Postal Company profit: NIS 29.7 million

The Postal Company went into profitability in the first quarter of 2018. The company earned NIS 29.7 million, compared with a loss of NIS 0.7 million in the same period last year. Revenues amounted to NIS 460.1 million, a slight increase of 1.4% compared to NIS 458.4 million in the same period last year.
The increase is mainly due to continued growth in the field of online commerce, which grew by 44.5% in revenues compared with the corresponding quarter.
The number of packages continued to grow in the quarter, totaling 14.5 million packages, compared to 12.6 million in the same period last year. In the first quarter of 2018, revenues from quantitative mail and receipts at the Postal Bank continued to decline,
Following the transition to digital services and e-mail accounts. The growth engines succeeded in covering the decline in the area of ​​universal activity, which indicates a business focus.
In the first quarter of the year, a multi-currency prepaid card was launched by the Postal Bank, which includes 3 currencies (Euro, Pound and Shekel), enabling shopping in Israel, including use of online trading sites and for use in Europe.
In the first quarter of the year, the company also announced a partnership with the Paz Oil Company, whereby the Company's customers will be able to order packages for thousands of automatics installed in 120 Paz stations throughout the country.
 The cost of sales in the first quarter increased by 1.4% and amounted to NIS 424 million, compared to NIS 418 million in the same period last year. The change in the cost of sales stemmed mainly from the continued investment in improving the service, as well as from expenses for the opening of packages delivery centers and postage and marketing of the card that was launched during the quarter.
Operating profit increased in the quarter to NIS 42.8 million, compared to NIS 11.4 million in the corresponding period last year.
EBITDA in the quarter rose to NIS 72 million (15.7% of revenues), compared with NIS 41 million (8.9% of revenues) in the same period last year.
 
 
Danny Goldstein, CEO of Israel Post: "In the first quarter of 2018, we continued to focus on improving service,
While continuing to open packages delivery centers and registered mail items for the benefit of the public, as part of our preparations for an increase in orders from overseas and in order to simplify and streamline complex logistics processes.
As at the end of the first quarter of 2018, the company had 1,200 postal and package delivery points, of which 466 were delivery centers,
Which reduced waiting times at the company's branches.
In addition, we continued to invest in the company's growth engine, while streamlining operations both in processes and in reducing real estate.
As a result of these investments we have seen the rapid development of online trade and the new products launched by the Postal Bank.
Finally, we are preparing to unify the operating system in Modi'in at the end of 2018, saving tens of thousands of meters of real estate."