Australia Post’s profits have been slashed as the operation fights to remain competitive.
Releasing half-year financial results on Friday, Australia Post revealed the overall letter delivering operations caused a net $2.1m loss, though revenue had been boosted by a 20c basic postage rate price hike.
Overall revenue ticked up 1.1 per cent to $5.1bn, but pre-tax profit fell $198.7m to $50.4m.
Letters have generated $952.2m in revenue, up 0.9 per cent, but volumes were down 11.5 per cent.
The organisation has pumped $219.9m into business upgrades and investment.
“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’re upgrading our business so we can continue to deliver world-class services to our customers and the community.”
More to come
