In Stunning Turnaround, Israel Post Shows Profitable Second Quarter

YERUSHALAYIM -
Mailboxes at the Central Post Office in Tel Aviv. (Moshe Shai/Flash90)

The Israel Post corporation had its most successful quarter in several years during the second quarter of 2018. Profits were up NIS 8.4 million over the previous year, a major turnaround from the situation in the second quarter of 2017, when the company lost NIS 0.9 million. In the first six months of 2018, the Israel Post earned NIS 38.1, compared to a loss of NIS 1.66 million during the same period in 2017.

The main reason for the turnaround has been the sharp increase in online purchases by Israelis. Many local retail outlets now offer home delivery for ordered goods via the Israel Post, while all parcels sent by mail from abroad are delivered to homes and offices by the company.

Israel Post CEO said that “the increase in income from on-line deliveries was very high, enough to offset the continuing losses from delivery of traditional mail. In expectation that the volume of deliveries will continue to rise, we have since the beginning of the year opened dozens of new package distribution centers. We have continued to invest in the engines of growth for the company, including package delivery, the Postal Bank, and improving service.”

The Israel Post is wholly owned by the government, which has been seeking outside investors to buy at least 10 percent of it. Analysts told Globes that the latest positive report would make it much more likely for the corporation to tempt private investors, which has undergone significant changes in recent years to make it more efficient and profitable.