State-owned postal service Ominva has reported losses of close to €700,000 in the first three quarters of 2022 inclusive.
Omniva, formerly Eesti Post, said Russia's invasion of Ukraine was a major factor in the result, since much of its international services and therefore revenues were dependent on the regions affected by the crisis.
To mitigate losses, Mart Mägi, Omniva board chair said: "We have re-pointed our operations within the international transit services business and are focusing on new markets, where we hope for a gradual recovery of volumes."
"In order to offer a fast and environmentally friendly service, we are expanding and updating our parcel machine and postal network across the Baltics and investing in new technology," he went on.
The group posted losses of €699,000 January to September this year, with rising fuel and energy prices and lowered consumer confidence also cited as causes.
Transportation has been optimized and fewer new employees have been hired this year than was initially planned, the company says.
Revenues totaled €91 million, a 16 percent fall on the first to third quarters 2021 inclusive.
Revenues fell in all service groups, with the largest experienced in international transit services. Business expenses totaled €91.7 million, falling by three percent over the year.
Omniva says it will install 267 new parcel machines across all three Baltic States and has installed nearly 40 of these in Estonia alone, so far this year. A virtual parcel delivery service to Estonia's smaller islands began this year also.
While the company did not cite this factor, recovery from the pandemic may also be a cause of the losses due to a fall in e-commerce and similar activities as coronavirus restrictions started to be lifted in spring.
Editor: Andrew Whyte