time. Deliveries are also delayed by congestion and queues at international transit airports, from where they are forwarded to other recipient countries.
Meanwhile Latvijas Pasts continues to work actively to modernise its services, improve customer care, increase quality and implement modern solutions, paying special attention to ensuring profitability, optimising work organisation, automating and digitising processes and saving natural resources. At the same time it is planned to continue paying a lot of attention to the positive shaping of the employees’ work environment, the improvement of the remuneration system and the creation of a competitive motivation system, which will contribute to the achievement of the company’s overall objectives.
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 over 3,400 employees. The quality measurements of Latvijas Pasts domestic mail deliveries are regularly conducted by Kantar TNS, 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 Kantar TNS, Ipsos and Quotas.
Additional information:
Gundega Vārpa | Head of External Communications
E-mail: pr@pasts.lv; gundega.varpa@pasts.lv
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