Australia Post wants to change forever: Here’s what it could mean for your mail service

Australia Post says it lost $200.3 million in 2022/2023 and expects further losses in the future unless community service obligations are changed.

Revenue remained stable at $8.97 billion, broadly the same as the previous year, Australia Post announced on Thursday.

The $200.3 million loss is only the second since it became a self-funded public company in 1989. Last year it made a profit of $55.3 million.

But while the group’s parcel business remains healthy, with sales up 0.9 percent to $7.3 billion, the group lost $384 million in letter delivery in 2022/2023, up 50 percent from the previous year. previous year.

The volume of letters fell by 7.8 percent to two billion, despite an increase in the number of business letters with interest rate changes and data breaches.

In response to a government consultation on the modernization of the postal service, she called the letter delivery service ‘no longer sustainable’.

The average Australian household now receives just 2.2 addressed letters a week – up from 8.5 a week in 2008 – and Australia Post says its mandate to deliver letters five days a week remains one of its top cost drivers.

As traditional mail has declined over time, operating this service has become increasingly costly relative to revenue.

As a result, Australia Post is actively advocating for government approval to reduce letter delivery frequency.

In total, community service obligations cost the group $442 million, an increase of 27 percent from 2021/2022.

Chief Executive and Managing Director Paul Graham said losses are not new to businesses and he wants to modernize Australia Post for the future.

“The headwinds facing Australia Post are not new and it is my job with the leadership team to transform and modernize Australia Post so that it can once again become a financially sustainable company,” said Graham.

Australia Post Chief Executive and Managing Director Paul Graham (pictured) warns the company will face more losses unless community service obligations are changed

“If we do everything in our power to run this business well and we get a positive regulatory response on the road to modernisation, I am confident Australia Post will return to profitability,” he added.

“Without this support, the loss in fiscal year 23 will be followed by many more. Inactivity could result in heavily devalued Australian assets.’

In March, the Albanian government launched a discussion paper on possible changes at Australia Post, including increases in postage rates and relaxing the requirement to deliver letters five days a week.

The results have not yet been announced.