Australia Post has notched up its first full year loss in more than 30 years.
The national postal service has posted a $222 million loss after tax for 2014/15, compared to a $116.2 million profit a year ago.
Australia Post blamed a continual decline in letter volumes for the weak result. Letter volumes fell 7.3 per cent with losses in the mail business growing to $381 million as Australians switch to digital alternatives, Australia Post said in a statement.
However, that was offset by parcel revenue which rose 3.6 per cent to $3.21 billion. And for the first time, parcels made up more than half of the group’s revenue of $6.37 billion, which remained stable with the previous year.
Australia Post managing director and chief executive Ahmed Fahour said it had been a challenging year for the business and the letters service was undergoing an important transformation.
“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,” he said.
“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 eCommerce-centric organisation.”
He said despite the strong result from the group’s parcels business, Australia Post was up against a highly competitive market with more domestic and international freight companies offering sorting and deliveries.