An Post said it was on track to make a profit this year, but admitted it would be three years before it achieved the regulator's target of delivering more than 90 per cent of mail the next day.
Speaking as the group released its results for 2006 yesterday, chief executive Donal Connell said that after recording a net profit of €75.7 million last year, thanks to a one-off gain related to the sale of a property on the Naas Road in Dublin, the company was on course this year to repeat that performance but without the expectation of such a substantial one-off gain.
On the matter of the group's consistent failure to reach ComReg's target of 94 per cent of mail being delivered the next day, Mr Connell said things had already started to improve in the first quarter of this year but that there was still a long way to go.
Last year the company lagged the target by 20 points.
This year a new target of 80 per cent has been set, and the aim is to achieve 90 per cent within the next three years, he said.
An Post recorded an 8.8 per cent rise in turnover to €818.8 million, boosted by an increase in mail being sent, more internet-generated postal traffic and strong demand for services such as BillPay and Western Union.
Operating profit before exceptional items fell 9.3 per cent, to €14.7 million after the group spent money renewing its vehicle fleet and improving security following a spate of attacks on post office branches.
An Post said it now has Government approval for its banking joint venture with Fortis, and plans to announce full details of the service, which is expected to offer a variety of products, including mortgages and credit cards, next week.
Mr Connell dismissed concerns that An Post was entering the market too late, saying "there is no question that it's a competitive market, but I think we are going to do well". An Post has invested €13.8 million in the venture.
The company is currently assessing the efficiency of its branch network and over the next year a "certain amount" of closures would be announced, Mr Connell said.
