Australia Post profits rocket

Full year profit before tax for Australia Post was AUD $126.1 million, more than 300% the $41m it made in 2016.

In a statement, Australia Post emphasized that it had achieved this “despite record letter volume decline”.

The postal operator was supported by its “continued strong growth in the parcels business”, driven by the e-commerce sector.

Addressed letter volumes were down 11.8% and contributed to a $180m loss before tax in the postal business. In contrast, parcels profit before tax increased by 4.8% to $299.7m.

Australia Post Acting Managing Director and Group CEO Christine Corbett said this result demonstrated the shift to becoming a major eCommerce player is paying dividends.

“Last Christmas we had our largest ever parcel delivery day, with more than two million parcels delivered in a single day, and we’ve continued to experience strong growth throughout what is traditionally a quieter second half,” said Corbett.

“With new entrants to the market contributing to overall growth in eCommerce volumes, we expect our parcels business to continue to grow, allowing for reinvestment in customer initiatives like MyPost, parcel lockers and digital trusted services.

“A pleasing highlight this year was an increased Net Promoter Score for customer engagement and we recently signed a new three-year Enterprise Agreement strongly supported by our large award workforce.

“The letters business still presents a significant challenge, with our largest ever 12 month volume decline experienced this year. We need to continue to ensure this business is sustainable, while managing the declining foot traffic in post offices, and we are speaking with the community on how they may use the letters service in the future.”

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