NZ Post quits unprofitable Localist experiment 3 Apr 2014
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Budget provides $321m for RS&T activities News
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
NZ Post quits unprofitable Localist experiment to focus on core business, Kiwibank
By Suze Metherell
April 3 (BusinessDesk) – New Zealand Post, the state-owned postal service, has sold its unprofitable online directory Localist at a loss to focus on its ailing mail service and growth aspirations for Kiwibank.
Localist was set up in 2010 as both a print and digital play to tackle Yellow Pages, which was-financially distressed at the time and had been taken over by its lenders.
But the collapse in print market revenues hit Localist, chief financial officer Mark Yeoman told BusinessDesk. While breaking even on a cash-flow basis, Localist had yet to turn a profit, and had “become less of a priority” as NZ Post’s core businesses soaked up resource, he said.
Last year NZ Post said it was cutting staff numbers by as much as 2,000 over the next three years and scaling back physical mail deliveries in a bid to return its traditional business to profitability, while seeking growth by expanding Kiwibank’s wealth and insurance offerings.
“We’ve spent the last three years getting that focus and looking at Localist. While we were encouraged by the potential those digital services offerings they’re not quite in our core zone in terms of priorities for further investment,” Yeoman said. “It wasn’t an ‘invest-to-grow-to-sell’ strategy. It was something we thought was going to be one of the planks for New Zealand Post’s future digital service offering.”
NZ Post sold the business to chief executive Christina Domecq, who joined Localist last year when the directory company abandoned its print editions. Yeoman declined to comment on the value of the deal, citing commercial confidentiality, but said media speculation of an $8 million price-tag “is sort of there, or thereabouts.”
NZ Post recognised a $28 million impairment on its $30.9 million related-party loan to Localist in the 2013 financial year. Yeoman said the net write-off of Localist was less than $20 million, which some media had reported.
“We’ve had the benefit of some tax losses. Obviously when businesses operate at a loss we can offset tax that’s payable in other parts of the group,” he said.
Still, the Localist exit doesn’t mean NZ Post is giving up on other digital services, which it sees as meeting changing consumer demands and to improve its core business.
NZ Post’s iTry, an online try-before-you-buy sample website which connects potential customers with brands, also launched in 2010 and has 70,000 users, though there are no current sample offers available.
“Absolutely it’s still an alive and active site and there are more campaigns planned,” said Richard Trow, spokesperson for NZ Post. “One of the things we are looking to do is integrate it into the wider service offerings in some way.”
Other digital offerings from NZ Post include YouPost for bill payments and document storage online and YouShop, which provides customers with a USA mail address for items bought online to then be forwarded to their New Zealand address.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more