Australia Post profits slashed despite postage price hike

Australia Post’s profits have fallen as the operation struggles to remain competitive.

Announcing its half-year financial results on Friday, Australia Post said its overall letter delivery operations resulted in a net loss of $2.1 million, but revenue was boosted by a 20-cent basic postage price increase.

Total revenue rose 1.1 percent to $5.1 billion, but pre-tax profit fell $198.7 million to $50.4 million.

Letters generated $952.2 million in revenue, up 0.9 percent, but volumes fell 11.5 percent.

The organization poured $219.9 million into business developments and investments.

“Our half-year results reflect a deliberate strategy to invest now to secure Australia Post’s long-term future,” chief executive Paul Graham said in a statement.

“We are evolving our business so that we can continue to provide first-class services to our customers and the community.”

More to come