Israel Postal Company finally makes a profit

After years of losses when it was the Postal Authority, the Israel Postal Company reported net profits for 2007 of NIS 40 million.

By JUDY SIEGEL
April 2, 2008 10:39
1 minute read.
Israel Postal Company finally makes a profit

new postal logo 298 88. (photo credit: )

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

After years of losses when it was the Postal Authority, the Israel Postal Company reported net profits for 2007 of NIS 40 million on Tuesday. Avi Hochman, the director-general of the for-profit government company, praised management and staffers for their achievements, saying, "This is an impressive success, according to any criterion, in view of the crisis of the past." In 2007, the company had gross income of NIS 1.8 billion. In the past, as a state authority, it lost hundreds of millions of shekels annually, forcing the government to make up the difference. In 2006, the then-authority lost NIS 19m. The business orientation of the new company, which was launched last year out of the authority, was responsible for the profits, Hochman said. It now offers many new services and provides existing services on a higher level, he said. As postal rates were last raised in November 1, the next annual report should show even higher profits, Hochman said. This was the case, he said, even though the company is bound to provide universal mailing services, including delivery to peripheral areas where there is little or no profit. The company's Postal Bank - with its 700 offices in postal branches around the country - would become a "growth engine" in the future, Hochman said. It brought in NIS 307m., or 18 percent, of company income last year, he said, adding that it must receive a commercial license soon to compete with the commercial banks. Last year, the Israel Postal Company invested large amounts of money in computerization and advanced technological developments to improve its services, Hochman said.

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS