Last year the turnover of Posta Romana fell 8.2% to RON1.2 billion, while losses rose 50% to around RON183 million, according to data published by the Finance Ministry.
“In the last five years the Romanian postal company has modernized around 200 post offices of its around 6,000,” officials said. This year, investments in modernization have been suspended as part of a cost-cutting move.
In May communications minister Dan Nica said the company will go bankrupt in the absence of restructuring measures. At present, Posta Romana is going through a restructuring of its activity.
“Given that revenues will not rise at a sufficient pace to help us attain our target (RON2 million profit this year), it is necessary to continue cost-cutting measures. This will unfortunately also mean cutting wage expenditures, which account for around 70% of operating costs,” said Dan Dumitrescu, head of the Public Relations Office and of the Chief of Staff of the General Manager.
According to the postal company, the revenue decline was caused by the lingering economic crisis, by people turning towards alternative services (banking transactions, online communications) and away from the services provided by the postal company.
Other factors are the steady decline in the number of pensions delivered by the postal company and the development of competitors operating on the same market.
Almost a third of the postal company’s turnover is accounted for by payment of pensions. The current general manager of Posta Romana, Ion Smeianu, is the company’s fifth in six years.
The Ministry of Communications (MCSI), majority shareholder of Posta Romana, wants to sell at least 20% in the postal company to a strategic investor, as part of commitments with the International Monetary Fund (IMF).
The Communications Ministry has recently published an announcement stating its intention to select a consultant of international reputation that would help it prepare and conduct the privatization process. The deadline for submitting the offers is September 10. The shareholders of the postal company are the Communications Ministry, with a 75% stake, and Fondul Proprietatea, with 25% of the capital.
The Romanian postal company had revenues of RON625 million in the first half of this year, down 3.5% year-on-year. Spending was down 6.8% to RON636M. The company’s gross losses amounted to RON11.5 million in the first half of this year, three times lower than in the same period of last year, according to the postal company. (EUR1=RON4.5364)
(English version by Daniela Stoican)