Postal volumes are falling at New Zealand Post.
Profit for the State-owned service in the six months to December was flat, at $52.8 million.
The volume of postal items was down by 6%, but chief executive John Allen expects that to improve when economic activity picks up again
Previous half year results showed mail volumes have been falling annually by between 3% - 5% per annum.
Mr Allen says the company needs to look at the number of people handling mail, as well as the location and collection from mailboxes.
Post Shops are seeing fewer customers, but Mr Allen says courier joint ventures were performing well, due to retailers stocking less inventory and moving to "just in time" deliveries.
Mr Allen says many postal companies overseas are examining their operations and so is NZ Post.
The drop in income from mail was offset by profits at KiwiBank.
NZ Post will cut its dividend to the Government, from almost $17 million to $6.9 million, to reinvest in the business.
It is also raising $150 million of which $75-million will be used to repay debt.