Romanian Post expects 95% profit drop

The Romanian Post estimates a 95.7% drop in its gross profit this year, to EUR 360,000, as the operator has an investment budget of EUR 12.3 million. Its total revenues will decrease by 1.4% to EUR 265 million, and the expenses will go up by 1.7% to almost EUR 264.7 million, according to the company’s budget draft that awaits the Government’s approval, reports local Hotnews.ro. The company expects that the number of employees will reach 24,950 at the end of the year, down 290 compared to last year. However, the personnel expenses are expected to increase by 4.2% compared to 2014, due to the wage increase operated at the end of 2014. The Post’s representatives also said they expected higher revenues from the company’s core activity. In 2014, the Romanian Post recorded a net profit of EUR 5 million, after five years of losses. The Romanian state controls 75% of the Post’s shares, with the remaining 25% held by investment fund Fondul Proprietatea. editor@romania-insider.com