Australia Post has delivered a $222m loss for the FY 2015 with most of the damage coming from its letters division, sending the monopoly looking to expand into Asia and parcels for its future growth.
Ahmed Fahour, CEO, Australia Post
The monopoly mail carrier has turned last year’s $116.2m profit into its first full loss in more than 30 years as the mail division lost $381m, with its revenue stable at $6.37bn. Australia Post says it is contemplating a parcel expansion into Asia, beginning with a joint venture to deliver Australian goods to China. Speaking of particular opportunities in Japan and Singapore, Ahmed Fahour, Australia Post CEO, says, “We are focused on growing our e-commerce business to everyone. We will not just focus on the domestic market but also particularly the Asian opportunities in front of us.” This means far more involvement in Asia than Post’s first venture, which saw it lock a deal with e-commerce giant Alibaba, which draws more Australian retailers to the lucrative Chinese market through the online platforms. Fahour says more competition is good for the consumer despite it threatening company closures. “In many ways, Australian goods for global consumers are 40 per cent cheaper today than only a couple of years ago,” he says. “The last time this happened, we saw our export volume double. Interestingly, in the last 12 months, parcels, specifically into Asia, have doubled.” The mail carriers annual report is due out mid-October however Post in a statement says that addressed letter volumes fell 7.3 per cent, with ordinary stamped letters falling by 10.3 per cent. While the company’s own research shows the effectiveness of direct mail and consumer preference for mail, Fahour attributes the decline to Australians switching to digital alternatives. Fahour says, “We continue to make headway with reforming our letters business and we are investing in the infrastructure and digital capabilities – vital to servicing the changing needs of our customers. “We are confident we have the resources, infrastructure and support in place to manage the ongoing transition of our letters business as we become a more e-commerce-centric organisation.”
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