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Australia Post reports first annual loss in 30 years
[SYDNEY] Australia Post on Friday delivered its first full-year loss in three decades driven by plunging letter volumes in the struggle to enter the digital era.
The after tax loss of US$154 million (S$316.4 million) follows an announcement in June of job losses, with some 1,900 redundancies expected over three years.
Despite ordinary stamped letters falling by 10.3 per cent, chief executive Ahmed Fahour said reform was underway and stressed growth in parcels.
Group revenue was stable at A$6.37 billion, with parcels revenue up 3.6 per cent to A$3.21 billion - delivering more than half of total income for the first time.
"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," Mr Fahour said in a statement.
"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." Parliament last week approved Australia Post's reform programme.
The company posted in February a 56 per cent fall in first-half net profit to A$98 million. The previous full year saw profits of A$116 million.
The postal service is the country's oldest continuously operating organisation and celebrated its 200th anniversary in 2009.