6 Aug 2010

NZ Post notes loss of contract

7:11 pm on 6 August 2010

New Zealand Post says the loss of a deal with TradeMe to a rival will not be the death knell of the business.

The state-owned postal operator this week warned its underlying profits will fall 7% to about $72 million in the year to June due to shrinking mail volumes and intense competition for Kiwibank.

Freightways recently announced an exclusive deal with TradeMe for a door-to-door courier service for customers buying and selling on the online auction site.

NZ Post chief executive Brian Roche says he would have liked to have won the work to further shelter the postal business from increasing competition.

However, he says the courier business still very strong and competitive.