Corona implications: Israel Post lost in the 2nd Quarter NIS 163 million

The corona hits Israel Post: In the first half of the year, the company lost NIS 163 million. The corresponding period last year, the postal company lost NIS 13 million.
The company's report in the second quarter is published against the background of the process of privatizing the company and selling 20% ​​of its shares to an external investor.
The company's revenues decreased by 18% compared to the corresponding median, and stood at NIS 744 million. However, the cost of revenue decreased by only 6% and therefore the company ended with a gross loss of NIS 66 million, compared to a gross profit of NIS 46 million in the corresponding half. Selling and marketing expenses in the first half were cut by 50% compared to the corresponding half and amounted to NIS 5 million. The company shows an operating loss of NIS 117 million, compared with an operating loss of NIS 9 million in the corresponding half.
The company presents a negative EBITDA of NIS 41 million, compared with a positive EBITDA of NIS 629 million in the corresponding half. The company's financing expenses increased by 56% compared to the corresponding median and stood at NIS 50 million. On the other hand, financing income in the median was NIS 7.7 million, a decrease of 76% compared to the corresponding median.
 The net loss in the second quarter of 2020 was NIS 58 million, compared to a net loss of NIS 18 million in the corresponding quarter. The company's revenues in the second quarter decreased by 24% compared to the corresponding quarter and stood at NIS 339 million. The gross loss amounted to NIS 39 million, compared with a gross profit of NIS 17.7 million in the corresponding quarter. The company shows an operating loss of NIS 62 million, compared with an operating loss of NIS 11 million in the corresponding quarter. The company also shows a negative EBITDA of NIS 24 million, compared with a positive EBITDA of NIS 24 million in the corresponding quarter.
The company, led by Danny Goldstein, notes that "e-commerce and postal bank revenues have dropped significantly as a result of the decline in consumption since February 2020 due to the corona virus and the small number of trips abroad, and even traditional mail continued to decline in the middle." "For 21 million packages, compared to about 30 million in the corresponding half, a decrease of about 30%. The company also notes that there has been a decrease of tens of percent in the purchase of foreign currency and rechargeable tickets at post offices, as opposed to an increase of tens of percent in the field of Israeli couriers and trade.