Surge in online shopping boosts Australia Post’s bottom line

AUSTRALIA’S 209-year-old postal service has again boosted revenue off the back of a surge in online shopping — but new chief Christine Holgate has warned of a “sharp” decline in letter volumes.

THE nation’s 209-year-old postal service has again boosted revenue off the back of a surge in online shopping but new chief executive Christine Holgate has warned of a “sharp” decline in letter volumes.

Australia Post revealed parcel revenues — powered by the Aussie love of having consumer goods delivered to the home — has risen 8 per cent which had to compensate for a 10 per cent fall in snail mail.

This saw group revenue rise three per cent to $3.6 billion for the half year.

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Australia Post chief executive Christine Holgate. Picture: Hollie Adams/The Australian

Ms Holgate played down the overall profit boost of 65 per cent to $217 million, which was lifted by things like one off property sales.

The half included the busiest December ever with 37 million parcels delivered, while serving around 22 million customers at post offices.

Post also delivered 16 million Australian Marriage Law Postal survey forms and 12.7 million responses.

It hit 98 per cent of letters on time or early, during the six months.

The former Blackmores vitamins chief who only assumed the top job in October last year, is saying full year profit before tax is forecast to be in line with last year.

She did say that as the second half of Post’s financial year does not include Christmas, it expects to make a loss in the second six month period.

Ms Holgate followed on from Ahmed Fahour who was in the top job more than seven years.

She did say competitive pressures impacted the parcels earnings growth modestly.

While the parcel delivery is booming, Ms Holgate has a huge job in tackling the whack from the letters decline.

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Australia Post has pointed to growth in lucrative Asian markets.

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She said letters would have fallen to an even greater level had not the Australian Marriage Law Postal Survey boosted usage.

“Without this survey, letter volumes would have experienced an even sharper decline,” Post said in its results.

Addressed letter volumes have fallen more than 26 per cent in three years as large organisations continue to drive their communications online.

“The results demonstrate the significant challenge for Australia Post to continue to transform,” Ms Holgate said.

She said the postal service was looking at new ways to boost its 3500 post offices.

“It will be important Australia Post continues to meet the needs of Australians including by maintaining a healthy and viable Post Office network, including our Licensed Post Office partners,” Ms Holgate added.

“We are currently working to find new revenue streams for our Post Offices, as their role in communities becomes increasingly important to serve an ageing population and with traditional services closing branches.”

Ms Holgate pointed to growth in lucrative Asian markets.

Inbound parcel volumes from Asia were up 45 per cent for the six months, with almost all of this growth coming from China.

“International eCommerce volumes indicate a future opportunity for Australia Post.”