Irish postal operator An Post has announced that it has had increased profits and revenues for year end 2016. Its Annual Report registered a profit of €8.6 million against €3.3 million in 2014.

Group revenue increased from €81.4 million in 2014 to €826.1 million in 2016.

Mail volumes continued to slide, and are now down 35% from their peak in 20007. An Post also claimed that it incurred losses of €32.3 million in delivering its Universal Service Obligation compared to €38.2 million in 2014. In a statement the operator said, “This is an ongoing matter of concern despite having been reduced from a €67.3m loss in 2012.”

The company added, “In 2015 mails revenue totalled €526.2m, up €4.9m (1%) on the prior year. Retail revenue totalled €164.3m, marginally down from €166.1m in 2014, due mainly to a fall in the volume of social welfare benefit payments distributed on behalf of the Department of Social Protection.”

Commenting on the 2015 results, Chief Executive Donal Connell said, “Profit of €8.6m, compared to €3.3m in 2014, is significant in that we maintained our profitability in the face of a mails volume decline of 2.9%.  Group revenue continues to be very satisfactory at €826.1m.

“Our strategy of implementing appropriate pricing and cost efficiency measures in the core business while maintaining high standards of service quality, product innovation and diversification has to-date enabled the Company adequately cope with unprecedented threats and challenges.

“However, the medium and longer term issues of safeguarding the USO and sustaining a realistic, high quality Post Office network now require urgent discussion with all Stakeholders, so that the core Company can achieve the necessary level of profitability to ensure its fiscal stability.”