The Israel Postal Company recently published its financial results for the third quarter of 2020, following the approval of the Company’s Board of Directors. The company’s revenues in the third quarter of 2020 decreased by about 11% and amounted to about NIS 400 million, compared to NIS 448 million in the corresponding quarter last year. In the first nine months of the year, the company’s revenues decreased by 15.6% and amounted to NIS 1.14 billion, compared with NIS 1.35 billion in the corresponding period last year.
The loss in the third quarter was NIS 67.9 million, compared with a net profit of NIS 41.7 million in the corresponding period last year. In the first nine months of 2020, the loss amounted to NIS 230.7 million, compared with a net profit of NIS 28.6 million in the corresponding period last year.
God-EBITDA In the third quarter, it was negative and stood at about NIS 24 million, compared to EBITDA Positive of about NIS 94 million (about 20% of revenues) in the corresponding period last year. God-EBITDA In the nine months, it was negative and stood at about NIS 65 million, opposite EBITDA Positive of NIS 156 million (approximately 11.5% of revenues) in the corresponding period last year.
Israel Post has one series of bonds issued at the beginning of 2010 in the amount of NIS 400 million, with the last payment to be made in 2021. As of today (after the payment of October 2020), the balance of the debt, including interest and linkage, is approximately NIS 44 million.
Hezi Tzaig, Chairman of the Israel Postal Service Board: “One of the complex challenges this year was the continuation of business management against the background of the Corona epidemic, which is now clear to accompany us in the coming year as well. The corona significantly affected the revenues of the Israel Postal Company, which are based on online commerce and financial services, based on the extensive branch deployment. The corona has affected all areas of global logistics and trade, an impact that has been reflected in a global slowdown in flights, a slowdown in inbound and outbound trade, and a consequent decline in banking activity, resulting in a slowdown in household consumption, business activity and a halt in foreign travel. .
“However,” says Zaig, “we are seeing a recovery in the third quarter, when online shopping has returned since last June, given the second closure in September, and the fact that until now street shops and malls were closed and chain purchases were the main option for ordering products.”
Zaig added, “In the third quarter, the process of selling 20% of the mail shares for the privatization of the company began, and despite the corona, we are optimistic. We see the expression of confidence of the many investors who approached the tender to acquire the company, who came from the fields of trade, retail and the capital market. This response illustrates how attractive this investment company is during this challenging period, when the sale process will be completed during 2021. The investment of the investor in the company will allow us to continue to invest in technology and innovation for the benefit of the public, and to grow our business into the next decade. “
Danny Goldstein, CEO of Israel Post: “The decline in trade revenues following the corona is beginning to moderate, we see a gradual recovery in online trade orders in Israel and abroad in the third quarter, which is intensifying in international shopping days. In November and December, we are expected to sort and absorb a record number of about 15 million packages from abroad, with an expected weight of about 4,000 tons, which is an 11% increase in weight compared to the same period last year and an increase of 3.5% in the number of items. This is a very positive trend, which indicates a return to routine in the field of online shopping. “
“In the field of couriers, we are seeing an increase compared to the corresponding period last year, against the background of the growth of Israeli online commerce during the Corona period, and an increase in awareness of ordering deliveries to the home. ‘
Goldstein added: “Along with the deployment, we continue to invest in additional services that will support the various communities. We believe that the fourth quarter of 2020 will be the beginning of the turning point for a return to profitable management. “