MAGYAR POSTA ZRT. LAUNCHES NEW PARTNERSHIP PROGRAMME

The Company’s new management is tasked with rationalising and modernising the organisation and laying the foundations for its cost-effective operation. Accordingly, three measures have been taken to help achieve these objectives while continuing to provide citizens with high quality services throughout Hungary.

13 February 2023

1. Developing a new Post Partner Programme
The Company has announced a new partnership programme that will enable an even larger number of local authorities, businesses, such as grocer’s shops, pharmacies and bank branches, and other partners to participate in operating postal services. In international practice, post offices in many countries operate in a similar way. This form of partner operation has already been tested through the involvement of 19 branches of the savings bank Takarékbank and 2 village grocer’s shops. Postal services will be integrated into shops in 220 small villages, which will be revitalised under the Hungarian Village Programme. Experience shows that this form of operation works efficiently and effectively for both customers and partner businesses.

The Company intends to transfer counter-related activities (bill payments, facilitating the posting of letters and parcels) to its partners, while delivering mail to the door will continue to be carried out by Magyar Posta.

Under the new partnership model, postal services can be provided in addition to existing business or service activities, thus increasing the customer base and revenue. This will also strengthen the retentive power of rural areas. The new partnership model enables residents of small villages to continue to use postal services locally, in some cases during longer opening hours than before. This means that several services can be provided quickly and efficiently in one place.

2. Decision concerning the operation of the postal network
The energy sanctions crisis affecting Europe has compelled countries and companies across the continent to introduce extreme measures to save energy, and Magyar Posta has not been spared from this either. At the end of October, the Company announced that it had been forced to suspend operation in 364 post offices by the drastic increase in energy prices. Intensive negotiations with local authorities led to an agreement to continue operating these post offices provided the municipalities concerned agreed to pay a fee specified in advance for the service of operating the post offices. This resulted in Magyar Posta Zrt. reversing the cessation of operation of a total of 45 post offices in 32 municipalities.

In view of the prolonged war and the energy crisis, the Company’s management has reviewed the possibility of the further operation of the post offices where operation was suspended. Customer habits have changed considerably over recent years, with fewer letters being posted and fewer bills being paid at post offices. Experience to date shows that the more than 2,200 existing postal outlets currently in operation are handling customer turnover adequately. It can be demonstrated that Magyar Posta Zrt. continues to significantly exceed its obligations by maintaining 2,200 postal outlets, as it has about 600 more post offices at the disposal of customers than required by law. This level of provision of postal outlets is outstanding at an international level, while the running costs of the Company remain significant due to the war and the energy crisis caused by sanctions. In the light of these factors, Magyar Posta Zrt. has decided that it is not possible to reopen those post offices where operation was temporarily suspended.

3. Operation under contract
Magyar Posta Zrt. continues to offer the possibility of and has renewed the conditions for operating post offices under contract. In such cases, the contracting party pays a fee on a commercial basis and the Company provides the postal services – at the location requested by the contractual partner – with its own employees and equipment.

Magyar Posta Zrt. will continue to do its utmost to provide a high quality service that caters for the needs of its private and business customers throughout the country.

Magyar Posta Zrt.