Australia Post reports 56pc drop in profits

By: Paul Howell


CEO Ahmed Fahour says something has to give on shrinking letters business.

Australia Post reports 56pc drop in profits
Australia Post CEO Ahmed Fahour has flagged the need for "urgent" changes in the year ahead to improve the company's bottom line.

 

Australia Post has reported a half-year profit of $98 million to December 31 last year – 56 per cent lower than for the same period in 2013.

The company says the drop in profit is the fault of its letters business.

This registered a loss of $151 million for the first half of the current financial year, 57 per cent more than it lost over the same period 12 months earlier.

Australia Post CEO Ahmed Fahour says significant reforms – both internal and external – will be required over the next year.

 "This year we are forecasting a full-year loss for the first time," he says.

"It is urgent we make changes this year to ensure we can continue to maintain a reliable, accessible postal service for all Australians."

He is seeking government approval to change Australia Post’s regulations, enabling it to introduce a dedicated service for non-urgent consumer mail.

 Those customers wanting the traditional overnight service would be required to pay a higher priority postage fee.

"We remain committed to providing services our customers have told us they value most, including our five-day-a-week delivery service, maintaining our nationwide Post Office network, and providing access to a world-class parcels service." 

The losses in the letters business were diluted in part by the relative success of Australia Post’s global parcels business. This grew by 4 per cent over the six months to December 31, when compared to the same period in 2013.

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