For the six months ended 31 March 2011, MaltaPost p.l.c. registered an increase in revenue of 1.4% to €10.7m (2010: €10.6m) but a decline in profit before tax of 9.3% to €1.7m (2010: €1.9m). Profit after tax decreased by 6.1% to €1.1m (2010: €1.2m).

The main contributors to this performance, in comparison to the same period last year, are as follows:

 The increase in revenue was principally due to increases in international inbound and outbound mail traffic volumes. These were partially set-off by the continued downward trend of traditional mail volumes. Other non-postal revenue streams steadily increased over last year;

 Employee compensation and benefits increased marginally by 0.9% to €5.1m;

 Other operating costs rose by 9.2% to €3.7m. This is the result of higher mail costs, utility bills and Information Systems support costs;

 Finance income increased by 24.2% as a result of a gain on the sale of certain investments held in the Company's portfolio. This was, in part, set-off by lower interest income;

 Property, plant and equipment increased by 41.7%. A property was purchased to house a postal museum and additional improvements were made to the branch network as well as the Head Office building.

Shareholders' funds increased to €22.5m from €21.0m as at 30 September 2010, principally as a result of a good number of shareholders opting to take the 2010 dividend in shares rather than cash.

In line with global postal trends, the Company experienced a decrease in volumes of traditional letter mail. However the number of "packets" received remains positive as a result of increased e-transactions.

While MaltaPost continues to strengthen its non-postal activities by the provision of enhanced services, it will remain sensitive to its role as the country's key postal operator and this by providing traditional postal services to the community, irrespective of their financial viability. In this regard the Company will continue with its branch upgrading programme, rebranding exercise and investment in expansion of further non-core activities. These initiatives are bound to increase costs in the short term, but, of course, will provide the necessary platform to meet future challenges.

The Board of Directors is therefore confident that, together with its Management and Staff, the ground lost during the first half of the year will be, as far as possible, gained in the coming months.

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