Business | Economy
Diversification increases Emirates Post profit 20%
Emirates Post yesterday reported a 20 per cent growth in net profit to Dh190 million last year over the previous year, according to an official statement.
- Staff Report
- Published: 22:52 February 4, 2008
Dubai: Emirates Post yesterday reported a 20 per cent growth in net profit to Dh190 million last year over the previous year, according to an official statement.
Sultan Bin Saeed Al Mansouri, Minister of Governmental Sector Development and Chairman of Emirates Post Holding Group, said the net profit of Dh190,258,653 reflected the group's continuing pursuit of business diversification and excellence in delivery of services.
"The year saw increased mail volumes and introduction of new postal and non-postal services at post offices. Emirates Post Holding Group continued to show dynamism and innovation in a highly competitive environment, serving as a model for other public sector companies. The group has entered a new era and the years ahead will see it reaping the fruits of a carefully planned business strategy," he said.
Abdullah Al Daboos, president of Emirates Post, said the establishment of the holding company under Federal Law No. 14, 2007, has set the foundation for evolving into a major business entity under the Ministry of Governmental Sector Development. Emirates Post, the postal corporation, has thus become one of the subsidiaries of the holding group.
He said the highest ever net profit of over Dh190 million was the result of a strategic plan that was driven by diversification, new alliances and acquisitions.
Al Daboos said that the postal network continued to expand during 2007, when many new services were added to the Emirates Post portfolio.
The mail and parcel volumes rose by 10 per cent. Overall mail volume in 2007 stood at 258,808,231, against 233,767,518 in 2006, with a daily average of 715,545 pieces.
Al Daboos said over Dh277 million has been allocated for construction projects in 2008. Among the projects already nearing completion is a new purpose-built postal operations hub at Ramoul.
Among the highlights was the memorandum of understanding signed with Noor Islamic Bank to launch banking services for the low-income segment. Also, Emirates Post and its subsidiary Wall Street Exchange began disbursing workers' salaries through post offices and mobile units.
The board of directors has approved the group plan to launch postal business centres across the UAE and GCC in the next phase, in partnership with leading business groups.
A new addressing system being developed in association with other departments has also been approved. The board also reviewed plans for an initial public offering. It also approved the new employee rules for the holding group.
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