Samoa Post challenged by decline in traditional mail
The decline in the use of traditional mail services in Samoa has been described as a major challenge for Samoa Post.
Samoa Post Chief Executive Officer, Tupa’i Tupe Ualolo Nun Yan, outlined the key challenges facing the organisation in the Financial Year 2018-2019 Annual Report and pointed to the global trend of declining traditional mail services.
“Total volumes dropped by 20 per cent this year, accelerated by a small population for both the sending and receiving end of the postal business. The postal sector is persistently dependent on the performance of not only the international but domestic economy,” he states in the Report. “Inbound mails dropped by 41 per cent, with an emerging growth in outbound mails of 7 per cent, reflecting a competitive price structure for courier and parcel services, which are the cheapest in the market.”
Furthermore, the report states that the operations of district post offices has continued, but has incurred financial losses of $58,343 during the financial year, though the decision to operate the district post offices is considered to be Samoa Post’s social responsibility towards people in the rural areas.
According to the Samoa Post Chairman, Faavaeolemanu Ioane Tagata, the monthly and quarterly financial reports reflected an unstable performance throughout the year, with immediate changes having financial implications on this year’s outcomes.
“However, we fully support the management, in exploring all avenues for additional revenues, together with instant resolutions for changes, in response to urgent decisions sought from time to time,” he states in the annual report.
“The postal market is persistently exposed to changes, in respect to international postal regulatory framework, together with new operational requirements, demanded by international postal administrations that must be complied with.”
According to the report, revenue collected for the 2019 financial year was $2.01 million compared to $2.20 million the previous year.
“The huge decrease in commission earned from our private business partnerships, due to new operational requirements from international border security and tax collections; and newly introduced reporting structure in accordance with the International Reporting Financial System.”
In terms of dividends, the organisation paid $159,414 with its net profit after tax for F.Y. 2019 $516,778 which was a drop from $765,090 in the previous year.
The report further states that the shareholders’ equity was stronger with an increase of 12 per cent, due to an increase in retained earnings from other comprehensive income, with $3.05 million for the F.Y. in question an increase from $2.73 million the year before.