Australia Post has lost $384 million on its letter businesses, after the service revealed its first full-year loss since 2015.
Announcing a group loss of $200 million for the 12 months to June 2023, the result is the second time that the group has recorded a loss since it was established as a government enterprise in 1989.
As the group’s operations transition in direction of parcel supply, somewhat than letters, it has develop into an growing pressure on profitability.
Currently, the common Australian family receives solely 2.2 addressed letters every week, down from 8.5 every week in 2008. This quantity is predicted to nearly halve within the subsequent 5 years.
But underneath neighborhood service obligations, Australia Post is required to keep up 4,000 publish places of work. In the 2022 monetary 12 months it had 4,310 publish places of work, 2,513 of those in rural and distant areas, which it claims value greater than $1.3bn to run.
While Australia Post’s letter business suffered heavy losses, its parcels and providers business continued to carry out strongly, recording income of $7.3bn in FY2023.
“The headwinds Australia Post is facing into aren’t new,” Australia Post chief government and managing director Paul Graham stated.
“We have a laser-like focus on simplifying our business, we’re stripping out the complexity accrued over a number of years and investing in our key growth area of parcels.”
“We now have a distinct two-speed business, with our Letters business weighing heavily on our eCommerce-driven Parcels business, retail and other services.”
Amid growing letter losses, Mr Graham known as on the federal authorities to pursue regulatory reforms to reinforce the service’s viability
“We have a clear plan and we’re doing everything we can within our control, however we need regulatory support,” he stated.
Source: www.perthnow.com.au
