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Omega United Inc. (OMGA.OB)
SkyPostal, Inc., based in Miami, Florida, is an international mail distribution company that specializes in offering hand delivery of commercial mail and periodicals to the Latin America-Caribbean
region (LAC).
Its stated mission is to provide customers with the highest standards of consistent and secure mail delivery through the use of innovative, logistical solutions and state of the art information technology. As one of the largest, private-mail networks in LAC, delivering mail from European postal organizations, major publishers, international mailers and financial institutions, SkyPostal utilizes a proprietary tracking system (PosTrac) that allows time-defined reliable delivery and provides clients with the ability to track both mailings and the company’s performance.
Capitalizing on a Dire Need
According to research based on mailing tests from Europe and the U.S., approximately one third of the mail targeted for the LAC never gets delivered. This is because public postal agencies in LAC, regulated by the Universal Postal Union (UPU, an agency of the United Nations) are beset by area-wide issues, like unreasonably high inter-country tariffs, or terminal dues, inefficiencies resulting from a lack of technology, and poor service as a result of absent government initiatives. As a result, most commercial mail delivered by private mail networks, the bulk of whose business is represented by company mailings (i.e., credit card bills, bank statements, advertising and direct marketing materials).
SkyPostal plans to capitalize on the weaknesses inherent in the LAC system, and European postal liberalization – which has opened the postal markets in many countries, to private competition particularly in Western Europe. The emerging pattern, which SkyPostal is using for a model, has these European countries entering into strategic alliances with cheaper and more efficient alternative mail delivery systems, called private postal operators. As a result of this liberalization, the opportunity now exists to consolidate the “last mile” of postal delivery; the actual hand delivery of mail.
- The Company has exclusive agreements in place with over 25 major private postal services in 20 different countries throughout the LAC region for the delivery of commercial mail, periodicals and parcel post.
- SkyPostal, through its acquisition of private postal markets and a share of the growing non-time critical parcel post delivery market, estimates future revenues in excess of $500 million.
- Operating margins increased from 17% in Q12007 to 24% in Q12008. EBITDA also improved 11% in the same time period.
- In 2004, LAC population exceeded 530 million, and received an estimated 11 billion items of mail.
- SkyPostal plans to target strategic acquisitions of wholesale mail consolidators in Europe, the UK and the U.S. as well as to develop and control its own private postal network thru the acquisition of some of its mail delivery partners in LAC.
- Phase two of the “last mile” consolidation rolls out SkyPostal’s GPS-based delivery technology, which will provide “Proof of Delivery” without the need for an actual signature.
Company website: www.skypostal.com
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