Australia Post has announced a loss of $88.5 million for the past financial year, as customers continue to turn away from letters.
The loss was an improvement on the past financial year’s loss of $200.3 million, while overall group revenue also lifted 1.8 per cent to $9.13 billion.
But 1.76 billion letters passed through post offices around the country during the past financial year, down 12.9 per cent.
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However, parcel revenue continued to grow to $6.46 billion, up three per cent, illustrating what Australia Post dubbed the “two speed nature” of the business.
CEO and managing director Paul Graham said he was pleased to see improved business performance, but that Australia Post still faced significant structural challenges.
“Our Post26 strategy and the historic phase one modernisation reforms have put the business on the right track, and we’re now starting to see green shoots as we turn around the business,” he said.
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“There are irreversible challenges confronting us, including the decline of letters and the shift from over-the-counter transactions to digital services.”
The group’s financial year report also pointed to a “clear oversupply” of post offices in metropolitan areas, sometimes at a density of more than 70 within a 7.5km radius.
“The first phase of modernisation, including the change to our Letters business, is progressing well. We continue to work closely with our union partners to implement this across our network,” Graham said.
“We are also focused on transforming our Post Office retail network alongside our valued licensees, as we work to ensure appropriate compensation for the services they provide, particularly Bank@Post.”
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Graham warned that Bank@Post was facing losses in the medium term unless bank partners offered additional funding.
“The changes we’ve made to the business are a significant step in the right direction for our customers, our team members, and the broader community,” Graham said.
“However, there is more work to do and further reform is required to ensure Australia Post is sustainable and delivers for communities for another 200 years.”
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