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Post of Russia’s net profits in 2011 estimated at 700-750 mln roubles

The company’s operating earnings will amount to 120 billion roubles, or about 14 percent more than in 2010

MOSCOW, February 28 (Itar-Tass) —— Russia’s biggest provider of postal services, Post of Russia, expects that its net profit in 2011 will be in the range from 700 to 750 million roubles, or up on 480 million roubles in 2010, according to preliminary results of the company’s performances in 2011.

The company’s operating earnings will amount to 120 billion roubles, or about 14 percent more than in 2010. “Postal services account for 45 percent of these earnings, financial services – for about 38 percent, and sales of other types of services and goods – about 17 percent,” the company said in a release.

“Preliminary results of 2011 prove that Post of Russia has gained in positive dynamics of financial standing. Moreover, the company expects that dynamics of proceeds from its core activity – postal services – will outpace that of overall earnings, for the first time in the past few years,” Post of Russia said. Thus, proceeds from postal services are expected to grow by 12 percent on 2010, on the background of global downwards tendencies. First-class mailings grew by 81 percent.

Post of Russia’s proceeds from financial services grew by approximately 16 percent in 2011. “This result was achieved thanks to the growing number of pensions and other social allowances paid via post offices, and thanks to bigger proceeds from housing and utilities payments. The number of contracts for other types of payments also grew by 5,000,” the company said. One of the services enjoying the highest demand is money transfer.

Proceeds from the sales of commercial goods and services grew by about seven percent in 2011 as compared with 2010, mostly thanks to an 11-percent growth in incomes from retail sales.

Post of Russia’s investment expenditures in 2011 will amount to eight billion roubles, the bulk of funds in 2011 were spent to finance modernization and overhaul of logistics facilities and post offices (62 percent).

“In all, preliminary results of the company’s activities in 2011 prove the efficiency of the policy of modernization and development of new services,” the document concluded. In 2012, the company plans to invest still more in the overhaul of its logistics base and to promote most profitable types of activity. Post of Russia also plans to begin the realization of its development strategy for the years 2012-2016.

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