Australia Post saw its letters business plummet by a whopping ten per cent in the financial year 2015/16, an entirely predictable consequence of its strategy of huge price hikes and slashing service levels.
The fall in addressable mail was the biggest in the 207-year history of Australia Post, and contributed to a loss in the postal business of some $138m.
However overall the nation’s mail monopoly returned to profit with its key focus parcel business up by eight per cent contributing to a $36m full year profit, a significant turnaround from its $222m loss last year.
Revenue for AusPost was up by three per cent overall to $6.6bn
“Returning to profit is a pleasing result for our employees, post office operators and our other important stakeholders, and shows that Australia Post is on a more sustainable path for future growth,” says Ahmed Fahour, managing director and Group CEO.
“The parcels business has performed well despite increased competition from overseas players. We have outperformed in difficult market conditions to post an 8 per cent profit increase.
“Changes to the letters business introduced earlier this year were an important factor in the group returning to profitability. While the letters business is in structural decline, we have reduced our forecast cumulative losses in letters from around $5bn to $1.5bn over the next 5 years.”
AusPost upped the price of a letter by 40 per cent in the year from 70c to $1, causing the nation’s printers and mailing houses to rise up in ire.
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