Israel Postal Company increased it's revenues by 11% to NIS 827 million

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by Ifi Reporter Category:Start Up Aug 26, 2021

The Israel Postal Company published its financial reports for the first half of 2021. The company's revenues increased by 11% to NIS 827 million, compared with NIS 744 million in the corresponding period last year.
The company reports that most of its revenue is due to a recovery in online commerce and a return to the volume of orders similar to the period before the corona. This is while traditional mail continues in a downward trend: Revenue from letter sending and retail operations of the company recorded a 5% decline following the transition to the use of digital means. Postal bank activity remained stable.

The losses in the first half of 2021 amounted to NIS 64 million, compared with a loss of NIS 163 million in the corresponding period last year. According to the company, the reason for the high losses lies in the universal obligation of the post office, which obliges it to provide services and distribute the mail throughout the country.
Hezi Zaig, chairman of the company's board of directors, explains that “without the obligation of universality, Israel Post would have returned to profit in the first half of the year, despite the challenges of the corona. This is a non-economic service that requires a state subsidy, as other companies around the world receive. The service involves a huge expense that harms profitability over the years and produces a loss of NIS 150 million annually for the company. "
Zaig adds that the company is continuing its plan to privatize Israel Post and sell 20% of it to an investor, and that in recent months the company's senior executives have met with groups of investors who have expressed interest.
The corona continues to affect the company's revenues in two ways - a slowdown in outbound trade and a decrease in travel abroad, which causes a decrease in the purchase of foreign currency and the sale of rechargeable tickets.
In contrast, in the last half there was a 32% increase in orders from abroad compared to the first half of 2020. From January to June 2021, 25.2 million packages were ordered from abroad, compared to 19.1 million in the same period last year. The weight of the packages increased by 55% and stood at more than 9,000 tons.
Danny Goldstein, CEO of Israel Post, says that e-commerce activity has strengthened thanks to cooperation with a major player in the field. In addition, the company has implemented in the middle a automatic sorting machine that allows sorting of up to about 6,000 packages per hour, significantly reduces manpower and increases work outputs, "Goldstein explains.
Israel Post also reports an improvement in the waiting times of the company's customers for an average of 7 minutes - after launching "Queue in a Click" in January, a pre-booking service that it claims shortened waiting times and congestion. The company reports that 57% of consumers who came to the post office to receive a service ordered an appointment in advance, compared to 6% last year.
Last week, the Ministry of Communications reported that it conducted an inspection of dozens of branches and found that in 33 of them, exceptional waiting times were recorded, but the post office emphasizes that this is about 5% of the branches out of 600 throughout the country. In addition, it was stated that these are areas of underprivileged populations, which have difficulty operating digital services and therefore require learning and assistance actions, which the company takes in front of the public.

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Moshe Strugano
Moshe Strugano / Apr 18, 2019

Thanks for sharing the information.

Moriah
Moriah / Dec 17, 2018

I seriously can't believe this! They can't even function as a normal postal service. A friend of mine went out of business because he couldn't deliver his products in a timely or correct manner due to our inferior post. I've had packages returned without even being notified that I received them. I have also had things delivered 6 months after sending. They need to get organized before they start any new ventures.

John Glucker
John Glucker / Dec 14, 2018

I thought the main task of postal service is to deliver letters and parcels within reasonable time. Delays in delivery in Israel have become almost an accepted norm. Last week I received a letted which had been sent to me (in Kfar Saba) from Tel Aviv A MONTH EARLIER. A registered letter I sent from Tel-Aviv took three weeks to reach Natania. Thus we are paying through a disastrous performance of the post office's basic task for some grandiose startups and commercials. I can on as many people as possible at least to register their protest.

Uzi lowenthsl
Uzi lowenthsl / Dec 14, 2018

Suggest that the postal authority in Israel get its own house in order first

Gary Dalin
Gary Dalin / Dec 12, 2018

Going for the moon while miserable at delivery in the final kilometer. The PO has strangled ISRAEL with “letter boxes” of 100 years ago of the Mandate Period. They know nothing about the US format of mail boxes which can accept packages. By converting this hardware, it will save 8.5 million Israelis from being required to spend an hour and travel at a post office. Please have someone at the PO administration call me for a demonstration to prove how it can save the country millions and turn around the entire system of package delivery. The country needs this desperately! 062-238-1414

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