Unlike other developed countries, in which postal operators have actually turned into banks, with assets hunted by investors, CNPR’s main client is the Romanian state, also its majority shareholder, which generates one third of the company’s business. Toader expects €300 mln in turnover in 2007 and estimates a 30 percent increase in 2008, up to almost €400 mln.
“We distribute pensions, social assistance allowances. There are over seven million people in Romania who receive a social allowance. We distribute monthly pensions totaling €700 million. Thus, 27 percent of the Post Office’s turnover is generated by the Romanian state,” Toader told Business Standard. The company’s major clients include utility suppliers, banks, and all companies specializing in public relations. Profit was estimated at €25 mln in 2007, up from last year’s €15 mln level. “A reason for this profit, besides opening our company to the business market, is the fact that we abandoned all unprofitable services, optimized cashing-in operations, and targeted services for which there is market demand,” Toader added.
The Post Office raised fees by an average 40 percent in 2007. This increase includes the inflation rate and other costs, related to fuel tariffs for example, according to the company’s General Manager, who added that postal service fees in Romania are among the lowest in Europe.
According to the law, the Romanian Post Office may raise fees by a further 60 percent by the end of 2008. “However, I do not believe we will be forced to raise these. Higher productivity and market growth are sufficient to avoid unpopular fee increases,” Toader said.
