Guernsey Post's profits are up despite the total mail delivered in the Bailiwick being down.
The company has announced it is operating at a £1.4m profit which has been helped in the last year by improvements in customer choice, parcel deliveries and the introduction of electric vans.
Guernsey Post says profit is up 8% on last year, with the turnover increased by 2% to £30.7m.
Bosses say there has been a "strong growth" in the number of parcels processed by the service, which has helped to counteract the decline in letter volumes.
Improvements have also been made to the company's Safeplace service, where customers can attach a small tag to their letterbox for postal workers to scan if they are not home to take their delivery.
The tag then informs the postal worker of a secure place for them to leave the parcel.
A dividend of £560,000 will be paid to the company's Stakeholder, Guernsey States, along with a "special dividend" of £500,000.