Downturn hits An Post revenue

An Post recorded a pre-tax loss of €25.6 million in 2009 as the economic downturn caused turnover to fall 5.4 per cent to €804.2 million.

Mail volumes fell 10 per cent over the year, while a pension-related charge of €20.5 million to cover the decline in asset values in the company’s pension fund in 2008 and Postbank 's €10.6 million loss also hit results.

Operating profit for the year was €5.7 million for 2009 with the slump in traditional mail offset somewhat by a rise in retail revenue.

The organisation said it will look to new sources of revenue, expanding its services further with a new mobile phone service Postfone that is due to be unveiled next month.

An Post's retail business performed strongly throughout the year, as demand for post office-based financial services drove growth. An additional €1.8 billion was invested in State savings products, which An Post adminsters on behalf of the National Treasury Management Agency, a range that is due to expand with the introduction of the National Solidarity Bond.

Chief executive Donal Connell described 2009 as a difficult year for customers, which was reflected in a downturn in mail volumes and revenues. As a result, the company had moved to cut costs, reducing operating costs by €20.3 million to €798.5 million.

"Despite very challenging trading conditions, we continued to invest in those parts of the business that will secure a profitable future for An Post in an increasingly competitive market," he said.