Mail Volume Decline Impinges On BotswanaPost Revenues

By Tumelo Setshogo
Correspondent | Monday March 10, 2008 00:00

 

As reported in the prior year, there is a continuous trend of decline in mail volumes, affecting revenues. This threat to BotswanaPost's business has led to efforts to develop other products 'to exploit opportunities that could potentially breathe into the mail business.'

Major growth was reported in agency services (49 percent), philately (195 percent) and money transfer services (17 percent).

Despite the overall decline in mail services group of products, the EMS, box rentals and bags rentals, and bulk mail all posted impressive growth rates at 53, 62 and 22 percentage points respectively.

Direct operational costs leaped by 28 percent, the largest contributor being staff costs, depreciation, advertising, promotions and mail conveyance.

Staff costs are attributed mainly to remuneration enhancements that had to be made to retain BotswanaPost's competitiveness in the market.

An unexpected charge amounting to P2.7 million being impairment losses out of the revolution of fixed assets was incurred as a result of the application of International Accounting Standard (IAS) 16.

This pulled down what could have otherwise been better bottom line performance than the previous year significantly. 'This element was also the reason for the qualification of the accounts as the auditors were not satisfied with the use of internal resources to carry out the asset valuation,' the report says.

Meanwhile, BotswanaPost subsidiary Botswana Couriers has recorded 'a small profit of P257,000, a decline of 73.1 percent compared to the previous year'.

However, the company is confident that changes made in operational processes, human resources and other resource enhancements, 'Botswana Couriers will continue to shape into a formidable competitor in the courier market and post better results in the years to come.'

Currently BotswanaPost offers services such as mail services, hybrid mail, business centres, courier services, express mail, money transfers and agency services, among others.