Community post offices report revenue growth.

 

Australia Post has announced group revenue for first half of $3.8 billion, up four per cent year-on-year.

 

Australia Post’s parcel and services revenue growth was up almost $300 million or 13 per cent on the same period last year to $2,6 million, underpinned by strong growth in parcels, financial and international services, supporting both business and consumer customers. 

 

Community Post Office revenue grew four per cent reflecting stronger performances in both corporate and licensed stores. 

 

This is the highest revenue growth in over a decade for these services without a major acquisition.  The profits from these businesses grew to $193 million, up 12 per cent.  All these business lines operate in highly competitive markets and they now account for over 70 per cent of group revenue.

 

Letter revenue was down nine per cent and letter losses rose a further $46 million or 112 per cent to a total loss of $87 million for this half.  

 

Although Australia Post secured $129 million in efficiencies in the period and has benefited from strong growth in other areas, this still has not fully compensated for the increasing costs supporting this important community service.

 

Group CEO Christine Holgate said: “Our strategy to diversify our business and focus on our customers is working well, evidenced by our record underlying performance.

 

“However, the costs to operate the letter business continue to rise, as our people are still required to deliver to every home or business every day, process and collect the mail, whilst letter volumes and revenues fall. The 10 cent letter increase in January will support our letters business going forward, but after four years of no increases, it alone will not fully compensate for the losses,”  she said.