Jersey Post turnover down 22% to £34m
Jersey Post's strained finances stabilised in the first full year since island companies stopped being able to ship tax-free goods to UK customers.
Until April 2012, a loophole allowed UK consumers to buy goods such as CDs and DVDs free of VAT from Jersey firms.
Turnover at the States-owned company fell by a fifth to £34m, but net profits were broadly the same at £1.3m, according to the 2013 annual report.
Two post offices closed and the average cost of an employee fell to £39,000.
Outgoing chief executive Kevin Keen, whose salary fell 1.4% to £137,000, said the results were "all the more credible" given there was no stamp price increase in 2013.
Incoming parcels, often from online retailers, now account for 40% of Jersey Post's revenue.